DOJ charges 3 men in $722M crypto mining Ponzi scheme
December 10, 2019, 5:37PM EST
1 min read
They thought they were going to retire "RAF" or "rich as f*ck." Maybe they would have if they got away with it.
On Tuesday, U.S. prosecutors arrested 3 men associated with an alleged $722 million cryptocurrency Ponzi scheme. As per Bloomberg News, the so-called BitClub Network, pooled money from investors with the promise that it would be invested in cryptocurrency mining operations. A Department of Justice press release said Matthew Brent Goettsche, Jobadiah Sinclair Weeks, and Joseph Frank Abel were charged with crimes including conspiracy to commit wire fraud and sell unregistered securities.
“The indictment describes the defendants’ use of the complex world of cryptocurrency to take advantage of unsuspecting investors,” U.S. Attorney Craig Carpenito said. “What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars. Working with our law enforcement partners here and across the country, we will ensure that these scammers are held to account for their crimes.”
According to the Bloomberg report, Goettsche called would-be investors in the scheme "sheep" and "dumb," noting they would be able to "retire RAF!!" because of them, according to prosecutors.