The unsealed BitClub Network fraud indictments
When news of the BitClub Network arrests broke last December, we learned that the grand jury indictments behind the arrest were under seal.
And so they remained until all of the defendants were in custody.
That condition was finally satisfied last week, following Russ Medlin’s arrest in Indonesia.
With Medlin’s arrest came the unsealing of the indictments, which today we’re examining as originally filed.
The five BitClub Network indicted in the case are Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks, Joseph Frank Abel and Silviu Catalin Balaci.
The indictment alleges Goettsche, Medlin and Balaci created BitClub Network. Weeks and Abel are cited as promoters.
As per the indictment, BitClub Network
was a worldwide fraudulent scheme that solicited money from investors in exchange for shares of pooled investments in cryptocurrency mining and that rewarded existing investors for recruiting new investors.
For reference, BehindMLM reviewed BitClub Network in August 2014.
The indictment charges that Goettsche, Medlin, Weeks and Balaci were engaged in a conspiracy
to enrich themselves by soliciting and causing others to solicit investments in BCN through materially false and fraudulent pretenses, representations, promises, and omissions.
discussed and understood that BCN’s purported cryptocurrency mining would not be profitable, but would serve to induce investors to purchase BCN memberships and shares in BCN’s purported mining pools.
Puported external revenue derived from mining was “based on the materially false and fraudulent pretenses”.
Through BitClub Network, the defendants solicited “at least $722 million from investors”.
In or around July 2014, as part of an online chat exchange, BALACI told GOETTSCHE that BCN’s target audience would be “the typical dumb MLM investor.”
As the scheme unraveled, an exit-scam proposal put forth by Goettsche saw BitClub Network
- “limit sales by the house to do $50 mil per month”; and
- drop mining earning significantly starting on or around September 2017.
In his own words, this would allow Goettsche and his co-conspirators to “retire rich as fuck”.
As is most of the MLM underbelly, Russ Medlin and Joe Abel are avid readers of BehindMLM.
Cited as evidence Medlin and Abel knew they were committing securities fraud, is an article I published in March 2018.
That same month Medlin emailed the article to Abel.
All up the indictment lays two counts against the BitClub Network defendants;
- Conspiracy to commit wire fraud; and
- Conspiracy to offer and sell unregistered securities.
Forfeiture with substitute asset provision is also being sought.
Assets cited in the indictment include
- RBC Wealth Management accounts in the name of Getch Holdings, Getch Foundation and Getch Holdings LLC Construction Fund; and
- any ownership interests held by Matthew Goetttsche, Gobit LLC and Getch 2021 LLC in Orbesehc Industrial LLC and HIIT Health LLC.
At the time of publication all five BitClub Networks are in custody, either in the US or abroad.
Stay tuned for updates as we continue to track the case.
The system is called MLM. Arrested is only the Top Level so far.
What about the 2. Level? What about the 3. Level?
All these Megamonsters? Innocent?
To be continued (hopefully).
only Usa citizens will be held charged!
Other than Usa, other countries are out of the law. whether its mega monsters or marketers as no laws of crypto at all.
It’s not so much as being “out of the law” as incompetent authorities.
@Oz. Right! It is not a question of Crypto law. It is cinspiracy to defraud. Establishment of a criminal gang is an further topic.
Of cause you can do something out of US. In Europe : Have to reported:
You can also raise a civil suit!!!
All to report your upline. They are scammers like the ugly scammers in US.
Anyone report Joerg in Europe??? He is still promoting scam Jubilee ace to the downlines!
Got Scammed by Bitclub. Did not partake in dodgy mlm nonsense
And as time unfolded …. the true state of things are now revealed
Will we ever get out money back?! would be happy to provide information, please contact me.
Never loose control of your crypto!!!
If you do get anything back it’ll be at the discretion of US authorities.
Process will take 3-7 years. Not an exageration.
Yes after having scammed people out of millions with Bitclub it’s now Jubilee Ace.
Nothing changed. Always the biggest opportunity, always he will help you become a millionair and get rich.
He hasn’t done anything else since he left Forever Living Products in Germany. Of course living in Dubai, he’s out of reach for most of the police investigative services in Europe.
I was just thinking about this again so checking to see if anything has happened.
Together with a friend who had researched BitClub Network We invested $5000 but she invested a lot more.
We are in Australia and I filed a form with FBI as recommended when it all collapsed. Would love to get our money back.