BitConnect Settlement Talks Dead in the Water

Don't expect the BitConnect victims to see a quick resolution. A new status report in the class-action lawsuit makes clear the two sides are nowhere near a settlement, with the litigation positions too far apart to bridge the gap anytime soon.

The case is about to get messier. Plaintiffs are preparing to file a Fourth Amended Complaint after the Eleventh Circuit Court of Appeals reversed course in February, reinstating defendants who had been improperly kicked out of the lawsuit. Glenn Arcaro, BitConnect's top executive in the United States, is back in the crosshairs.

Arcaro already pleaded guilty to criminal charges related to BitConnect in September 2021. He also settled separate civil fraud charges with the SEC earlier this year. The plaintiffs are now weaponizing those admissions against him, arguing his guilty pleas and SEC settlement undermine any defense he might mount.

Arcaro isn't taking this lying down. He plans to file motions to dismiss the case and alternatively to stay it. His legal team is banking on the fact that he's already forfeited roughly $57 million in cryptocurrency to the federal government—money seized specifically to reimburse BitConnect investors, which includes the plaintiffs suing him now. In total, over $56 million has been recovered from Arcaro through criminal and civil proceedings.

The plaintiffs smell a delay tactic. They say Arcaro's arguments about parallel criminal proceedings and his asset forfeiture lack merit and serve only to stall the case without narrowing any real issues.

Then there's the Supreme Court angle. Arcaro applied for an extension to file a Petition for Writ of Certiorari on June 22nd. Justice Thomas granted it on June 28th, giving him until September 19th to file. He may also ask the court to stay this entire civil case pending the Supreme Court's decision on whether to hear his appeal.

The timing is tight. His criminal sentencing is scheduled for September 16th—just days before his Supreme Court filing deadline.

The Private Litigation Securities Reform Act actually provides for an automatic stay while any motion to dismiss is pending, so Arcaro has multiple levers he can pull to freeze this case in place. Plaintiffs will have to fight hard to keep the lawsuit moving forward.

For the investors who lost money in BitConnect, the path to compensation just got longer and more complicated. Settlement is off the table, and Arcaro is preparing for a legal brawl on multiple fronts.

🤖 Quick Answer

Is a settlement expected in the BitConnect class-action lawsuit?
No. Recent court filings indicate the two parties remain far apart in settlement negotiations, with divergent litigation positions making resolution unlikely in the near term. The case is expected to intensify following the reinstatement of previously dismissed defendants by the Eleventh Circuit Court of Appeals.

Who is Glenn Arcaro in the BitConnect case?
Glenn Arcaro was BitConnect's top executive in the United States. He pleaded guilty to criminal charges related to BitConnect in September 2021 and subsequently settled separate civil fraud charges with the SEC. He has been reinstated as a defendant in the class-action lawsuit.

What developments have recently occurred in the BitConnect litigation?
The Eleventh Circuit Court of Appeals reversed its earlier decision in February, reinstating defendants who had been improperly removed from the lawsuit. Plaintiffs are now preparing to file a Fourth

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