Bitclub Newsletter No. 198

Dear Clients,

In our previous update, we discussed the consequences of the dismissal of the criminal case
against Matthew Goettsche and explained why that development does not, by itself, resolve the
question of potential recovery for BitClub Network victims.

As there are currently no new official developments requiring action from victims, we would like
to use this update to explain an important distinction that often causes confusion in cases
involving large-scale investment fraud:

What is the difference between assets seized by the authorities, forfeiture and restitution to
victims?

Although these concepts are connected, they do not mean the same thing.

Seizure does not mean that funds are immediately available to victims
During a criminal investigation, authorities may identify and seize or restrain assets that they
believe are connected to criminal activity.

This can prevent property from being transferred, hidden or otherwise disposed of while the
relevant proceedings are ongoing.

However, the fact that an asset has been seized does not automatically mean that it belongs to the
victims or that it can immediately be distributed to them.

Further legal proceedings may be required to determine what happens to that property.
What is forfeiture?

Forfeiture is the legal process through which property connected to criminal activity may
ultimately be taken by the Government.

Depending on the circumstances, this may include money, cryptocurrency, real estate or other
property representing proceeds of an offence or otherwise subject to forfeiture under applicable
law.

Importantly, forfeiture is primarily concerned with the legal status of the property.
It does not automatically establish how much each individual victim lost or how any available
assets should be divided among victims.

What is restitution?

Restitution concerns compensation owed to victims for losses caused by criminal conduct.

This is a separate question from whether particular assets have been seized or forfeited.

In cases involving a large number of victims, determining restitution can require establishing
who qualifies as a victim, verifying individual losses and determining the amount that can legally
be recognised.

Even where restitution is ordered, the amount ultimately recovered by victims may depend on
the assets actually available for enforcement and distribution.

Can forfeited assets ever be used to compensate victims?

Potentially, yes.

Under certain circumstances, U.S. procedures may allow forfeited assets to be applied toward
victim compensation. However, this requires an appropriate legal and administrative mechanism
and should not be assumed merely because authorities have previously seized assets connected
with a case.

This distinction is particularly important in the BitClub Network matter.

The existence of assets connected to the proceedings and the existence of victims who suffered
losses are not, by themselves, sufficient to establish that a distribution will occur or what amount
individual victims may ultimately receive.

Why does this matter now?

Following the dismissal of the case against Matthew Goettsche, attention naturally turns to the
remaining proceedings and to the question of assets connected with BitClub Network.
At present, however, there is no new official distribution process requiring action from our
clients.

For this reason, victims should be cautious if contacted by anyone claiming that BitClub
Network funds have already been released or that payment of a fee, tax or other charge is
required in order to receive restitution.

Any genuine recovery or distribution procedure should be capable of being independently
verified through the competent authorities or the relevant court proceedings.

We continue to monitor the BitClub Network proceedings, including any developments
concerning restitution, forfeiture and assets that may potentially become relevant to victims.

If an official development occurs that requires documentation, registration of a claim or any
other action from our clients, we will inform you accordingly.

Until then, no additional action is required from you.

Thank you for your continued trust.

Kind regards,
DefendMe Legal Team