Bitclub Newsletter No. 144
Dear Clients,
1. Brief Overview of the Case
BitClub Network (BCN) was a fraudulent investment scheme that claimed to invest in cryptocurrency mining but defrauded tens of thousands of people worldwide between 2014 and 2019. The main organizers falsely reported profits, manipulated internal data, and used a pyramid scheme structure to encourage new investments. The total estimated damage exceeds 722 million USD.
- Defendants and Case Status (May 2025)
|
Defendant Name |
Role in the Fraud |
Case Status |
Notes |
|
Matthew Brent Goettsche |
Founder, lead defendant |
In custody, awaiting trial |
Denied guilt, trial expected to be scheduled late 2025 |
|
Jobadiah Sinclair Weeks |
Co-founder and promoter |
Status hearing held on May 8 |
No plea deal reached, negotiations expected to continue |
|
Joseph Frank Abel |
Promoter and investor recruiter |
Pleaded guilty, awaiting sentencing |
Cooperating with prosecution |
|
Silviu Catalin Balaci |
System programmer |
Pleaded guilty, awaiting sentencing |
Extradited, key technical witness |
- Expected Case Developments and Timeline
|
Period |
Expected Events |
Notes |
|
May 2025 |
Status hearing in Weeks’ case |
Held on May 8 |
|
Summer 2025 |
Possible plea deals or trial scheduling |
Especially for Weeks and Goettsche |
|
Late 2025/2026 |
Start of trials if no deals are reached |
Trials may last several months |
|
2026 |
Verdicts and sentencing |
Depends on trial developments |
|
2026–2027 |
Asset forfeiture and victim compensation process |
In cooperation with the U.S. Department of Justice |
- Asset Seizure and Compensation Prospects
- Seizure: U.S. authorities have seized multiple digital wallets, cryptocurrencies, servers, and personal property of the accused. Some assets are already under government control.
- Victim Compensation: The U.S. Department of Justice is expected to establish a compensation fund once proceedings conclude. Payouts to victims may begin during 2026 or 2027, depending on the available assets and duration of legal processes.
- Compensation Outlook: Partial or full compensation is possible. The amount will depend on:
- the amount of identified and legally available assets,
- the number of recognized victims,
- the ratio between invested funds and the total available pool.
- Conclusion and Recommendations
The case against the BitClub Network organizers is entering its final phase. Two defendants have pleaded guilty and are cooperating with prosecutors. Trials for Goettsche and Weeks are expected, with verdicts and possible compensation to follow.
We recommend all affected individuals:
- keep all relevant payment documentation,
- be prepared to submit additional statements and documents upon their attorney’s request.
Zoran Miljakovic
Attorney at Law