The Investor’s Watchdog

The Investor's Watchdog

BitClub Network Leadership Charged with Fraud for Multi-Million Dollar Cryptocurrency Ponzi Scheme

Thursday, January 2, 2020

Four men responsible for orchestrating the $722 million BitClub Network cryptocurrency fraud have been arrested.

Jobadiah Sinclair from Arvada, Colorado and Matthew Brent Goettsche from Lafayette, Colorado were charged with conspiracy to commit wire fraud, while Joseph Frank Abel of Camarillo, California, was also charged with conspiracy to offer and sell unregistered securities. Silviu Catalin Balaci faced similar charges. The maximum penalty for wire fraud charges is 25 years in prison and $250,000 in fines for each charge.

The BitClub Network was established in 2014 as a purported bitcoin mining investment opportunity as “the most innovative and lucrative way to earn bitcoin.” The U.S. Justice Department’s indictment, however, identified BitClub Network as a Ponzi scheme with Sinclair, Goettsche, Abel and Balaci stealing millions from investors and even used the term “Ponzi” in correspondence. Moreover, the men attempted to sell shares in BitClub Network without registering the offering with the U.S. Securities and Exchange Commission.

Were you a victim of BitClub Network’s alleged Ponzi scheme? If so, we may be able to help you recover the money you lost. Our team of attorneys has been fighting for victims of investment fraud and broker misconduct since 1998. Call ChapmanAlbin LLC at 1-877-410-8172 for a free, no-obligation consultation.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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