- The US Department of Justice is moving to drop charges against the BitClub founder accused in a $722 million cryptocurrency fraud case.
- The move follows Deputy Attorney General Todd Blanche’s April 2025 directive to halt a regulatory strategy based on prosecutions against the digital-asset industry.
- BitClub Network is accused of saying it would share profits from Bitcoin mining pool investments while manipulating profit figures and mining data to deceive investors.
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The US Department of Justice is moving to drop charges against a BitClub Network founder accused in a $722 million cryptocurrency fraud case.
Cointelegraph reported on July 10 that two people familiar with the matter said the Office of the Deputy Attorney General had instructed federal prosecutors in New Jersey to dismiss the indictment against BitClub founder Matthew Goettsche. In a filing submitted to US District Judge Claire Cecchi in New Jersey, Goettsche’s lawyers wrote that the two sides had reached an agreement in principle but needed more time to finalize the details.
Goettsche was indicted in December 2019 on charges including conspiracy to commit wire fraud and selling unregistered securities. He had been set to go on trial in October 2026. If the charges are dropped, the move would mark one of the most notable reversals in the history of US cryptocurrency enforcement. It would also contrast with the cases of three co-conspirators — Silviu Balaci, Joseph Abel and Gordon Bradbeck — who have already pleaded guilty.
The move follows Deputy Attorney General Todd Blanche’s April 2025 directive to halt a regulatory strategy that relied on prosecutions against the digital-asset industry.
BitClub Network was accused of soliciting investors with promises of sharing profits from Bitcoin mining pool investments, then deceiving them by manipulating profit figures and mining data.
