The following text is part of the indictment against the accused. It illustrates how irresponsible individuals abuse people’s trust and carefully devise fraudulent projects. This results in even highly educated individuals in the field of Crypto becoming victims of cunning fraudsters.
Quoting parts of the indictment:
V. In or around January 2015, GOETI’SCHE and BALACI discussed the need to show investors proof of mining power to promote investment in BCN. GOETTSCHE offered BALACI $50,000 to devise a way for BCN to show purported “proof’ of a BCN pool without BCN actually having mining power:
GOETTSCHE: got a challenge for you $50k bonus to get us “proof’ of our own pool by end of month
BALACI: “proof’ ? as in without you having mining power? And with you riding me hard about
GOETTSCHE: having our own node, yep, its a big one 111 put together full details to make it achievable
GOETTSCHE: but that will instantly net us lOx that
BALACI: so you want our own pool
GOETTSCHE: yes, dude
BALACI: and then we get miners to mine there?
GOETTSCHE: most of these idiots
GOETTSCHE: have no idea
BALACI: by the end of the month…
GOETTSCHE: they lust want to make sure we can verify SOMETHING
BALACI: 50k bonus, deal
GOETTSCHE: that is the #1 question, are you really mining?
BALACI: well, having a pool is 1 thing…. showing mining power is a totally different anima. I can get you
the pool! We can then offer 5% mining bonus to miners, that will get us power
GOETTSCHE: with a pool, we can get miners to join
BALACI: then we can divert some of that
VI. In or around January 2015, GOETTSCHE told BALACI, “we are building this whole model on the backs of idiots” and to “prove the mining. . . just means convincing the morons 0.”
VII. In or around January 2015, GOETTSCHE and BALACI discussed developing fake “proof’ and “statistics” to display to potential BCN investors to promote investment in BCN:
GOETTSCHE: how can we get some shiny shit for members? oh also need to bump up the payout its
BALACI: what shiny shit you want exactly? ok
GOETTSCHE: the stats you just showed me
BALACI: fake a pool or?
GOETTSCHE: yea, real stats on fake numbers, we will slowly introduce real numbers
BALACI: BALACI uhmmm ok, but to make it believable will not be easy cause we need to code variance
in SALAd will try to get something up
GOETTSCHE: Im telling you man some stats like this a picture with our banners and some proof in the blockchain and look the fuck out!! Its over
To be continued…
Attorney at Law