Four men have been investigated regarding the crypto mining scheme. One of the four men has been charged guilty regarding the case amounting to $722 million on the long-running scheme. Silviu Catalin Bacali, a 35-year-old Romanian programmer was arrested in Germany last December 2019.
He got charged with conspiracy to commit wire fraud and about offering and selling unregistered securities. This leads him to a fine of $250,000 and five years of imprisonment at a maximum.
Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks, and Joseph Frank Abel has been charged with connections made on the scheme in the United States on that same month.
The prosecutors made allegations that they have been operational since April 2014 and December 2019. The group is said to solicit money from the investors in exchange for shares in cryptocurrency mining pools. The investors are all after the referral reward to encourage more people to join the network.
Goettsche and Bacali have made fake mining earnings to show some proof to the possible investors. The said scheme has three bitcoin mining pools.
However, Bacali said that he was unaware that there is more than one pool in operations by the BitClub Network. Bacali has been charged about changing figures to mislead the investors. The scheme has made up to $722 million worth of money from the BTC investors alone.