New Jersey police unearth $722 million cryptocurrency fraud scheme

The New Jersey Department of Justice has busted a seven hundred and twenty-two million US dollars ($722 million) cryptocurrency fraud scheme allegedly operated by three men who deceived several investors into investing in a shared cryptocurrency mining pool.

In the new digital era, cryptocurrency fraud is a looming threat as it continues to gain a foothold by deceiving thousands of people into fraudulent schemes every day. Some of the most common and prevalent forms are shady unregulated exchanges, newly-created digital assets that promise astronomical gains in short span of time, or the ever-popular investment schemes with guaranteed returns. Despite the awareness, cryptocurrency scams continue to find victims, and surprisingly, in large numbers.

Another cryptocurrency fraud surfaces

In the latest, a BitClub Network assured many of guaranteed returns upon investing in a shared cryptocurrency mining pool. The three men in charge of running this large-scale cryptocurrency fraud scheme managed to embezzle funds worth over seven hundred million US dollars and squandered it on living a rather lavish lifestyle.

According to the official statement released by the US Attorney’s Office on 10th December 2019, the accused were identified as Matthew Goettsche and Jobadiah Weeks, from Colorado, and Joseph Abel, hailing from California.

The first two are charged with conspiracy to engage in fraud, carrying a maximum sentence of twenty years in prison, and the third fraudster is accused of selling unapproved securities, along with conspiracy to commit fraud. Abel may get a maximum sentence of five years. The police further charged all three of them for providing false information to investors in a bid to lure in more victims.

More such notable scams

What’s more surprising is the fact that BitClub hasn’t really had a virtuous reputation when it comes to running straightforward operations and this was highlighted by a crypto news outlet, 99Bitcoins. According to the author of the article, there is no evidence against BitClub running a shady business; however, their operations aren’t as above-board as one may think.

Another such notable case was the OneCoin Ponzi scheme, one of the most unnerving cryptocurrency schemes in recent times that pocketed in over four billion US dollars ($4 billion) from thousands of victims across the globe. Recently, the Manhattan jury found the accused lawyer guilty of laundering up to four hundred million US dollars ($400 million) for the scheme’s founder Ruja Ignatova, who remains fugitive.

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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO , and should not be attributed to, CriptomonedaseICO .

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