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Three arrested in connection to a $722 mln crypto scam

Dec 11 2019
By
Jonathan Smith

The U.S. police have arrested three individuals in connection to a crypto mining scam that costed investors over 722 million USD.

 

According to a statement by the Justice Department all three of them - Matthew Brent Goettsche, Jobadiah Sinclair Weeks, and Joseph Frank Abel are charged with conspiracy to offer and sell unregistered securities, while Goettsche and Weeks alone are charged with conspiracy to commit wire fraud  as well. 

 

The defendants are facing fines of between 250 000 USD and 500 000 USD each and a prison sentence of up to 25 years if found guilty on all charges.

 

The scheme known as BitClub Network was operational from mid 2014 till the date of the arrests. The Investors were tricked into believing that they are investing in shares of crypto currency mining pools. And investors were also rewarded for bringing other victims onboard.

 

“The indictment describes the defendants’ use of the complex world of crypto currency to take advantage of unsuspecting investors. What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars. Working with our law enforcement partners here and across the country, we will ensure that these scammers are held to account for their crimes”, Craig Carpenito, US Attorney said.

 

“Those arrested today are accused of deploying elaborate tactics to lure thousands of victims with promises of large returns on their investments in a bitcoin mining pool, an advanced method of profiting on cryptocurrency,” Paul Delacourt, the assistant director in charge of the FBI’s Los Angeles Field Office, also commented.

TAGS: crypto mining scam  USA  arrests 
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