The millions will be given to a small number of victims, but the $2.4 billion fraudulent scheme affected thousands more.

A set of BitConnect investment scheme crypto scam victims may see some relief from the multi-billion dollar fraud scheme after a court ordered them to receive a share of a $17 million reparation.

According to a press release issued by the Department of Justice on the same day, the United States District Court for the Southern District of California ordered reparations for the “massive” fraud on Jan. 12. (DOJ).

800 victims of the fraud from 40 countries will be able to get a small portion of the $17 million restitution, which refers to the return of property or the monetary value of damages to the proper owner.

According to the DOJ statement, Bitconnect was a putative crypto lending platform that advertised proprietary technology such as the “Bitconnect Trading Bot” and “Volatility Software,” which promised investors guaranteed profits.

It offered a 1% annual return on average daily compounding interest.

Investors would swap Bitcoin for Bitconnect Coin (BCC), which could be lent out at various interest rates.

However, the entire platform turned out to be a “classic Ponzi scheme,” as early investors were rewarded with funds provided by future investors, according to the report.

The cryptocurrency platform began in 2016 but went bankrupt in 2018 after stealing $2.4 billion from over 4,000 users from 95 countries.

Satish Kumbhani, the accused founder of Bitconnect, was charged by the DOJ in February 2022. He is also the focus of an Indian police probe, and his current whereabouts are unknown.

Glenn Arcaro, the leading Bitconnect promoter in the United States, pled guilty to wire fraud conspiracy charges in September 2021 and was ordered to repay investors $24 million.

According to the DOJ, Arcaro and others utilised 15% of Bitconnect investor funds to create a slush fund for the advantage of the company’s owner and other promoters.

Arcaro was sentenced to 38 months in jail for his involvement in Bitconnect on September 16, 2022.