Founder of $ 772M Bitcoin Ponzi Confesses His Crime.
The 35-year-old Romanian programmer named Silviu Catalin Bacali was arrested in Germany in December 2019. Electronic fraud faces a 5-year prison sentence and a $ 250,000 fine on charges of offering and selling informal securities.In the same month, other people involved in this fraud – Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks and Joseph Frank Abel – were charged in the US.
Prosecutors said that the operation that operated between April 2014 and December 2019; It is claimed that they demand money from investors in exchange for shares in so-called cryptocurrency mining pools. Investors were also given bonuses to include more investors in the network.
Evidence of correspondence
The indictment includes correspondence between Goettsche and Balaci, which discusses how to make mining earnings fake and allegedly called “sheep” to investors.
Other defendants claimed that it offered investors the option to invest in three additional Bitcoin ( BTC ) mining pools; Bacali admitted that the BitClub Network was unaware that it operated more than one pool.
In the correspondence between the programmer and Goettsche after 2015, Bacali was asked to “increase the daily mining income by 60% from today”; however, it turned out that Bacali objected because he was “unsustainable” and “entered the ponzi area”.
Still, he is accused of changing figures to mislead investors. Bacali also confirmed the claim that investors received at least $ 772 million of BTC .