€ 3:21-cr-02542-TWR Document 62 Filed 01/09/23 PagelD.399 Page 1 of 6
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`UNITED STATES DISTRICT COURT
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`SOUTHERN DISTRICT OF CALIFORNIA
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`UNITED STATES OF AMERICA,
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`Case No. 21cr2542-TWR
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`Plaintiff,
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`v.
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`GLENN ARCARO,
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`Defendant.
`
`
`PRELIMINARY ORDER OF
`CRIMINAL FORFEITURE
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`WHEREAS,in the Information the United States sought forfeiture of all right,
`title, and interest
`in property of Defendant GLENN ARCARO, ("Defendant"),
`pursuant
`to Title 18, United States Code, Section 982(a)(2)(A) and Title 28,
`United States Code, Section 2461(c) as property constituting, or derived from,
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`proceeds Defendant obtained directly or indirectly as the result of the violation of
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`Title 18, United States Code, Section 1349, including but not limited to $24,098,333,
`
`as set forth in Count |.
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`23
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`WHEREAS,on or about September 1, 2021, Defendant pled guilty before
`24||United States Magistrate Judge Mitchell D. Dembin to Count 1 of the Information,
`25 which plea included consent to the forfeiture allegations of the Information, and
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`26 ||consentto forfeiture of all property seized in connection with thecase, including but
`27||not limited to the entry of a forfeiture money judgment in the amount ofat least
`28 $24,098,333. Defendant agreed that
`the forfeiture money judgment of at
`least
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`

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`€ 3:21-cr-02542-TWR Document 62 Filed 01/09/23 PagelD.400 Page 2 of 6
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`$24,098,333 represents the proceeds Defendant personally received from the offense
`set forth in Count 1, which forfeiture shall be included and incorporated as part of the
`judgmentin this case; and
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`WHEREAS, on September 17, 2021, this Court accepted the guilty plea of
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`Defendant; and
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`_ WHEREAS,byvirtue of the admissions of the Defendant as set out in the plea
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`agreement and guilty plea, the Court hereby finds that the forfeiture money judgment
`of $24,098,333 represents the property constituting, and derived from proceeds
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`Defendant obtained directly and indirectly as the result of the violation of Title 18,
`United States Code, Section 1349, as set forth in Count 1 of the Information; and
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`WHEREAS, Defendant has agreed that the provisions for the substitution of
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`assets exist as provided in Title 18, United States Code, Section 982(b), which
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`incorporates Title 21, United States Code, Section 853(p), and agreed the United
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`States may take actions to collect
`$24,098,333; and
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`the forfeiture money judgment amount of
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`WHEREAS, between October 26, 2021 and January 14, 2022, Defendant
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`transferred approximately $56 million in cryptocurrency to the United States to be
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`appliedto his future restitution and forfeiture proceedings and judgments; and
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`WHEREAS, on November 12, 2021 and February 2, 2022, this Court entered
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`Orders authorizing the interlocutory sale of cryptocurrency, the net proceeds of which
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`were held by the United States Postal Service/United States Seized Asset Deposit
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`Fund as substitute assets, for all purposes, including future restitution and forfeiture
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`proceedings and judgments; and
`
`WHEREAS,
`the net proceeds received from the interlocutory sale of the
`cryptocurrencytotaled $38,898,165.78; and
`WHEREAS,
`in the interests of justice the United States does not seek
`forfeiture of the $17,647,801 of the $38,898,165.78 because it seeks, by separate
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`order, to have the Court direct those funds to be applied directly to the victims
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`e 3:21-cr-02542-TWR Document 62 Filed 01/09/23 PagelD.401 Page 3 of 6
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`included in Defendant’s restitution order and judgment; and
`WHEREAS,
`the United States requests that
`the Court order the funds
`designated for restitution in the amount of $17,647,801 of the $38,898,165.78 be
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`ordered transferred from the United States Postal Service/United States Seized Asset
`
`Deposit Fund to the Clerk, United States District Court for application to the
`restitution; and
`|
`remaining
`the
`forfeiture of
`seeks
`the United
`WHEREAS,
`States
`$21,250,364.78 of the $38,898,165.78 for Defendant’s forfeiture money judgment;
`and
`
`OoOoSDUMBPWWNe
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`WHEREAS,Defendantstipulated in the Joint Motion for Interlocutory Sale of
`Cryptocurrency that the funds comprising the $21,250,364.78 of the $38,898,165.78
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`represents forfeitable property constituting and derived from proceeds Defendant
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`obtained directly and indirectly, as the result of his violation of Title 18, United
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`States Code, Section 1349; and
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`WHEREAS,byvirtue of the facts set forth in the plea agreement andfinancial
`addendum, and the stipulation in the Joint Motion for Interlocutory Sale of
`Cryptocurrency, the United States has established the requisite nexus between the
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`offense and the forfeiture money judgment of $24,098,333, and the $21,250,364.78
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`of the $38,898,165.78 forfeited as collection of Defendant’s forfeiture money
`judgment; and
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`WHEREAS, byvirtue of said guilty plea, the United States is now entitled to
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`possession of the forfeited property, pursuant to Title 18, United States Code, Section
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`982(a)(2)(A), Title 28, United States Code, Section 2461(c), Title 18, United States
`Code, Section 982(b), Title 21, United States Code, Section 853(p), and.Rule 32.2(b)
`of the Federal Rules of Criminal Procedure; and
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`WHEREAS,the United States has requested that the Court enter an Order
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`which allows for the United States to provide direct written notice of forfeiture by
`email to the over 5,000 potential victims and petitioners in this case, as part of the
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`€ 3:21-cr-02542-TWR Document 62 Filed 01/09/23 PagelD.402 Page 4 of6
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`forfeiture ancillary proceedings under Title 21, United States Code, Section
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`853(n)(1), Federal Rule of Criminal Procedure 32.2(b)(6), and Rule G(4) of the
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`Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions;
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`and
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`WHEREAS,
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`the United States, having submitted the Order herein to the
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`Defendant through his attorney of record, to review, and no objections having been
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`received;
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`Accordingly, IT IS HEREBY ORDERED, ADJUDGED AND DECREED:
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`Based uponthe guilty plea of Defendant to Count | of the Information,
`l.
