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DOJ seeks to dismiss charges in alleged $722M BitClub fraud case
If the dismissal is granted, it would reverse a trial that was scheduled for October over wire fraud and unregistered securities claims.
The US Department of Justice is reportedly moving to drop charges against Matthew Goettsche, the founder of BitClub Network, in an alleged $722 million crypto fraud case, according to Cointelegraph citing Bloomberg Law. The report says Goettsche had been set for trial in October on allegations including conspiracy to commit wire fraud and selling unregistered securities.
Cointelegraph reports that a filing was tied to an instruction from the deputy attorney general’s office in Washington to dismiss the case with prejudice through the New Jersey attorney general’s office. The matter followed Goettsche’s indictment in December 2019 and would represent a notable shift in US crypto enforcement history, the report notes.
The outlet also points to prior developments in the scheme, saying three former colleagues, Silviu Balaci, Joseph Abel, and Gordon Beckstead, have pleaded guilty. It adds that BitClub operated from April 2014 to December 2019, presenting itself as a Bitcoin mining pool where investors could buy shares and earn passive returns.
Cointelegraph further says the government alleged BitClub falsified earnings figures and fabricated mining data to attract additional investors. The report also references a DOJ effort earlier in 2026, describing that it froze more than $700 million in crypto tied to investment scammers targeting Americans.
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