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A California man was prosecuted for participating in what is believed to be the largest cryptocurrency fraud to ever be criminally charged.
According to City News Service, about $57 million in cryptocurrency was seized through the prosecution of a man who was involved in a large-scale investment scheme.
The money will be sold to repay investors impacted by the fraud, according to federal prosecutors in San Diego.
The U.S. Attorney's Office said the liquidation is "the largest single recovery of cryptocurrency for victims to date," and stems from the investment scheme BitConnect, which defrauded investors out of more than $2 billion.
44-year-old Glenn Arcaro of Los Angeles pleaded guilty to federal charges for his role in misleading investors by claiming that BitConnect used technology called the "BitConnect Trading Bot" and "Volatility Software" to turn investors' money into massive returns, according to City News Service.
However, prosecutors say BitConnect operated like a Ponzi scheme by using investor funds to repay other BitConnect investors.
Officials say Arcaro was BitConnect's top promoter in the U.S. and admitted to earning at least $24 million through the scheme. His plea included an agreement to repay the investors and a judge ordered the liquidation of Arcaro's proceeds to begin the process.