Bitclub Newsletter No. 177
Dear Clients,
In the BitClub Network case, two significant procedural developments have occurred that further clarify the direction of the proceedings in relation to different defendants.
- Court Again Denies Jobadiah Sinclair Weeks’ Motion to Withdraw Guilty Plea
In early February 2026, the Court once again denied defendant Jobadiah Sinclair Weeks’ motion to withdraw his guilty plea, which he entered in November 2020, admitting to conspiracy to offer and sell unregistered securities and tax evasion.
As previously noted, throughout 2025 Weeks submitted numerous motions and filings, including multiple attempts to challenge his guilty plea. The Court had already denied twenty-four of his motions, including the original request to withdraw his plea, after which the defendant sought reconsideration.
In a detailed opinion, the Court systematically rejected all of the defendant’s arguments. It emphasized that withdrawing a guilty plea requires a credible showing of innocence supported by a factual record, which was not established in this case.
Among other things, the Court rejected claims that:
- Bitcoin and mining equipment are not securities, clarifying that the charges concerned the promotion and sale of shares in mining pools, which qualify as securities under the Howey test;
- the defendant was unaware that his conduct was unlawful, given that he had previously confirmed under oath that he knew his actions were illegal;
- there were no victims, noting that liability for offering unregistered securities does not require proof of specific harm;
- the Court lacks jurisdiction or that the entity operated as a “private organization” beyond the reach of the law;
- no tax obligation existed because he was allegedly living abroad, despite having previously confirmed under oath his status and tax obligations.
The Court also dismissed allegations of coercion, corruption, selective prosecution, and procedural violations, finding that they were unsupported by evidence and did not constitute a legally sufficient basis to withdraw the plea.
Accordingly, the motion to withdraw the guilty plea was denied, and most of the defendant’s other filings were rendered moot.
This development means that the proceedings in relation to this defendant are now moving toward the sentencing phase. The Court has directed the parties to submit a joint letter addressing any remaining issues prior to sentencing.
As previously reported, in a separate procedural matter, on February 24, 2026, the Court also denied Weeks’ motion to modify the conditions of his release, leaving the existing release conditions in place.
- Breakdown of Plea Negotiations – Matthew Goettsche to Proceed to Trial
At the same time, with respect to co-defendant Matthew Goettsche, formal plea negotiations with the U.S. Department of Justice have broken down after several years of discussions.
According to a filing submitted by the Department of Justice in early February 2026, negotiations had continued from 2019 through December 2025, at which point it became clear that a negotiated resolution was no longer possible.
As a result, both parties have requested that the Court schedule a trial.
The defense has proposed a June 2026 trial date, while the Government has taken the position that, given the complexity of the case and the scope of pretrial proceedings — including extensive discovery, motion practice, and trial preparation — a November 2026 date would be more realistic.
A final trial date has not yet been set.
Kind regards,
Attorney Zoran Miljaković