The United States Department of Justice (DOJ) intends to drop the charges against Matthew Goettsche, identified as the creator of BitClub Network, a cryptocurrency mining operation that was at the center of an alleged Ponzi scheme of approximately US$ 722 million. The information indicates a possible change in the course of one of the best-known fraud cases involving cryptocurrencies in the U.S.
According to people familiar with the process, the office of the deputy attorney general in Washington recently determined that the U.S. Attorney’s Office for New Jersey dismiss the case with prejudice. The final details of the decision are still being defined before the court is officially informed by the parties involved.
The charges against Goettsche were filed in 2019 and were close to reaching the trial phase. If the decision is formalized, the case will be definitively closed, preventing the same charges from being brought again.
Goettsche is identified by authorities as the main person responsible for creating BitClub Network, a company that promised returns through cryptocurrency mining operations. For several years, investors from different countries joined the project believing they would receive profits from the mining activity.
While the case against Goettsche remained ongoing, others involved in the case chose to admit participation in the scheme. In 2020, Joseph Frank Abel pleaded guilty for his involvement in the operation, acknowledging that he had offered and sold unregistered securities related to the fraud case.
The possible withdrawal of the charges also draws attention because of the group of lawyers who came to represent Goettsche. Among them is Bradford Cohen, a lawyer and former participant in the program "The Apprentice," as well as Brett Tolman, a conservative lawyer known for working on requests for presidential pardons granted by the current president of the United States, Donald Trump.
According to reports, both participated in efforts to persuade the Department of Justice to end the case.
"Accused of conspiracy to commit wire fraud and sell unregistered securities, Goettsche assembled a team of lawyers with connections to the Trump administration to pressure the Department of Justice in search of relief."
Despite the possible withdrawal of the criminal action, documents previously submitted to the court remain part of the case record. In one of them, Goettsche reportedly described how the business model worked, stating that it was built "on the backs of idiots."
The BitClub Network case became one of the best-known investigations involving cryptocurrencies in the United States, both because of the estimated value of the fraud and the long period of judicial proceedings. The eventual decision by the Department of Justice could officially end a dispute that began nearly seven years ago, even after other participants in the scheme had already admitted guilt before the U.S. justice system.