BitClub Network creators arrested, DOJ alleges $722M Ponzi

The DOJ has gone after five individuals connected to BitClub Network.

Matthew Brent Goettsche, 37, of Lafayette, Colorado, and Jobadiah Sinclair Weeks, 38, of Arvada, Colorado, are charged by indictment with conspiracy to commit wire fraud and Goettsche, Weeks, and Joseph Frank Abel, 49, of Camarillo, California, are charged by indictment with conspiracy to offer and sell unregistered securities.

Goettsche, Weeks and Abel have been arrested. Two co-conspirators, whose names are under seal, remain at large.

The DOJ cites Matthew Brent Goettsche as a co-creator of BitClub Network.

Jobadiah Weeks and Joseph Abel are cited as BitClub Network promoters.

I can’t speak to the others, but barely a week ago we reported Abel was still actively scamming victims through
Dunamis Mining
 and
Onyx Lifestyle
.

A sealed defendant is also credited as a co-creator. The other is a co-creator and also worked as BitClub Network’s programmer.

As per
Goettsche, Weeks and Abel’s indictment
, BitClub Network was a $722 million dollar Ponzi scheme.

As
reported back in 2014 here on BehindMLM
, BitClub Network’s Ponzi ruse was bitcoin mining.

From its inception in 2014, BitClub Network was never about sharing crypto mining profits.

It was the goal of the conspiracy for the GOETTSCHE, (sealed), WEEKS, (sealed) and others (the “Fraud Co-Conspirators”) to enrich themselves by soliciting and causing others to solicit investments in BCN through materially false and fraudulent pretenses, representations, promises, and omissions.

GOETTSCHE, (sealed) and others discussed and understood that
BCN’s purported cryptocurrency mining would not be profitable
, but would serve to induce investors to purchase BCN memberships and shares in BCN’s purported mining pools.

The Fraud Co-Conspirators made and caused others to make materially false and fraudulent pretenses, representations, and promises to, and to conceal material facts from, investors regarding aspects of BCN’s investment products, including the information that was displayed to BCN’s investors as proof of “bitcoin mining earnings” that purportedly were generated through BCN’s bitcoin mining pool.

Cited evidence of fraudulent intent from inception includes emails between BitClub Network’s founders.

In one such exchange, a sealed defendant gloated to Goettsche how the MLM side of BitClub Network would screw over 99% of affiliates.

The margins from the MLM [multi-level marketing] will also be insane cause I have seen your skill at constructing attractive matrixes that have almost O chance of paying more than 50% of max for 99% of the people :D.

Goettsche himself (right), stated in a 2014 online chat that
‘BitClub Network’s target audience would be “the typical dumb MLM investor”‘
.

In October 2014, two months after BehindMLM’s published review, Goettsche and a sealed defendant discussed faking mining statistics to encourage investment.

GOETTSCHE:
but we may need to fake it (mining profits) for the first 30 da

🤖 Quick Answer

Who are the individuals arrested in connection with BitClub Network?

What are the main charges against BitClub Network creators?
Defendants face charges of conspiracy to commit wire fraud and conspiracy to offer and sell unregistered securities. The DOJ alleges the scheme defrauded victims of approximately $722 million through fraudulent cryptocurrency mining operations and investment solicitations.

What is BitClub Network's alleged structure?
BitClub Network operated as a Ponzi scheme involving cryptocurrency mining operations. Members were recruited as promoters who solicited investments from victims under false pretenses regarding

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