`a forfeiture money judgment in the amount of $24,098,333 shall be entered against
`Defendant GLENN ARCARO pursuant to Title 18, United States Code, Section
`
`982(a)(2)(A), Title 28, United States Code, Section 2461(c), and Federal Rule of
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`Criminal Procedure 32.2(b).
`2.
`Based upon the guilty plea of Defendant to Count 1 ofthe Information,
`all right, title, and interest of Defendant GLENN ARCAROin the $21,250,364.78 is
`hereby forfeited to the United States pursuant to Title 18, United States Code,
`Section 982(a)(2)(A), Title 28, United States Code, Section 2461(c), Title 18, United
`
`States Code, Section 982(b), and Title 21, United States Code, Section 853(p), for
`disposition in accordance with the law, subject to the provisions of Title 21, United
`States Code, Section 853(n).
`|
`3.
`The United States Marshals Service is hereby authorized to take custody
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`and control of the $21,250,364.78 forthwith and maintain the funds in its secure
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`custody and control pending ancillary proceedings, which will resolve the interest of
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`any third parties claiming an interest in the property.
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`4.
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`Pursuant to Rule 32.2(b) and (c), the United States is hereby authorized
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`to begin proceedings consistent with any statutory requirements pertaining to
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`ancillary hearings and rights of third parties. The Court shall conduct ancillary
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`proceedings as the Court deems appropriate only upon the receipt of timely third-
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`€ 3:21-cr-02542-TWR Document 62 Filed 01/09/23 PagelD.403 Page 5 of 6
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`party petitions filed with the Court and served upon the United States. The Court may
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`determine any petition without the need for further hearings upon the receipt of the
`Government’s response to any petition. The Court may enter an amended order
`without further notice to the parties.
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`5.
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`Pursuant to the Attorney General’s authority under Section 853(n){1) of
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`Title 21, United States Code, Rule 32.2(b)(6), Fed. R. Crim. P., and Rule G(4) of the
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`Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions,
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`the United States forthwith shall publish for thirty (30) consecutive days on the
`Government’s forfeiture website, www.forfeiture.gov, notice of this Order, notice of
`the United States’ intent to dispose of the property in such manneras the Attorney
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`General may direct, and notice that any person, other than the Defendant, having or
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`claiming a legal interest in the above-listed forfeited property must file a petition with
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`the Court within thirty (30) days of the final publication of notice or of receipt of
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`actual notice, whicheveris earlier.
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`6.
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`This notice shall state that the petition shall be for a hearing to
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`adjudicate the validity of the petitioner’s alleged interest in the property, shall be
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`signed by the petitioner under penalty of perjury, and shall set forth the nature and
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`extent of the petitioner’s right, title, or interest in the forfeited property and any
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`additional facts supporting the petitioner’s claim andtherelief sought.
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`7.
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`The United States shall also, to the extent practicable, provide direct
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`written notice by email
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`to any person known to have alleged an interest in the
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`property that is the subject of the Preliminary Order of Criminal Forfeiture, as a
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`substitute for published notice as to those personsso notified.
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`8.
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`Upon adjudication of all third-party interests, this Court will enter an
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`Amended Order of Forfeiture pursuant
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`to Title 21 U.S.C. § 853(n) as to the
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`aforementioned property, in whichall interests will be addressed.
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`€ 3:21-cr-02542-TWR Document 62 Filed 01/09/23 PagelD.404 Page 6 of 6
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`9,
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`This Court shall retain jurisdiction in the case for the purpose of
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`enforcing the Order of Forfeiture,
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`including enforcement of collection and
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`substitution of assets against the forfeiture money judgment.
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`The United States may, at any time, move pursuant to Rule 32.2(e) to
`10.
`amend the Order of Forfeiture to substitute property having a value not to exceed
`$24,098,333 to satisfy the forfeiture money judgment in wholeorin part.
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`11.
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`Pursuant to Rule 32.2(b)(4), this Order of Forfeiture shall be madefinal
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`as to the Defendantat the time of sentencing andis part of the sentence and included
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`in the judgement.
`DATED: i|4|23
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`TD ‘hice
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`HONORABLETODDW.ROBINSON
`UNITED STATES DISTRICT JUDGE
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