Bitclub Newsletter No. 100

Dear Clients,

Case Summary:

Defendants Goettsche, Balaci, and Weeks have been charged with conspiracy to engage in wire fraud in connection with their roles in BitClub Network. From April 2014 through December 2019, BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Goettsche, Balaci, Weeks, and others conspired together to solicit investment in BitClub Network through fraudulent means, including by providing false and misleading figures that BitClub investors were told were “Bitcoin mining earnings” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche, Balaci, Weeks, and others obtained the equivalent of at least $722 million from BitClub Network investors.

Defendants Goettsche, Balaci, Weeks, and Abel also conspired to sell BitClub Network shares—which were securities—notwithstanding that BitClub Network did not register the shares with the U.S. Securities and Exchange Commission. Weeks and Abel created videos and traveled around the United States and the world to promote BitClub Network and recruit others to invest.

New information about the case includes a proposed order from January 25, 2024, requesting the removal of the lien on the property that Joby Weeks used for bail and the release of his parents as third-party custodians.

The sentencing for the defendants in the BitClub Network case has been postponed, and the new dates are:

Joby Weeks: September 19, 2024
Joe Abel: September 18, 2024
Silviu Balaci: September 24, 2024

These delays are likely due to the processing of evidence in the case against Matthew Goettsche.

This is a major case with a vast amount of evidence that needs to be processed, and attorneys have the right to respond to it. We see that the prosecutors and defense attorneys are working diligently. The path to uncovering the truth and determining each participant’s responsibility is long. A significant success in this case is the discovery and freezing of the defendants’ assets. Because of this, the victims can wait for the end of the trial with less concern.

There have been no new updates regarding this case in the past week. We expect new announcements from the judicial authorities soon.

Zoran Miljakovic
Attorney at Law