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$190 Million in Stolen Crypto Recovered—BitConnect Fraud Unraveled

Key Takeaways

  • ​Indian authorities recovered $190 million in cryptocurrency linked to the BitConnect fraud scheme;
  • BitConnect scammed investors out of 325,000 BTC, worth over $31 Billion, using false promises;
  • BitConnect promoter Glenn Arcaro pleaded guilty, but founder Satish Kumbhani is still missing.

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$190 Million in Stolen Crypto Recovered—BitConnect Fraud Unraveled

Indian officials have seized about Rs 1,646 crore (approximately $190 million) in crypto linked to the BitConnect fraud scheme after tracing digital wallets to physical devices.

Along with the crypto assets, authorities confiscated a black Lexus SUV and around $15,500 in cash.

That said, it represents only a small portion of the total funds lost. BitConnect’s fraudulent operations led to the disappearance of roughly 325,000 Bitcoin BTC $85,093.34 , worth over 31 billion, from investors who were misled by false promises.

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According to a February 15 statement, the scheme attempted to conceal transactions using the dark web. However, officials tracked various digital wallets and gathered intelligence, which led them to the physical devices containing the stolen funds. Authorities have moved the recovered assets to government-controlled accounts.

The US Securities and Exchange Commission (SEC) identified BitConnect as a Ponzi scheme in 2022. The platform had advertised a system that supposedly generated 40% monthly returns by using an automated trading bot.

Investors were encouraged to send their crypto to BitConnect, believing it would be used for trading. Instead, BitConnect founder Satish Kumbhani and promoter Glenn Arcaro transferred the funds into wallets they controlled.

In 2023, Arcaro pleaded guilty to conspiracy charges and agreed to return over $17 million to more than 800 victims. Kumbhani, however, has disappeared from India and remains missing.

Two Estonian men, Sergei Potapenko and Ivan Turõgin, recently confessed to running a $577 million crypto fraud scheme. What did authorities say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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