One in Five Fraudsters Plead Guilty to $722 Million Bitcoin-Ponzi Scheme
Login

One in Five Fraudsters Plead Guilty to $722 Million Bitcoin-Ponzi Scheme

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

An associate of the Ponzi crypto scheme with five men for $722 million pleaded guilty.

Silviu Catalin Bacali, one of five people accused of pulling a long crook, pleaded guilty to the charges against him on Thursday, July 9.

According to a court document of the Ministry of Justice, Bacali was charged with one charge of “conspiracy to commit electronic fraud.”. The fraudulent act involves the sale of unregistered securities as part of the BitClub Network (BCN) company.

Bakali is a 35-year-old Romanian cryptography programmer. Joseph Frank Abel, Matthew Brent Getchet, Russ Albert Medlin, and Jobadia Sinclair Weeks are his four other accomplices. In December 2019, authorities detained the BCN team following a lengthy investigation.

The charges against Bakali include a maximum term of five years in jail. He’s also expected to pay $250,000 in fine.
The Ponzi scheme started in April 2014, and continued until their arrest in December, according to the court record. The idea was to sell to investors the dummy bitcoin mining pool, which offered high returns. Partners have received more than $722 million from unsuspecting investors over the five years of the scheme.

In 2016, cryptographic news at 99Bitcoins warned that BCN could be a scam based on its analysis. Other members of the crypto-community started making similar assumptions in 2017.

Crypto Fraud Update
In March 2017, reports that BitClub had conducted a malleability attack on the Bitcoin network were published in the press. As early as 2016, crypto-media news outlet 99Bitcoins had already flagged the scheme as a suspect.

Meanwhile, if they are keen to find more detail, the U.S. government is asking victims of the Ponzi scheme to visit its website.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News