1 of 5 Scammers Pleads Guilty to a $722M Bitcoin Ponzi Scheme

An accomplice of a five-man has pleaded guilty. 

Silviu Catalin Bacali, one of the five men accused of pulling a long con, pleaded guilty to the charges against him on Thursday, July 9. According to a Justice Department , Bacali was charged with one count of “conspiracy to commit wire fraud.” The fraudulent act involved the selling of unregistered securities under the company BitClub Network (BCN).

Bacali is a 35-year-old Romanian crypto programmer. His four other accomplices are Joseph Frank Abel, Matthew Brent Goettsche, Russ Albert Medlin, and Jobadiah Sinclair Weeks. In December 2019, after a long investigation, authorities arrested the BCN team. 

Bacali’s charges carry a maximum prison time of five years. He is also required to pay a $250,000 fine.

According to the court document, the Ponzi scheme began in April 2014 and ran until their arrest in December. The plan was to sell a fictitious Bitcoin mining pool to investors, promising high returns. In the five years of running the scheme, the co-conspirators got over $722 million from unsuspecting investors.

In 2016, 99Bitcoins, a crypto news outlet, that BCN may be a scam based on its analysis. In 2017, other members from the crypto community began making .

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