DOJ to Dismiss Charges Against Alleged BitClub Mastermind

The Justice Department plans to dismiss with prejudice the prosecution of Matthew Goettsche, who has been accused of running the $722 million BitClub Network crypto Ponzi scheme. The deputy attorney general’s office directed the U.S. Attorney’s Office in New Jersey to drop the case, though final terms remain under negotiation before the parties notify the court.

Goettsche was indicted in 2019 on counts of conspiracy to commit wire fraud and to sell unregistered securities. Prosecutors have accused him of creating and operating BitClub Network, a purported crypto mining business that raised roughly $722 million from investors. The case was advancing toward trial before the directive from the Justice Department.

Three co-defendants have pleaded guilty in related proceedings. In 2020 Joseph Frank Abel admitted his role in the scheme and acknowledged offering and selling unregistered securities connected to BitClub. Other defendants entered guilty pleas in separate filings, reducing the number of active defendants in the prosecution.

Defense lawyers with ties to the Trump administration lobbied the Justice Department for relief on Goettsche’s behalf. Attorneys involved in that effort include Bradford Cohen and Brett Tolman, who pressed DOJ officials to drop the charges.

A court filing recorded a remark attributed to Goettsche that his business model was built “on the backs of idiots.” A dismissal with prejudice would bar prosecutors from refiling the same charges against him. The court has not yet been formally notified; once the parties file the necessary documents the docket will reflect the end of the prosecution unless other authorities pursue separate actions.