Three Men Arrested for Running Alleged $722 Million Crypto Ponzi Scheme
Kollen Post's original article for cointelegraph.com reduced by 70%
United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Department of Justice. The accusations against BitClub NetworkAccording to the press release, BitClub Network promised massive rates of return in exchange for investments in a shared cryptocurrency mining pool.
The parties at the center of the scheme then allegedly misappropriated over $722 million of those funds into their own lavish living rather than the promised mining pool. Authorities further accuse the three men arrested of falsifying information on returns in order to solicit more investment as well as. Back in 2016, crypto news outlet 99Bitcoins warned against investing in BitClub, despite removing an earlier "Scam" label from the company.
"After gathering the facts I can't prove that Bitclub network is a scam beyond a shadow of a doubt. I do however still think that Bitclub Network's business model is lacking and wouldn't invest in it personally." Back in March of 2017, Cointelegraph reported on accusations that BitClub had launched a malleability attack on the Bitcoin network.
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Summarised crypto news.