Here is How We Know That Bitconnect is a Ponzi Scheme

Arcaro and his co-conspirators ensured that as much as 15% of the cash invested into Bitconnect went immediately right into a slush fund for use for the gain of its proprietor and promoters. In addition, Arcaro and the alternative defendants paid themselves from those price range thru using solid documents, which had been later used to fraudulently result in buyers to put money into Bitconnect.

Arcaro additionally fraudulently caused buyers to put money into Bitconnect with the aid of using falsely representing that he turned into an investor withinside the organization and receiving repayment for his offerings as an funding advisor. In reality, Arcaro turned into now no longer an investor nor did he offer any funding recommendation or provider on behalf of Bitconnect.

Arcaro additionally deceived buyers with the aid of using representing that his possession stake in Bitconnect turned into over 10%. In fact, Arcaro`s possession percentage turned into much less than 1% at any factor at some stage in the scheme's operation.