On October 8, 2025, the U.S. District Court for the District of New Jersey issued an omnibus order denying all 24 pending motions filed by Joby Weeks, a defendant in the BitClub Network $722 million Ponzi scheme, including his challenge to withdraw his guilty plea. Weeks, who pleaded guilty in November 2020 to conspiracy to commit wire fraud and tax evasion, argued his plea was invalid due to lack of securities violations, no victim harm, and sovereign citizen claims, but the court found these meritless, applying the Howey test to confirm BCN shares as securities. The ruling, rooted in 15 U.S.C. § 77b(a)(1) and SEC v. W.J. Howey Co. (1946), emphasizes strict liability under the Securities Act of 1933, rejecting Weeks’ “no notice” and “private membership association” defenses. Sentencing, delayed to February 6, 2026, looms as Weeks’ motions have stalled proceedings since May 2025.
Weeks’ filings invoked pseudolegal theories, claiming he is a “living man” named “Jobadiah-Sinclair of the family Weeks,” not the “commercial vessel” “JOBADIAH SINCLAIR WEEKS,” and that the court lacks jurisdiction. The judge rebuffed this, noting such challenges are “patently frivolous” and that U.S. laws apply to all persons within its borders, citing United States v. Reilly (2016). Weeks also denied victims, arguing BCN was a “private membership association” exempt from SEC rules, but the court clarified liability under Section 5 doesn’t require harm to merely unregistered sales to suffice. His tax evasion denial, claiming overseas residency exempted him, was contradicted by his plea colloquy admitting U.S. citizenship and Colorado residence.
The denial clears the path for sentencing, potentially 10 years per count plus restitution, amid the DOJ’s push for revocation of Weeks’ bail due to prior cocaine use and violations. BitClub, operating 2014–2019, defrauded over 1 million investors via fake mining pools, with Weeks among the defendants like Silviu Balaci and Joseph Abel, whose sentencings are also delayed to February 2025. Weeks’ filings, including a $22.2B counterclaim alleging government “lawfare,” reflect desperation, but experts dismiss sovereign citizen tactics as ineffective. The case underscores SEC/CFTC enforcement against crypto fraud, with $722M losses highlighting risks in unregistered schemes.
BitClub victims, facing seized assets, should monitor DOJ/SEC updates at justice.gov and sec.gov. BTC ($113,234) and ETH ($4,070) remain stable, but fraud erodes trustdiversify to USDC with stop-losses below $112,000, per TradingView. Follow @TheBlock__ on X for developments. Weeks’ denial may delay but not derail justice, cautioning against MLM crypto “opportunities.”
