At least 56 million dollars’ worth of crypto funds has been decided to be sold by the Department of Justice, USA (DOJ) through an auction sale proceedings in which funds were seized by law enforcement agencies from the operator of Bitconnect. While Bitconnect’s operator has been awarded jail time for 20 years, the Court ordered the selling of his crypto assets for making the loss good.
Bitcoins can be bought at prices, cheaper than the market value if they are sold in an open auction under Court’s directions. It is a usual practice that when law enforcement agencies seize crypto funds, then after the completion of the trial, Courts direct selling of the assets. Generally, the sale is ordered to make the loss good caused by the financial criminal, crypto fraudster, or fraudulent company. One such fraudulent crypto scheme was once initiated by a man named “Glenn Arcaro”, who was found operating the fraudulent company.
At the complaints of the investors, a complaint was lodged before the US law enforcement agencies. Action on the complaint was taken by the authorities and Arcaro, who is aged 44, was caught for being the prime suspect. After his arrest, the law enforcement agencies also found out that Arcaro was possessing crypto funds worth more than US$ 56 Million.
Thereafter, an investigation was authorized which proved against Arcaro and a Court case was lodged against him and trial initiated. In this case, DOJ asserted that Arcaro, from the platform of Bitconnect, looted investors’ money amounting to more than US$ 2 Billion. The Court has now concluded the trial and Judge Todd W. Robinson has passed a ruling.
As per the ruling of the Court, Arcaro was found guilty as charged and therefore awarded maximum jail time i.e. 20 years. Judge Robinson also permitted DOJ to arrange for the sale of seized crypto funds from Arcaro. Under Court’s directions, DOJ is now arranging an open auction in which it will be selling cryptocurrencies that were once properties of Arcaro. Although the loss caused single-handedly by Arcaro is huge than the seized funds, yet the Court’s intention is appreciable. Sale of assets is necessary for ensuring whatever loss can be made good, noted Judge Robinson.
It was on the specific requests of the AG Office and DOJ that the Court passed the liquidation of assets order. Both had moved individual motions suggesting the Court sell the seized assets.
During the course of the trial, when Arcaro was brought to court, he pleaded guilty. It was an admission on the part of Arcaro that he was in fact involved in fraudulent activities. He may have been advised by his lawyer to do so in the anticipation that he might be rewarded reduced jail time. However, as per Judge Robinson’s ruling, maximum punishment of imprisonment has been granted to the accused.
By chrisdorney – shutterstock.com
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