• Victims of the Ponzi scheme BitConnect may receive over $17 million in restitution.
• The United States District Court for the Southern District of California ordered this restitution to be distributed to nearly 800 victims from over 40 different countries.
• The US Department of Justice stated that BitConnect operated a „textbook Ponzi scheme.“
Victims of the notorious Ponzi scheme BitConnect may finally receive some reprieve in the form of over $17 million in restitution. The United States District Court for the Southern District of California has ordered restitution to be distributed to nearly 800 victims from over 40 different countries who lost money investing in the fraudulent project.
The US Department of Justice (DOJ) stated that BitConnect operated a „textbook Ponzi scheme“ in which earlier investors were paid with money from later investors. The scheme defrauded thousands of investors across the world, leading to significant losses for many.
The court-appointed receiver for this case, David Weber, stated that he was “pleased to have achieved this important milestone on behalf of the BitConnect victims.” He also added that he was “committed to the process of recovering additional assets to the extent possible so that those funds can be distributed to the victims.”
Weber has worked over the years to track down the money that was lost in this scam. He has been able to collect $7.8 million from the US-based defendants and $1.2 million from the UK-based defendants. He is also in the process of recovering additional funds from several other companies and individuals that were involved in the scam.
The court has also ordered that a claims process be established for the victims to submit their claims for reimbursement. The claims process is expected to begin in the coming weeks and will be overseen by an experienced claims administrator.
Despite these measures, the chances of the victims recovering all of their lost funds are slim. Nevertheless, this restitution should be seen as a step in the right direction for the victims. Hopefully, this will serve as a warning to those considering investing in questionable projects in the future.