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The U.S. Department of Justice plans to drop BitClub founder’s $722 million crypto fraud charges
Golden Finance reports that on July 11, the U.S. Department of Justice is considering dropping criminal charges against BitClub founder Matthew Goettsche. The project is allegedly operated as a crypto mining scam and is accused of defrauding investors of about $722 million between 2014 and 2019. Court documents show that Matthew Goettsche’s lawyer has sent a letter to U.S. District Court Judge Claire Cecchi of the District of New Jersey. The two sides have, in principle, reached an agreement to dismiss the case, but time is still needed to finalize the specific terms.
Matthew Goettsche was indicted in December 2019, and the trial was originally scheduled for October this year. The charges include conspiracy to commit wire fraud and selling unregistered securities. If the charges are ultimately dropped, it could become one of the more significant shifts in U.S. crypto regulatory enforcement history.