Hot news about Cryptocurrencies
For updates and exclusive offers, enter your email address.
Home » Beginners » What Is Masternodes: The List Of Coins

BitClub Network Mining Pool Organizers Accused Of Cryptocurrency Fraud For $ 700 Million


U.S. authorities arrested two Colorado residents and one California resident accused of creating a mining pool to trick investors. It is reported by the US Department of Justice.

From April 2014 to December 2019, the defendants managed the BitClub Network pool, attracting investments in exchange for shares in their company. In the tradition of Ponzi schemes, scammers promised a reward for attracting new members.

To maintain interest in the project, they provided investors with false information about the income from bitcoin mining, allegedly generated by their pool.

For several years of their criminal activity, attackers appropriated cryptocurrency in the amount of $ 722 million.

Two accused of conspiracy to commit electronic fraud face a prison sentence of up to 20 years in prison and a fine of up to $ 250,000 for electronic fraud. A similar fine and up to five years in prison threatens the third accused of illegal sale of securities.

Recall that in November the Massachusetts District Court arrested two scammers on charges of stealing cryptocurrency through the substitution of SIM cards. The damage exceeded $ 550,000.