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Crypto Ponzi, fail miserably – Funvitor

The fact that you are fraudulently earning hundreds of millions of dollars does not mean you have to be so jerk to respect.

It is clear that

No one conveyed this message to the three men arrested today for their alleged participation in a Ponzi cryptocurrency scheme covering $ 722 million.

In a press release dated December 10 from the Department of Justice, men are accused of an effort of years to trick investors into believing that they managed a bitcoin mining group, all the time belittling anyone sufficiently stupid to believe his supposed lies.

From 2014

Matthew Brent Goettsche and Jobadiah Sinclair Weeks, both of Colorado, along with Joseph Frank Abel of California, allegedly managed BitClub Network, a service that promised to take the money from investors and allocate it to the mining cryptocurrency.

“You can buy in swimming pools for 500 dollars, 1,000 dollars or 2,000 dollars”, Explain the website.

"Each contract has a duration of 1,000 days, during which you will receive your share of the currency we extract."

The idea

At least at first glance, it was that investors would make a profit based on the bitcoin extracted by the BitClub Network. That was not exactly how it worked.

Actually

The DOJ insists that BitClub Network was not putting money from investors in mining equipment and, instead, was a big scam.

Around January 2015

The indictment notes that Goettsche told an individual (whose name has been written) that the plan was "Build this whole model on the backs of idiots" and "Try mining … it just means convincing fools:)".

And it gets worse

“On or around July 2014”, the accusation continues,

"As part of an online chat exchange, (written) he told GOETTSCHE that BCN's target audience would be‘ the typical silly MLM investor. "

Apparently, a lively video on the BitClub Network site was meant to convince those very dumb investors that everything was above the board.

"The more people you share with BitClub, the greater your income potential," Sing the cheerful voiceover.

According to the Justice Department press release, Abel told investors that the entire operation was "Too big to fail."

Unfortunately

Not everyone noticed the gigantic red flags. Real people invested in the alleged scam, and as a result millions were lost.

Both Goettsche and Weeks are accused of conspiracy to commit electronic fraud, and the three men are accused of conspiracy to offer and sell unregistered securities.

Two alleged co-conspirators have not been arrested and are not listed in the indictment.