Romanian Man Alleged in $722m BitClub Ponzi Scheme Pleads Guilty

A Romanian man called Silviu Catalin Balaci pleaded guilty to a US District Court through a videoconference about BitClub Ponzi scheme.

10 July, 2020 | AtoZ Markets – Balaci and four others accused in December for BitClub Ponzi scheme. Other names are Russ Albert Medlin, Joseph Frank Abel, Matthew Brent Goettsche and Jobadiah Sinclair Weeks. They pooled funds from investors with the promise of investing in cryptocurrency mining operations. Instead, they reported fake profits and tricked investors. US Attorney Craig Carpentino said:

“The indictment describes the defendants’ use of the complex world of cryptocurrency to take advantage of unsuspecting investors. What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme. It 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 held to account for their crimes.”

Romanian Programmer Admits his role in BitClub Ponzi scheme 

Silviu Catalin Balaci was arrested in Germany. He also pleaded guilty yesterday for attempting to sell unregistered securities in connection with his role in the BitClub crypto Ponzi scheme. Moreover, he faces up to five years in prison and a fine of $ 250,000, or double the profit for the accused or loss for the victims.

Nevertheless, he was in charge of changing numbers to mislead investors. He also confirms that the Ponzi scheme defrauded investors of at least $722 million worth of BTC. The court documents read:

“From April 2014 through December 2019, the BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools. It rewarded investors for recruiting new investors into the scheme. Balaci also assisted Goettsche and Medlin in creating and operating the BitClub Network. He served as a programmer for the BitClub Network.”

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