The promoters of a bitcoin mining Ponzi scheme have been charged with wire fraud and selling unregistered securities. From April 2014 through December 2019, BitClub Network was a fraudulent scheme in which investors got shares of cryptocurrency mining pools and were rewarded for recruiting new investors into the scheme. Investors were shown fabricated “bitcoin mining earnings” allegedly generated by BitClub Network’s bitcoin mining pool. The promoters of the scheme sold BitClub Network shares—which were securities BitClub Network did not register with the SEC. The scheme defrauded hundreds of thousands of investors out of around $722 million, one of the largest cryptocurrency frauds in the books. (www.justice.gov/usao-nj/bitclub)
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