BitClub Network operators accused of large-scale scam
According to investigations since 2014 they started to report false profits to investors while carrying out theft
Prosecutors of a US Court accused promoters of the BitClub Network company for a large-scale millionaire scam, recovering around USD $ 722 million from investors.
According to information published by several news portals, executives Matthew Goettsche, Jobadiah Weeks and Joseph Abel intended to operate a bitcoin mining group for which they sold packages among investors, making them believe that they would have shares that would derive profits.
According to the investigations carried out by the respective authorities, since 2014 the group of operators took funds and reported false profits to the investors, using the capital of the new users to pay the people who were older.
Despite what happened, the BitClub website is still active, although the portal highlights the following: “Bitclub Network no longer offers any product or service to people or organizations based in the US. o Philippines… because these countries are not bitcoin friendly. We are focusing on taking these opportunities in the rest of the world.”
What seems clear is that the pyramid scheme will continue to operate in other countries, so the authorities invite people to be vigilant and avoid being victims of scams because the modus operandi is the same, despite to have different names.
K.Villarroel
Source: dailybitcoin
