Victims of the crypto pyramid BitConnect will receive compensation in the amount of more than $17 million, RBC writes with reference to the press release of the U.S. Department of Justice. The federal district court in San Diego ruled that the amount of compensation will be distributed among about 800 victims of BitConnect from more than 40 countries.

The BitConnect case is one of the most famous examples of fraud in the cryptocurrency market. An anonymous team of developers (the main of whom called himself Satao Nakamoto) offered to invest in the token BCC created by BitConnect and receive a stable income from it. For example, users who invested $10,000 were promised an annual return of 90%.

The project also advertised BitConnect’s allegedly patented technology, known as “BitConnect Trading Bot” and “Volatility Software,” as capable of generating significant and guaranteed profits by exploiting the volatility of the crypto market, the agency said.

The company used a classic “Ponzi scheme” for pyramid schemes, and did not disclose where the money came from to pay bonuses. In fact, BitConnect paid earlier investors with the money of those who came later.