AMSTERDAM, Netherlands, July 12 (Our Colorado Times) — Federal prosecutors plan to dismiss with prejudice the criminal case against Matthew Goettsche, the Lafayette, Colorado man accused of helping run BitClub Network, a cryptocurrency scheme the Justice Department says took in at least $722 million from investors.
The Justice Department says BitClub Network operated from April 2014 through December 2019 as a fraudulent cryptocurrency mining operation that promised returns from mining and paid investors for recruiting new investors. DOJ case records say Goettsche was charged with conspiracy to commit wire fraud and, along with others, conspiracy to offer and sell unregistered securities.
The case was brought in federal court in New Jersey after a grand jury returned a two-count indictment on Dec. 5, 2019, and the Justice Department announced arrests in the case on Dec. 10, 2019. The department identified Goettsche as being from Lafayette and said he was arrested in Colorado.
Court filings referenced in reporting show that in February prosecutors told the court a jury trial was necessary, while on July 8 Goettsche’s lawyers said they had reached an agreement in principle to resolve the pending charges.
The Justice Department case also named co-defendants Jobadiah Sinclair Weeks of Arvada, Colorado; Joseph Frank Abel of California; and Silviu Catalin Balaci.
