The US citizen named Joseph Frank Abel has recently <a href="https://www.justice.gov/usao-nj/pr/california-man-admits-securities-and-tax-offenses-related-722-million-bitclub-network" target="_blank" rel="noopener">admitted</a> that he took in $722 million through a BitClub network Ponzi scheme, in front of New Jersey court.

On September 03, while presenting the case in the court, the US Attorney Craig Carpenito notified that 50-year-old Joseph Frank Abel has admitted that he sold unregistered securities in order to raise $722 million through a Ponzi scheme.
<h2>Four People Involved In BitClub’s Scam</h2>
As per the report, the charges put on Abel carry imprisonment of a maximum of 5 years along with a fine of either $250,000 or twice the profit he had earned from the victims. 

It has been notified that the judgment on this case would be announced in January 2021. 

The fake mining scheme was started in April 2014 and was being operated by four people, one of them was Abel. Later, in December 2019, the BitClub network Ponzi scheme was shut and all four convicts were taken into custody.

Before Abel, a Romanian citizen named <a href="https://www.cryptoknowmics.com/news/romanian-programmers-involvement-in-bitclub-722-million-crypto-fraud/">Silviu Catalin Balaci</a> had pleaded guilty in the court.  
<h2>BitClub Promise To Reward Investors</h2>
Bitclub’s Ponzi scheme was just like any other Ponzi scheme. It defrauded the investors by claiming that the funds they have invested in the scheme would be used in Bitcoin mining rigs. 

The scheme further claimed to the investors that they would generate Bitcoins to earn profit from it. It has been mentioned in the scheme that the BitClub network would transfer a proportion of its earned profit to the investors. 

It is to be noted that in order to influence the investors, the BitClub network inflated the profitability earned by its miners. 

BitClub started operating another program which was related to its already existing scheme. With the help of this program, BitClub defrauded new investors, and earned money from them to pay its old investors.

People who have become the victim of this scam were being referred to as ‘Sheep’ and ‘dumb’.

US Man Accepts BitClub’s $722 Million Bitcoin Biz Was Ponzi Scam

The US citizen has recently admitted that he took in $722 million through a BitClub network Ponzi scheme, in front of New Jersey court.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

US Man Accepts BitClub’s $722 Million Bitcoin Biz Was Ponzi Scam

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