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DOJ seeks dismissal of $722M BitClub case before October trial
Prosecutors are aiming for a dismissal with prejudice tied to an agreement in principle, but the terms governing any victim recovery remain undisclosed.
The U.S. Justice Department plans to end its criminal case against Matthew Goettsche, an alleged associate in the BitClub Network fraud scheme, ahead of an October trial, according to CryptoSlate, citing information from Bloomberg Law.
Bloomberg Law, as cited by CryptoSlate, said the deputy attorney general's office instructed prosecutors in New Jersey to seek a dismissal with prejudice. Goettsche's lawyers also told the court on July 8 that the parties had reached an agreement in principle but needed more time to finalize the terms, which have not yet been formally presented to the court.
Prosecutors allege the scheme, marketed as crypto-mining pools, obtained at least $722 million from investors between 2014 and 2019. The government accused the operation of using false or misleading mining-earnings figures and rewarding recruitment of new investors, while the specific status of dismissal filings and any forfeiture or restitution calculations have not been made public.
CryptoSlate also notes that DOJ directed alleged victims to complete an FBI questionnaire, but left unclear how any distribution or award process would work. A DOJ spokesperson, as reported by Bloomberg Law, said the government is recovering a substantial amount owed to investors, and a potential court outcome could clarify whether forfeiture or restitution, or separate civil claims, remain in play.