Dear Clients,
Case Bitclub Summary :
Defendants Goettsche, Balaci, and Weeks have been charged with conspiracy to engage in wire fraud in connection with their roles in BitClub Network. From April 2014 through December 2019, BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Goettsche, Balaci, Weeks, and others conspired together to solicit investment in BitClub Network through fraudulent means, including by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche, Balaci, Weeks, and others obtained the equivalent of at least $722 million from BitClub Network investors.
Defendants Goettsche, Balaci, Weeks, and Abel also conspired to sell BitClub Network shares—which were securities—notwithstanding that BitClub Network did not register the shares with the U.S. Securities and Exchange Commission. Weeks and Abel created videos and traveled around the United States and the world to promote BitClub Network and recruit others to invest.
This criminal case is under the jurisdiction of the United States Attorney’s Office, District of New Jersey. When the case was initiated, it didn’t receive much public attention, leading victims to be unaware of the option to report their losses. Only a limited number of fraud victims were informed about the case being open. Victims residing outside the United States encounter challenges in participating in the proceedings due to the high costs associated with hiring US attorneys. Through our innovative approach to such cases, we have successfully facilitated damage claims for victims outside of the US. The case is currently in the sentencing phase, and the latest information indicates the next hearing is scheduled for March 2024. Reporting claims is still possible.
Zoran Miljakovic
Attorney at Law