DOJ reportedly plans to dismiss the BitClub crypto fraud case. The alleged scheme involved about $722 million in investor funds. Officials say victim fund recovery efforts will continue. BitC
BitClub Crypto Fraud case is taking an unexpected turn after reports that the U.S. Department of Justice plans to dismiss charges against Matthew Goettsche, the alleged founder of the $722 million crypto mining scheme.
JUST IN: Trump DOJ to drop charges against the mastermind of $722,000,000 crypto Ponzi scheme, Bloomberg reports.
— Watcher.Guru (@WatcherGuru) July 11, 2026
Bloomberg reported that prosecutors were instructed to seek dismissal with prejudice, although final terms are still under discussion. The decision would reverse a high-profile prosecution that began with a 2019 indictment.
According to Bloomberg, the deputy attorney general’s office directed federal prosecutors in New Jersey to dismiss the BitClub Crypto Fraud case. Goettsche had faced conspiracy to commit wire fraud and unregistered securities charges tied to the BitClub Network, which prosecutors described as a crypto Ponzi scheme that rewarded investors for recruiting new participants.
Three co-defendants previously pleaded guilty, including Joseph Frank Abel, who admitted to selling unregistered securities connected to the operation. Court filings also alleged Goettsche once described the business model as being built “on the backs of idiots.”
Bloomberg reported that Goettsche hired attorneys with connections to President Donald Trump’s circle to seek relief from the Justice Department. However, DOJ spokesperson Emily Covington said the decision was unrelated to lobbying efforts. She stated the department regularly reviews long-running cases and remains focused on recovering funds for victims.
The BitClub Crypto Fraud prosecution had been scheduled for trial in October after years of discovery and settlement discussions. Prosecutors previously argued a jury trial was necessary because the alleged scheme falsely promised cryptocurrency mining returns while collecting hundreds of millions of dollars from investors worldwide.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.<p>The post DOJ Drops 722 Million Crypto Ponzi Case Against BitClub Founder first appeared on Coin Crypto Newz.</p>
