Silviu Catalin Balaci pleads guilty to BitClub Network fraud
BitClub Network defendant Silviu Catalin Balaci has plead guilty to one count of conspiracy to commit wire fraud and to offer and sell unregistered securities.
In Balaci’s indictment, the DOJ claim he “assisted in creating and operating BitClub Network”. He is also cited as BitClub Network’s primary programmer.
Following indictment by a grand jury, Balaci, originally from Romania, was arrested in Germany last December.
The BitClub Network case docket suggests Balaci was recently extradited to the US. He appeared before the court for an initial appearance on July 7th.
Bond was set at $500,000. Balaci had to surrender his passport and was released to a New Jersey address.
He was also ordered to have no contact with anyone related to BitClub Network (including victims).
On July 9th the DOJ filed a superseding indictment against Balaci. The same day he entered a guilty plea, admitting his role in the BitClub Network Ponzi scheme.
Sentencing has been scheduled for November 18th. As per a July 9th press-release issued by the DOJ, Balaci is facing five years in prison.
He will also be fined either $250,000, or twice what he received through BitClub Network or was lost by its victims. That figure has yet to be determined.
Until sentencing in November, Balaci will remain in New Jersey as per his bond release conditions.
Update 27th July 2020 – As per a July 21st order, Silviu Balaci has been given permission to fly to Germany.
Defendant may travel from this District to Germany, on or after July 25, 2020, and may reside there until a Court hearing or sentencing in the above-captioned action, or until directed to return to this District by Pretrial Services.
Although not officially confirmed, one would assume Balaci has been given permission to travel to Germany due to cooperation with the DOJ.
Update 30th October 2020 – As per an October 27th order, Silviu Balaci’s sentencing has been rescheduled for February 18th, 2021.
Update 6th February 2021 – On February 4th the court rescheduled Balaci’s sentencing for September 14th.
No reason for the rescheduling is provided.
Update 5th August 2021 – Silviu Balaci’s sentencing has been rescheduled again.
The new sentencing hearing date is September 20th, 2022. No reason for the rescheduling is given.
Update 22nd August 2022 – Balaci is now scheduled to be sentenced on March 16th, 2023.
Update 17th March 2023 – On March 6th, Balaci’s sentencing was rescheduled for November 16th, 2023.
No reason for the rescheduling was provided.
I missed this when it happened yesterday because my docket search was only showing me some of the filed case documents.
I’ve added what I think is the full case, so going forward I should be able to see everything going on.
will the other Megamonsters be charged soon? or just these 4.
That’s a question for the DOJ. Personally I doubt we’ll see any further arrests.
May be not in US. But wait and see what will happen in the EU.
Sadly my bet is on nothing. Their track record is dismal in cases like this. All these countries leave it up to the US to handle and use the we don’t have the manpower to deal with it mantra instead of doing their jobs.
wait and see…
Article updated with news of Balaci being given permission to travel to and stay in Germany.
He must have given the DOJ everything if they are willing to let him leave the US.
Joby “fuck the government” Weeks must be fuming lulz.
Article updated with news Balaci’s sentencing has been rescheduled for Feb 2021.
Article updated with news Balaci’s sentencing has been rescheduled for September 2021.
Article updated with new 2022 sentencing date.
As with every other scam in MLM, serial fraudster Udo Carsten Deppisch was also involved in BitClub Network:
All 7 videos on this channel:
When will this crook get arrested and charged?
My personal conclusion: Udo Carsten Deppisch has never earned any money with regular work. But as a cheater, he’s perfect!
PS: In other profiles, UCD mentions that he worked as a plumber before he became a fraudulent networker.
Article updated with new November 2023 sentencing date.