On February 4, 2026, the U.S. District Court denied Joby Weeks‘ motion to withdraw his guilty plea in the BitClub Network Ponzi scheme case, marking another setback for the promoter, as reported by BehindMLM. Weeks, who pled guilty in November 2020 to conspiracy to offer unregistered securities and tax evasion, has filed over 45 motions and letters since February 2025, seeking to reverse his plea. The court’s 24-page order systematically dismantled his arguments, citing a lack of credible evidence for innocence and affirming the validity of his original testimony. This ruling renders most of Weeks’ pending motions moot, paving the way for sentencing.
Weeks claimed innocence on grounds including that Bitcoin and mining equipment aren’t securities, lack of notice for illegal activities, absence of victims, BitClub Network as a private membership association outside government jurisdiction, and non-resident status during tax evasion. The court rejected these, noting BitClub shares qualify as securities under the Howey Test, with prior cases confirming Bitcoin-mining investments as such. Weeks’ plea colloquy showed he knew his actions were illegal, and his sovereign citizen claims lacked legal basis. The judge emphasized that Weeks’ sworn admissions contradict his current assertions.
The denial reinforces the DOJ‘s case against BitClub Network, which defrauded investors of $722 million from 2014 to 2019. Weeks’ repeated violations, including a positive cocaine test and unauthorized movements under home incarceration, led the DOJ to seek bail revocation. His wife, Dasha Weeks, faces scrutiny for failing as a third-party custodian. For victims, the ruling advances toward restitution, with the court ordering a joint letter on outstanding issues by October 31, 2025. X posts from @CryptoLawyerz suggest this could deter similar MLM crypto schemes, per CoinDesk.
Sentencing proceedings for Weeks inch closer, potentially leading to prison time and asset forfeiture. The case highlights risks in unregulated crypto investments, echoing warnings like those for Cryptex from BaFin. Investors should monitor support levels at $0.50 for related altcoins and follow credible sources like The Block for updates. With SEC scrutiny on MLM schemes, similar cases may arise. Diversify portfolios and consult advisors to mitigate volatility in this evolving landscape.
