Bitclub Newsletter No. 107

Dear Clients,

There were no new updates in the past week in relation to this case. In the meantime, let us offer you a short case summary.

Defendants Goettsche, Balaci, and Weeks have been charged with conspiracy to commit wire fraud related to their involvement with BitClub Network. From April 2014 through December 2019, BitClub Network operated as a fraudulent scheme, soliciting money from investors in exchange for shares of supposed cryptocurrency mining pools and rewarding investors for recruiting new participants into the scheme. Goettsche, Balaci, Weeks, and others conspired to attract investments in BitClub Network through fraudulent means, including providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings” allegedly generated by BitClub Network’s mining pool. These individuals managed to obtain at least $722 million from BitClub Network investors.

Additionally, Goettsche, Balaci, Weeks, and Abel conspired to sell BitClub Network shares, which are considered securities, without registering the shares with the U.S. Securities and Exchange Commission. Weeks and Abel created promotional videos and traveled across the United States and internationally to promote BitClub Network and recruit investors.

Zoran Miljakovic
Attorney at Law