According to a recent press release from the U.S. Department of Justice (DOJ), a federal district court has "ordered ... that over $17 million in restitution be distributed to approximately 800 victims from over 40 different countries due to their investment losses in BitConnect, a massive cryptocurrency investment scheme, which defrauded thousands of investors worldwide." The founder of BitConnect was previously indicted for his role in the multimillion-dollar fraud, and its top U.S.-based promoter has pleaded guilty to conspiracy to commit wire fraud.
In a final notable enforcement action, the European Union Agency for Criminal Justice Cooperation (Eurojust) recently published a press release announcing a coordinated action with Europol that "has led to the dismantling of a cryptocurrency fraud network operating from Bulgaria, Cyprus and Serbia." According to the press release, "[t]he network operated professionally to set up call centres, which defrauded numerous victims in Germany, Switzerland, Austria, Australia and Canada for at least tens of millions of euros." The press release notes that as part of the action, enforcement agencies seized "over 150 computers, various electronic equipment and data back-ups, three cars, two luxury apartments and one million US dollars in cryptocurrencies and 50 000 EUR in cash."
For more information, please refer to the following links:
- Crypto Fraud Victims Receive Over $17 Million in Restitution from BitConnect Scheme
- Eurojust: Takedown of fraudulent cryptocurrency network in Bulgaria, Cyprus and Serbia
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.