DOJ Drops BitClub Charges Against Alleged Founder
The U.S. Department of Justice (DOJ) is reportedly preparing to dismiss criminal charges against Matthew Goettsche, the alleged founder of the $722 million BitClub Network crypto Ponzi scheme. The decision comes after years of legal proceedings and could bring one of the largest crypto fraud cases to an unexpected end.
DOJ Reportedly Plans to Dismiss the Case
According to Bloomberg, the Deputy Attorney General’s Office has instructed federal prosecutors in New Jersey to dismiss the case with prejudice, meaning the charges cannot be filed again. The final legal terms are still being negotiated before the court is officially notified.
If approved, the move would reverse the DOJ’s 2019 indictment against Goettsche, whose trial was expected to begin after several years of delays.
BitClub Network Fraud Allegations
Federal prosecutors accused Goettsche of creating and operating BitClub Network, a cryptocurrency mining investment program that allegedly defrauded investors of approximately $722 million.
Authorities claimed the platform promised mining profits while operating as a Ponzi scheme. Court documents also alleged that Goettsche once described the business model as being built “on the backs of idiots.”
Co-Defendants Pleaded Guilty
While Goettsche continued to fight the charges, several co-defendants accepted plea agreements.
In 2020, Joseph Frank Abel pleaded guilty to offering and selling unregistered securities in connection with the BitClub fraud case. Two other defendants also admitted their roles in the scheme.
Political Connections Highlighted
Bloomberg reported that Goettsche assembled a legal team with ties to the Trump administration. Among those reportedly advocating for the dismissal were attorney Bradford Cohen and criminal justice advocate Brett Tolman, both of whom have been linked to high-profile legal and pardon efforts.
The DOJ has not publicly explained the reason behind the reported decision.
