Glenn Arcaro, a representative for BitConnect, was given a 38-month prison term.
Arcaro collaborated closely with Bitconnect’s founder Satish Kumbhani while serving as the company’s US National Promoter.
Arcaro was in charge of BitConnect investor recruitment across North America along with a team of US-based promoters.
According to the SEC, Arcaro defrauded investors in BitConnect of about $24 million.
Arcaro admitted guilt to criminal charges relating to BitConnect in late 2021 after being indicted.
According to IRS-CI Special Agent Tyler Hatcher, Arcaro was sentenced to;
Glenn Arcaro and his accomplices woven a web of fraud and deceit across the globe.
This web of lies was painstakingly dismantled by IRS-CI and our law enforcement allies, and today’s sentencing serves as a reminder that fraud does not pay.
You’ll get caught, and you’ll end up in jail.
Arcaro resolved related civil fraud claims that the SEC had brought against him earlier this year.
Aracaro turned over more than $56 million in cryptocurrency linked to BitConnect as a result of the criminal and civil cases brought against him.
When BitConnect itself failed in January 2018, it was a multibillion dollar Ponzi scheme.
In April 2017, BehindMLM examined BitConnect and determined it to be a Ponzi scheme.