BitClub Network Ponzi Scheme Crashes After Thee Men Get Arrested

bitclub network

The latest crypto Ponzi scheme BitClub Network, crashed after the New Jersey authorities arrested three men for defrauding investors of more than $722 million as per the announcement from the Department of Justice that we have in our latest cryptocurrency news.

The announcement stated that BitClub Network promised huge returns in exchange for investing in the shared cryptocurrency mining pool provided by the platform. The parties at the center of the scheme allegedly misappropriated more than $722 million of those funds that they used for themselves rather than in the promised mining pool. Authorities accuse the three-man of falsifying information on returns so they could solicit more investment as well. The three accused are Jobadiah Weeks, Matthew Coettsche both from Colorado and Joseph Abel of California.

The authorities charged them with conspiracy to commit wire fraud with a maximum sentence of 20 years in prison as well as conspiracy to offer and sell unregistered securities. Abel had been the least involved in the scheme and has only been charged with conspiracy to offer and sell unregistered securities with a prison sentence of 5 years. The press release also mentioned some other conspirators who have not been charged with crimes.

This is not the first sign that BitClub Network could not be fully above the board operation. Back in 2016, the crypto news outlet 99bitcoins warned against investing in this platform despite removing the earlier ‘’scam’’ title they earned before. The author, Ofir Beigel commented;

 “After gathering the facts I can’t prove that Bitclub network is a scam beyond a shadow of a doubt. I do however still think that Bitclub Network’s business model is lacking and wouldn’t invest in it personally.”

Back in 2017, the reports emerged for the accusation that BitClub even launched a malleability attack on the Bitcoin network. However, this is not among the top popular scams in the crypto industry. One of the most famous crypto exit scams in the case of OneCoin, back in November, the court found an attorney guilty of laundering more than $400 million on behalf of the former founder of the scam platform Ruja Ignatova. He was paid up to $50 million for his services. Ignatova is still missing but the website went finally offline last week.

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