Following on from our protection two days in the past of Craig Grant’s phonecall from the SEC, he’s since made a few of proof he supplied to the SEC public.
In two separate movies Craig Grant has revealed detailed chat logs between himself, Glenn Arcaro and Trevon James.
The chat logs are from Fb messenger and span early 2017 to December. It’s not recognized whether or not these are the one chat logs Grant supplied the SEC.
Having sat by the over two hours of footage Grant uploaded, I’ve categorized the extra attention-grabbing tidbits into numbered bullets beneath.
How a lot cash they stole from BitConnect buyers
Whole particular greenback quantities aren’t talked about in Grant’s chat logs, nonetheless they do gloss over bitcoin pockets balances, BCC token balances and cash spent on promoting.
Oh and there’s the BitConnect developer fund, which was awarded to prime buyers as a share of complete funds invested underneath them.
This was one thing BitConnect promoters had been to not focus on or disclose to the general public underneath any circumstances.
1. Glenn Arcaro labored instantly with Satish Kumbhani.
Kumbhani is at present wished by Indian authorities. Along with Divyesh Darji, the pair are believed to be the masterminds behind the BitConnect Ponzi scheme.
Darji was apprehended by Indian authorities a number of months in the past. Kumbhani stays at massive.
2. In October 2017 BitConnect slashed the event fund by 33%.
3. In October 2017 BitConnect funding dipped “so much decrease”, inflicting concern amongst Arcaro, Grant and James.
The RegalCoin Ponzi scheme, bitcoin’s worth and a fork had been blamed for the dip in BitConnect funding quantity.
Arcaro instructed James and Craig to not discuss RegalCoin in any capability on their respective YouTube channels.
Grant additionally speculated the funding dip may need been attributable to BitConnect transferring “associates out of our down line to another person”.
4. The dip in new BitConnect funding prompted Arcaro to instruct Grant and James to advertise BitConnect with “hyip key phrases in YouTube”.
“HYIP” stands for “excessive yield funding program” and is MLM underbelly code for “Ponzi scheme”.
The names of BitConnect’s rival Ponzi schemes used on this effort embrace EthTrade Membership , CoinXL and RegalCoin.
5. As of September 2017, Craig Grant was spending $500 to $1000 a day trip of his growth fund to promote BitConnect on Fb and YouTube (Adsense).
6. On October twenty third 2017, Trevon James was spending roughly $8000 a fortnight to market BitConnect.
By that stage Craig Grant had upped his BitConnect promoting spend to $12,000 every week.
7. On at the least one event, Trevon James used growth funds to complement himself by investing in additional BCC tokens.
8. As of September 2017, Vietnam was the second largest supply of funds invested in BitConnect behind the US.
9. Whereas selling BitConnect, Glenn Arcaro believed his time was valued at $5000 an hour.
10. Throughout hurricane Irma (August-September 2017), Glenn Arcaro was on the island of Bali in Indonesia. Craig Grant was staying in an “all inclusive resort” in Jamaica.
When he wasn’t travelling round, Arcaro seems to have been hiding out in Thailand and neighboring south-east Asian international locations.
He additionally frolicked within the Ukraine, US and Dubai.
11. A snapshot of Trevon James’ BitConnect backoffice as of October twenty third, 2017, revealed $113,541 in ROI earnings, $625,199 in referral fee earnings and a growth fund stability of $154,672.
12. Craig Grant was enthusiastic about constructing a BitConnect downline within the Philippines as a result of “Asian tradition know how one can comply with directions”.
13. The downline of BitConnect promoters “Robert and Helen” from Vietnam used stolen invested funds to purchase homes and automobiles.
Robert and Helen themselves would later obtain a paid Lamborghini from BitConnect company.
14. Glenn Arcaro organized the November California yacht occasion within the hopes of “making a lot cash” from attendees going “all in … each emotionally and financially” on BitConnect.
Folks simply need to be a part of one thing greater than themselves.
They’re bored and so they’re [sic] lives usually suck. In the event that they really feel like they belong someplace, all of the guards come down, that’s once they begin investing for actual.
No(t) this little 10k, 20k shit however actual dough which is normally accessed in 401ks iras and so forth…
15. To attend Arcaro’s California yacht occasion, BitConnect promoters needed to have invested at the least $1000.
16. As of November 2017, considered one of Craig Grant’s BitConnect accounts at Financial institution of America held $343,801.
17. Within the week of October sixth, 2017, Craig Grant generated $1,422,880 of BitConnect downline funding underneath him. Trevon James generated $1,955,270.
18. Glenn Arcaro revealed that complete funding quantity that very same week US-wide was round $7 million.
Throughout the identical interval Trevon James claimed Vietnam as a rustic was producing $18 million every week in new funding quantity.
