The United States authorities in New Jersey have announced the arrest of three men who are accused of embezzling investors worth more than $722 million within the alleged BitClub Network cryptographic system, following an announcement from the Department of Justice on December 10.
According to a press release, the BitClub Network promised huge rates of return in exchange for investments in a common cryptographic currency mining pool. The parties at the center of the program allegedly appropriated more than $722 million of these funds for their generous lives, rather than for the promised mining basin.
In addition, the authorities accuse the three arrested men of falsifying returns information in order to attract more investment, as well as
The three defendants are Matthew Goettsche and Jobadiah Weeks, both from Colorado, and Joseph Abel from California. The authorities accuse the first two people of a conspiracy to commit eavesdropping fraud, punishable by up to 20 years in prison, and a conspiracy to offer and sell unregistered securities. Abel, who was apparently less involved in this programme, has only been accused of a conspiracy to offer and sell unregistered securities, with a maximum sentence of five years' imprisonment.
This is not the first sign that the BitClub may not be a full boarding operation. In 2016, the cryptographic information point 99Bitcoins warned against investing in the BitClub, despite removing the earlier label of "fraud" from the company.
