3 of the BitClub Network mining pool have been arrested on fraud charges for operating a Ponzi scheme that has taken a total of $722 Million USD ($1,059,754,488 AUD) from its investors.
In an indictment from the New Jersey district court (), 5 names in total appear on the document, however 2 of the names have been redacted. The 3 persons in question that are named on the document are Matthew Brent Goettsche, Jobadiah Sinclair Weeks and Joseph Frank Abel.
All 3 named persons have been charged with conspiracy to offer and sell unregistered securities, with only Goettsche and Weeks being charged with conspiracy to commit wire fraud. The 2 redacted persons named on the document are still at large so their names with remain under seal until they have been arrested.
Between April 2014 and December 2019, the scammers released false statistics of their hash rates and returns to convince people to buy shares and invest in their BitClub Network mining pool, and offered bonuses for finding more victims to invest into the scam.
The indictment document includes transcripts of the conversations where the scammers discussed in detail and planed the entire operation.
Currently the BitClub promotional website and mining pool websites are still online and operating, which has the potential to scam unwitting persons that stumble across the sites and sign up.
In an indictment from the New Jersey district court (), 5 names in total appear on the document, however 2 of the names have been redacted. The 3 persons in question that are named on the document are Matthew Brent Goettsche, Jobadiah Sinclair Weeks and Joseph Frank Abel.
All 3 named persons have been charged with conspiracy to offer and sell unregistered securities, with only Goettsche and Weeks being charged with conspiracy to commit wire fraud. The 2 redacted persons named on the document are still at large so their names with remain under seal until they have been arrested.
Between April 2014 and December 2019, the scammers released false statistics of their hash rates and returns to convince people to buy shares and invest in their BitClub Network mining pool, and offered bonuses for finding more victims to invest into the scam.
The indictment document includes transcripts of the conversations where the scammers discussed in detail and planed the entire operation.
Currently the BitClub promotional website and mining pool websites are still online and operating, which has the potential to scam unwitting persons that stumble across the sites and sign up.
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