Bitclub Newsletter No. 93

Dear Clients,

While we await new information about the case let me clarify this:

Joby Weeks has been released on bail of 2 million dollars, signed by his parents, but he is under permanent house arrest and GPS surveillance. He pleaded guilty, meaning he admits guilt to the charges against him. On the other hand, the DOJ continues to investigate Goettsche’s finances. Goettsche has rejected the plea deal, so he will face trial and a possible lengthy sentence.

Let me remind you how Joby Weeks deceived his victims.

Weeks emerged as the most visible spokesperson for BitClub Network, a venture that promised to make the rarefied world of cryptocurrency available to the masses. For a $100 membership fee and an investment as low as $500, BCN clients could purchase a share in a Bitcoin mining pool; the money was supposed to go toward acquiring and operating stacks of high-speed computing equipment to be used in carving out new blocks of transactions in the Bitcoin blockchain. “Miners” who solve the complex computational problems involved in that process are rewarded with newly issued Bitcoin. Weeks likened the BCN pool to “buying the goose that lays the golden egg,” rather than simply purchasing a few golden eggs’ worth of bitcoins.

“We’re basically selling machines that print money,” he told one audience in 2017. “Whatever the data center generates each day is paid out to our investors in a daily dividend. … We’re paying these people in Bitcoin every single day.”

The pitch was a tempting one, particularly at the peak of the Bitcoin frenzy at the time. Machines that print money! Fractions of bitcoins trickling into your account every day, financing your own cargo-short sorties to the Bahamas, the Seychelles, or some other Joby-like place…. It was a fine daydream, and more than a few of Weeks’s spellbound listeners bought into it.

Zoran Miljakovic
Attorney at Law