While we await news regarding this case we continue to publish parts of the indictment. 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:
VIII. In or around February 2015, GOETTSCHE directed BALACI to manipulate and falsely increase the “mining earnings” figures displayed to investors on theft BCN online accounts:
GOETTSCHE: I bump up the daily mining earnings starting today by 60%
BALACI: 60%? Wow that is not sustainable, that is ponzi territory and fast cashout ponzi but sure
GOETTCHE: yea they have not been bumped in a long time
GOETTSCHE: we can push them back down, but we need a boost
BALACI: you do realize you need to pay for like 1000 days technically?
GOETTSCHE we will dilute over time members will think its due to strong growth but right now the payout does not even break people even after 1.000 days we need to look like we will break them even in 9-12 months and then start to curtail it from there just bump it by 60%. Im putting together an update about newly installed equipment and that we will be showing mining proof in the next week
IX. In or around August 2015, BALACI told GOTTSCHE, “I noticed you drastically decreased mining payments and people started complaining .1” GOETTSCHE agreed, “yea.”
x. From at least as early as in or around August 2015 through in or around November 2019, BCN falsely claimed on its website that “Our pool was established in October 2014 as a solo mining pool that was exclusive to BitClub Network members,” when, in fact, BCN lacked a mining pool exclusive to its members in October 2014.
XI. In or around December 2015, WEEKS messaged MEDLIN and another individual about BCN and stated:
„ We really should have sep stats and oct stats and nov stats. The sophisticated investors with a lot of cash are hesitant with putting in big cash because they want to see the mining contract, the receipt or title to the mining equipments, proof that they own something in return, how much the mine made and what the mine paid out to each share holder so they can calculate what a share is worth etc. Bitclub pool doesn’t tell us how many share holders we have etc. Its not transparent enough for the big big money guys”…
To be continued.
Attorney at Law