BitClub Network
A Bitcoin 'mining pool' scheme (2014–2019) that the U.S. DOJ says took at least $722M by selling shares in non-existent mining returns and rewarding recruitment.
Also known as: BitClub Network, BitClub
Summary
BitClub Network operated from April 2014 to December 2019, soliciting money for shares in purported Bitcoin "mining pools" and rewarding investors for recruiting others. The DOJ says it took at least $722 million from investors. [1][2]
Mechanism
According to the DOJ, operators showed investors false "mining earnings" figures. In a cited message, a co-conspirator described inflating displayed earnings as "ponzi territory". [2]
People
Several defendants were charged in December 2019; programmer Silviu Balaci pleaded guilty in 2020. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
- Matthew GoettscheOrganizer (charged)IndividualsNamed by the U.S. DOJ as a primary organizer of BitClub Network, a Bitcoin 'mining pool' scheme that took at least $722M. Charged with wire-fraud and unregistered-securities conspiracies.
- Jobadiah WeeksPromoterIndividualsA large-scale promoter of BitClub Network, the $722M crypto-mining Ponzi. He pleaded guilty in 2020 to conspiring to sell unregistered securities and to tax evasion (failing to report $10M+ in income).
- Joseph AbelPromoter
Sources (2)
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
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