19. As of October ninth 2017, Trevon James was producing on common $400,000 of latest BitConnect funding underneath him each day.
Glenn Arcaro responded by confirming complete new funding quantity throughout the US on the time was round 1,000,000 {dollars} a day.
20. In October 2017 Glenn Arcaro hoped to have 1000 bitcoin stashed away by the subsequent BitConnect occasion in Thailand.
On the time 1000 bitcoin was value round $47 million USD.
21. Trevon James refused to attend BitConnect’s 2018 Thailand occasion except it meant him making “3x what I’m making now”.
Craig Grant refused to go as a result of he doesn’t “like lengthy flights”.
22. Within the week of October nineteenth 2017, Trevon James was making nearly $20,000 every week in referral commissions. This was from a downline of 4814 BitConnect buyers.
23. Serial scammer Michael Weber was Trevon James second highest BitConnect referral.
Weber (proper) first appeared on BehindMLM in 2015 as admin of the X100K pyramid scheme.
After collapsing quite a lot of occasions X100K was deserted in early 2016. Weber (proper) returned later within the 12 months with PIF2Cash, a Ponzi cycler.
On or round Could 2017 Weber launched Coin Nuggets, a matrix-based Ponzi cycler.
Coin Nuggets is believed to have been Weber’s final rip-off earlier than signing up underneath James in BitConnect.
How a lot Weber personally stole from BitConnect buyers is unclear.
24. Trevon James’ BitConnect advertising and marketing efforts noticed him declare he made 73 bitcoin by BitConnect in 5 months.
On the time (late Oct 2017), this equated to someplace between $400,000 to $450,000 USD.
25. Craig Grant used his associate Yuliana to advertise BitConnect. Trevon James had hoped to rope his associate Paulina into additionally selling BitConnect in Polish.
26. Craig Grant’s “final earnings tax submitting was in 2002”. He doesn’t seem to have declared any of his BitConnect earnings with the IRS.
27. As of October thirtieth 2017, Trevon James was making round $12,000 a day in BitConnect referral commissions.
That very same week Glenn Arcaro claims BitConnect funding quantity within the US was over $10 million, a brand new document.
28. Craig Grant “like(s) being underneath the crypto radar, (whereas) earn(ing) tons of cash from common people”. A sentiment Glenn Arcaro agreed with.
29. As of November 2017 Trevon James had over seven thousand instantly recruited BitConnect buyers underneath him.
30. As of November twelfth 2017, Craig Grant had made sufficient by BitConnect to reinvest $500,000 over the interval of every week.
Trevon James responded by claiming he would even be at $500,000 in invested funds “in a number of weeks”.
31. As of November twelfth 2017, Trevon James was holding 128 BTC in BitConnect funds in considered one of his Exodus trade wallets.
On the time this equated to round $836,000.
James went on to say he was in a position to make investments $10,000 each day into BitConnect and “money out the remainder”.
32. After telling his granddad how a lot he was incomes in BitConnect, James’ granddad commented he was ‘incomes greater than the (NFL) gamers‘.
33. That very same week Craig Grant claimed to have misplaced 50 BTC he tried to switch out of Exodus.
James responded by stating
I talked to a man who gave me numerous advise early and he mentioned get my shit off exodus trigger individuals may pay exodus to fuck my shit up.
34. At one level Glenn Arcaro was going round telling individuals Craig Grant and Trevon James had “a pair million (invested) in (BitConnect) loans”.
35. The BitConnect promoter Lenka CryptoGirl (proper) was a puppet of her “biz thoughts boyfriend”.
Glenn Arcaro claims they’d made $40,000 in referral commissions as of August twenty fourth, 2017.
Craig Grant thought Lena CryptoGirl was an “anoying [sic] bitch (who) speak(ed) about herself an excessive amount of”.
36. Craig Grant claims “bitcoin can’t be taxed”. To which James replied;
Proper!! Nobody can show what number of bitcoin I’ve or don’t have. Not even the FBI.
Whether or not Trevon James reported any of his BitConnect earnings to the IRS is unclear.
Retaining secrets and techniques
Retaining information of what was occurring behind the scenes from buyers was an essential a part of conserving BitConnect operating for so long as it did.
Listed here are the discussions Grant, James and Arcaro needed to that extent.
37. Satish Kumbhani “flipped” when he found Glenn Arcaro had made a video with particulars of BitConnect’s growth fund.
38. Glenn Arcaro labored with Satish to maintain it quiet about how a lot prime promoters had been receiving to market BitConnect by the event fund.
Arcaro warning James and Grant to not ever talk about their growth fund balances is a recurring theme all through the cat logs.
39. In late September 2017, Craig Grant revealed a video through which he mentioned BitConnect doubtlessly canning their MLM compensation plan.
