Cryptocurrency Theft: $56 Million of Confiscated Cryptocurrency Will Be Sold to Compensate Victims

Cybercriminals are now taking advantage of the ongoing craze around cryptocurrencies to trick potential victims and steal their digital money. Called one of the biggest heists in the crypto world, the US Department of Justice announced that it has seized $56 million worth of cryptocurrency as part of its case against the bitcoin scam, according to a press release.

The US Justice Department said that the victims would soon receive some compensation. “Proceeds from the sale will be used to help pay victims of the scam,” the US Justice Department said.

Bitconnect was a scam cryptocurrency. The US Justice Department said in its statement that the founders defrauded thousands of people out of $2 billion worth of bitcoin in 2017. The scheme is the biggest cryptocurrency fraud ever.

“With the entry of the Court’s Interactive Sale Order, the Government will begin the process of making the entire victim of the Bitconnect scheme by selling cryptocurrency and withholding proceeds in US dollars. The Government will retain custody of the confiscated proceeds in the cryptocurrency wallet and the court at the time of sentencing. intends to use these funds to provide compensation to victims pursuant to a future restitution order by the US Department of Justice.

The crypto to be sold was confiscated from Bitconnect’s top promoter, 44-year-old Glenn Arcaro, who pleaded guilty in federal criminal court to defrauding Bitconnect investors in the United States and abroad, including fraudulently defrauding investors. was inspired to. 2 billion dollars. Arkaro is to be sentenced on January 7, 2022 and will face a maximum sentence of 20 years in prison, the press release said.

Blockchain can help prevent fraud

This is not the first time there has been a massive crypto scam. Back in August, hackers pulled off the largest cryptocurrency theft ever, stealing $613 million in digital coins from token-swapping platform Poly Network, only to return all tokens. This was only possible because of the increased security provided by Blockchain technology.

Blockchain technology creates a database of transactions with end-to-end encryption to ward off fraud and unauthorized activities. Furthermore, all data on the blockchain is stored in a network of computers, making it extremely difficult to hack.

Furthermore, every transaction recorded on the blockchain is irreversible—meaning it cannot be deleted or changed. Meanwhile, cyber researchers around the world have urged the crypto community to be on high alert, as crypto scams are rampant.

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