The U.S. has sentenced a Los Angeles man to 38 months in federal prison for his role in the $3.4 billion Bitconnect crypto Ponzi scheme. He admitted to earning no less than $24 million from the scam, all of which will now be “repaid to investors in restitution or forfeited to the government,” the Department of Justice (DOJ) explained.
US Bitconnect Promoter Sentenced to 38 Months in Prison
The U.S. Department of Justice (DOJ) announced Friday that a Los Angeles man has been sentenced to “38 months in prison for his participation in Bitconnect.” The DOJ described Bitconnect as “a massive fraudulent cryptocurrency investment scheme.”
Glenn Arcaro, 44, conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing Bitconnect’s proprietary coin offering and digital currency exchange as a lucrative investment, court documents showed.
The Justice Department described:
The Bitconnect Ponzi scheme ensnared 4,154 victims from 95 countries making it a true worldwide Ponzi scheme.
According to the DOJ, Arcaro transmitted the proceeds that he earned from the Bitconnect scheme to offshore accounts, changed some of the proceeds into precious metals storage, and obtained foreign passports. The Justice Department noted that his goal was to avoid paying federal and state income taxes on his Bitconnect income and to shield his assets from collection by the Internal Revenue Service (IRS).
The DOJ detailed:
Arcaro admitted that he earned no less than $24 million from the Bitconnect scheme, all of which, according to court documents, will now be repaid to investors in restitution or forfeited to the government.
According to U.S. authorities, the Bitconnect Ponzi scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators allegedly obtained about $2.4 billion from investors. Recently, the Indian police launched an investigation into Bitconnect and booked its founder, although the U.S. had already charged him in February.
What do you think about Glenn Arcaro going to prison for 38 months for his role in the Bitconnect Ponzi scheme? Let us know in the comments section below.
Source: Regulation Archives – Bitcoin News
Federal Energy Agencies’ Unwillingness to Act on White House’s Crypto Mining Recommendations Miffs US Lawmaker
Jared Huffman, a United States lawmaker who advocates for increased scrutiny of crypto-mining entities, has reportedly chastised U.S. energy agencies that he accuses of failing to act on the White House’s call on them to do “reliability assessments of current and projected crypto-asset mining operations on electricity system reliability and adequacy.” However, a commissioner at […]
Jared Huffman, a United States lawmaker who advocates for increased scrutiny of crypto-mining entities, has reportedly chastised U.S. energy agencies that he accuses of failing to act on the White House’s call on them to do “reliability assessments of current and projected crypto-asset mining operations on electricity system reliability and adequacy.” However, a commissioner at the Federal Energy Regulatory Commission, Allison Clements, insists crypto mining should not be singled out from grid studies.
Agencies Reviewing White House Recommendations
Jared Huffman, a United States House of Representatives member, has reportedly queried some U.S. federal agencies’ unwillingness or reluctance to give their response to recommendations contained in a recently released White House report on cryptocurrency mining.
According to Huffman, a California representative and member of the Democratic Party, the Federal agencies’ silence could well mean “this problem [environmental damage allegedly caused by crypto mining] is potentially getting worse.”
As stated in a Bloomberg Law report, U.S. energy and environmental officials haven’t announced plans to pursue possible efficiency standards or to conduct energy use studies as demanded by the White House report. For instance, Costa Samaras, the principal assistant director for energy in the Office of Science and Technology Policy, is quoted in the report acknowledging that agencies are yet to issue a response.
“Each agency is reviewing the recommendations, and will announce commitments as part of their own process and timeline,” Samaras reportedly said.
On the other hand, Samaras’ counterparts at the Federal Energy Regulatory Commission (FERC) and North American Electric Reliability Commission (NAERC) insisted they already have safeguards in place should a grid shortfall occur hence there is no plan to do a reliability assessment specifically for cryptocurrency.
Crypto Mining Should Not Be Singled Out From Grid Studies
In its report, titled ‘Climate and Energy Implications of Crypto Assets in the United States,’ the White House said both the FERC and NAERC along with regional entities “should conduct reliability assessments of current and projected crypto-asset mining operations on electricity system reliability and adequacy.”
The White House report also implored agencies responsible for collecting energy information to “consider collecting and analyzing information from crypto-asset miners and electric utilities in a privacy-preserving manner to enable evidence-based decisions on the energy and climate implications of crypto assets.”
Unimpressed by the agencies’ justifications, Huffman, who has campaigned for greater scrutiny of crypto mining facilities, warned he will be forced to take action if nothing is done. He said:
If I don’t hear from them in the next few weeks, I’m certainly going to pick up the phone and find out what’s going on.
Meanwhile, Huffman’s fellow Democrat and a commissioner at the FERC, Allison Clements, is quoted in the Bloomberg Law report insisting that crypto mining should not be singled out from grid studies.
“It’s unclear to me that an individual reliability assessment related to cryptocurrency mining, which happens in places, should be separated out from general reliability planning of any particular node, any service territory, any region, any interconnect,” Clements reportedly said.
The FERC commissioner added that while crypto mining is something that is on the agency’s radar, she did not have “anything to report, relative to anything coming up soon.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Source: Regulation Archives – Bitcoin News