The data was not public at that stage and on behalf of BitConnect administration, Glenn Arcaro demanded Grant take the video down.
40. Arcaro and Grant labored collectively to cease different buyers (Trevon James) speaking about plans can BitConnect’s MLM compensation plan
41. BitConnect administration received upset when Craig Grant talked “about different firms” in his YouTube movies.
BitConnect as a securities providing
Though it needs to be blatantly apparent by now, Grant’s chat logs present ample proof he, Arcaro and Brown had been selling BitConnect as a safety.
42. In November 2017, Arcaro described BitConnect to Grant and Brown as follows:
The purpose is to create one thing that you press a button and cash is available in. True push button earnings.
No person will be capable to compete. The folks that go away will probably be sorry they did.
43. In his advertising and marketing pitch for his Future Cash funnel, Glenn Arcaro claimed BitConnect was a possibility that “may have you ever incomes as much as 8 to 10% returns in your investments… PER MONTH!”
44. Along with personally selling unregistered securities, Craig Grant educated “college students” instantly underneath him to advertise BitConnect and “construct good downlines”.
45. Glenn Arcaro charged $297 for entry to his Future Cash BitConnect advertising and marketing funnel.
Arcaro is believed to have saved any funds paid in as Future Cash charges by BitConnect buyers.
Individuals of curiosity
A number of people of curiosity are talked about in Grant’s chat logs.
In no specific order…
46. Kevin Black, CEO of U Can Fly and former Senior Vice President of City Music at Interscope Data, was desperate to spend money on BitConnect.
47. Glenn Arcaro employed Kameron Pollock as a “full time video man” to journey with him and “run video and photograph content material for his social media”.
48. Trevon James claims he marketed BitConnect by “copying” the model of Gary Vaynerchuck.
49. Jeff Lombardo, a “music, journey and life-style photographer” with 51,000 Instagram followers, was eager to talk to Glenn Arcaro about his BitConnect funding.
50. YouTuber jsnip4 was initially reluctant to cowl BitConnect, particularly Craig Grant claiming to have misplaced $150,000 in BTC to hackers.
Jsnip4 would go on to turn out to be considered one of BitConnect’s most vocal critics on YouTube.
51. I’m not likely positive the place to place this… so uh, right here goes:
If I’m not mistaken, that’s BitConnect investor Crypto Clover with some… uh… girls of… um, yeah.
Crypto Clover (aka Calen Powell) was intercepted by the FBI when he tried to re-enter the US a number of months in the past.
52. On a considerably associated word, right here’s an trade between Craig Grant and Trevon James from late November 2017 (on the California yacht occasion);
James: Pauline and tav are right here additionally. They not going to the occasions tho.
Grant: Glad I left my fam behind. They be cramping my model.
James: Yea I do know the sensation. Belief points. She doesn’t belief me alone with y’all lol.
Grant: She gonna should, or you’ll miss out on future occasions for regionals solely.
Nigga you too younger to remain devoted without end, don’t child your self.
James: Yea. A little bit extra time. She’s rising out it.
Fortunate for her AND me it’s not many ladies in crypto.
Grant: Sihiiiiiit, wait until you attain excessive worth escort stage.
The proprietor of BitClub Community is a pedophile
This one speaks for itself…
53. Glenn Arcaro claims the proprietor of BitClub Community is a “registered pedophile” who lives in Los Angeles.
Random details that don’t match anyplace else
54. The skilled voice-overs utilized in BitConnect advertising and marketing campaigns induced Glenn Arcaro to get a “#marketingboner” and “nearly misplaced it in (his) pants”.
55. On October 4th 2017, the OKCoin trade reached out to Craig Grant a few “probability to cooperate sooner or later”.
56. Craig Grant is “terrified to be round individuals” as a result of he thinks he “gonna get shanked”.
57. On October thirteenth Glen Arcaro urged Grant and Craig transfer their BitConnect chat to “encrypted channels of communication”.
58. Craig Grant has twin citizenship with Jamaica.
59. In November 2017 Glenn Arcaro was frightened Joshua Jeppensen is perhaps making an attempt to steal Trevon James from his downline.
60. On November twenty first 2017 Craig Grant claimed “all crypto apart from bitconnect is a rip-off”.
61. The second chat between Grant, James and Arcaro abruptly ends on December 2nd, 2017.
62. Arcaro’s final try to achieve out to Grant on Fb was on March third, 2018. Grant didn’t reply.
I’d usually embed Grant’s two YouTube movies however owing to them being textual content centered, you’re higher off viewing them on YouTube itself.
Replace fifth October 2018 – A while within the final twenty-four hours Craig Grant has deleted each his Glenn Arcaro chat log movies.