US arrests three in alleged USD 722 mn cryptocurrency fraud


PTI, Dec 11, 2019, 10:32 AM IST

New York: US authorities arrested three men in an alleged fraud that raised USD 722 million from investors lured by fake bitcoin mining earnings, the Justice Department announced Tuesday.

 

Prosecutors described the scam as a “high-tech Ponzi scheme” run by the “BitClub Network,” which took money from investors and rewarded them for recruiting new shareholders.

 

From April 2014 through December 2019 the group attracted unsuspecting investors using fraudulent earnings purported to come from the network’s mining pool, according to the statement.

 

The scheme was orchestrated from Passaic, New Jersey and constituted a “worldwide fraudulent scheme,” according to an indictment signed by US Attorney Craig Carpenito of New Jersey.

 

In messages with his co-conspirators, defendant Matthew Brent Goettsche referred to investors as “dumb” and said he was “building the whole model on the backs of idiots” as he directed others to manipulate the figures, the Justice Department said.

 

Defendants “are accused of deploying elaborate tactics to lure thousands of victims with promises of large returns on their investments in a bitcoin mining pool,” said Paul Delacourt, assistant director with the FBI’s Los Angeles office.

 

“The defendants allegedly made hundreds of millions of dollars by continuing to recruit new investors over several years while spending victims’ money lavishly.”

 

The Justice Department charged Goettsche and Jobadiah Sinclair Weeks, both of Colorado, with conspiracy to commit wire fraud.

 

The two men were also charged with conspiracy to offer and sell unregistered securities, along with the third defendant, Joseph Frank Abel of California.

 

Justice Department officials said two other defendants remained at large and their identities are being withheld.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Cow smuggler dead, six others injured after their vehicle overturns during police chase

Assam bypolls: Samaguri Cong candidate alleges rigging by BJP, demands repolling

Who in Congress has said Article 370 will be restored? Shah spreading lies: Kharge

All arrangements in place to ensure smooth darshan at Sabarimala shrine: Kerala police

Delhi pollution: Mothers’ group write to health minister, highlight respiratory issues among kids

Union Minister Joshi hands over 10 battery-operated vehicles to Puri temple

COVID-19 scam: Karnataka cabinet decides to set up SIT

Related Articles More

If data doesn’t suit them, they’ll change it altogether: Cong’s swipe at govt over Goyal’s remarks

Sensex drops 110pts, Nifty falls for 6th day on FII selling, inflationary concerns

USD 1 trillion a year needed for developing nations by 2030: High-Level Group on Climate Finance

FSSAI directs online platforms to deliver food items with minimum 45 day shelf life

Retail inflation rises to 6.21 pc in Sep amid higher food prices

MUST WATCH

New Technology In Kambala

Lakshdeepotsava 2024 Shree Krishna Mutt

Punganur Cow

Rangoli design

Jagadeesh Nagaraj Kudupali Audio Viral


Latest Additions

Cow smuggler dead, six others injured after their vehicle overturns during police chase

Assam bypolls: Samaguri Cong candidate alleges rigging by BJP, demands repolling

Who in Congress has said Article 370 will be restored? Shah spreading lies: Kharge

All arrangements in place to ensure smooth darshan at Sabarimala shrine: Kerala police

Delhi pollution: Mothers’ group write to health minister, highlight respiratory issues among kids

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.