Bitcoin

BitClub Network Founders Are Charged in $722 Million Cryptocurrency Ponzi Scheme

The creators of BitClub Network website were charged with helping to run $722 million cryptocurrency fraud that amounted to a “high-tech Ponzi scheme,” U.S. Attorney Craig Carpenito in New Jersey said in a statement.

The BitClub Network claimed that users can earn daily profits from a so called shared mining pools. The website owners have created a referral program so they can trick more users to join their Ponzi scheme.

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.

U.S. Attorney Carpenito said
A screenshot from Bitclub’s website

From its inception in 2014, BitClub Network was never about sharing crypto mining profits. The alleged scammers created false figures meant to demonstrate BitClub’s earnings from its bitcoin mining pool to its investors between April 2014 and December 2019.

The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison, and a fine of up to $250,000. The conspiracy to sell unregistered securities charge carries a maximum penalty of five years in prison and a fine up to $250,000.    

June G. Bauer

Pop cultureaholic, Technology expert, Web fanatic and a Social media geek. If you have any questions or comments please feel free to email her at june@thecoinspost.com or contact her on Twitter @JuneTBauer1

Recent Posts

Craig Wright’s “Satoshi Nakamoto” Claim Debunked in UK Court Ruling

The mysterious identity of Satoshi Nakamoto, the inventor of Bitcoin, has been burning question… Read More

1 week ago

P2P NFT Trading Platform Faces Breach: Users Urged to Take Immediate Action

NFT Trader, peer-to-peer (P2P) trading platform, recently experienced a security breach leading to the… Read More

3 months ago

Fireblocks buys Australian blockchain start-up BlockFold

Fireblocks, the crypto company backed by Sequoia Capital and Coatue Management, has acquired BlockFold, a… Read More

6 months ago

Former IcomTech CEO Admits Guilt in Cryptocurrency Ponzi Scheme

In recent development, Marco Ochoa, the former CEO of IcomTech, has pleaded guilty to… Read More

6 months ago

Binance Announces Complete Exit from Russia, Selling Business to CommEX

In significant development for the cryptocurrency world, Binance, one of the leading global cryptocurrency… Read More

6 months ago

Robert Kiyosaki’s Bold Prediction: Citibank Tokens vs. Bitcoin and the US Dollar

In recent tweet that sent shockwaves through the cryptocurrency community, renowned author and financial… Read More

6 months ago