US authorities have arrested three people connected to a cryptocurrency mining scam for over 722 million dollars.
The three alleged scammers - Matthew Brent Goettsche, Jobadiah Sinclair Weeks, and Joseph Frank Abel – have been charged with with conspiracy to offer and sell unregistered securities and Goettsche and Weeks are also charged with conspiracy to commit wire fraud as well.
If convicted they are facing a prison sentence of 25 years and fines between 250 000 USD and 500 000 USD.
Their scheme, called BitClub Network, has existed since mid-2014. They allegedly tricked investors into believing that they were investing into shares of cryptocurrency mining pools and were paying investors for bringing in new victims.
This is yet another massive scam scheme that went unchecked by authorities for years, I wonder how many others like it exist out there, not to mention how long they must have existed already without the authorities having a clue, unfortunately.
Source
The three alleged scammers - Matthew Brent Goettsche, Jobadiah Sinclair Weeks, and Joseph Frank Abel – have been charged with with conspiracy to offer and sell unregistered securities and Goettsche and Weeks are also charged with conspiracy to commit wire fraud as well.
If convicted they are facing a prison sentence of 25 years and fines between 250 000 USD and 500 000 USD.
Their scheme, called BitClub Network, has existed since mid-2014. They allegedly tricked investors into believing that they were investing into shares of cryptocurrency mining pools and were paying investors for bringing in new victims.
This is yet another massive scam scheme that went unchecked by authorities for years, I wonder how many others like it exist out there, not to mention how long they must have existed already without the authorities having a clue, unfortunately.
Source
