Bitclub Newsletter No. 123

Dear Client,

BitClub Network was an investment platform that promised high returns from cryptocurrency mining but turned out to be a large-scale Ponzi scheme. It deceived thousands of investors globally, convincing them to invest substantial sums under the guise of profits from mining Bitcoin. In reality, much of the funds collected were used to pay earlier investors, a hallmark of a Ponzi scheme.

The U.S. Department of Justice (DOJ) has pursued legal actions against the individuals behind BitClub Network, who are facing charges related to wire fraud, conspiracy, and money laundering. Several key figures have been arrested, including Joby Weeks, one of the primary promoters of the network.

Court Proceedings and Sentencing

Several key individuals involved in BitClub Network are now awaiting sentencing after pleading guilty. Notably:

• Joby Weeks, sentencing originally scheduled for November 2024, but postponed to June 2^nd 2025. He played a significant role in promoting the fraudulent scheme and is expected to face a lengthy prison sentence. The specific reasons for postponement  have not been publicly disclosed.
• Silviu Balaci, another significant figure in the scheme, his sentencing is postponed again to February 20^th 2025. The specific reasons for postponement have not been publicly disclosed.

The court proceedings have been complex due to the scale of the fraud and the number of victims involved. The case continues to unfold, with some victims hopeful that compensation will be distributed once assets are liquidated.

Victims’ Compensation and Seized Assets

One of the primary concerns for victims of the BitClub Network fraud is how they will be compensated. In cases like these, compensation often comes from the sale of seized assets. For the BitClub case, there are discussions about the liquidation of:

• Real estate properties owned by the perpetrators.
• Bank accounts that are in dispute but generally not contested in fraud cases of this magnitude.
• Cryptocurrency, specifically Bitcoin, which was part of the assets seized by authorities.

There is some uncertainty regarding how the seized Bitcoin will be valued. This is because the value of Bitcoin has fluctuated dramatically since the initial crimes were committed. The court will likely rely on financial experts to determine whether the Bitcoin will be compensated at its 2019 value (when the fraud was at its peak) or based on current market rates.

Ongoing Legal Actions

In addition to the sentencing of the main defendants, further legal actions are still being taken to identify other individuals who may have been involved in the scheme. The authorities continue to investigate potential co-conspirators and third-party facilitators who may have played a role in enabling the fraud.

While the financial restitution process remains slow, there is hope among the victims that they will eventually receive compensation for their losses. The case serves as a reminder of the risks associated with investing in unregulated schemes, particularly those promising high returns with little transparency.

For those affected by the BitClub Network fraud, it’s crucial to stay updated on legal developments and to work with legal professionals to understand the process for compensation.

Further Updates will be provided as the case progresses, including any new court rulings, victim compensation distribution, and additional arrests or charges related to the scheme.

If you have specific questions or need further information, please feel free to reach out.

Kind regards,

Attorney Zoran Miljaković