DOJ moves to dismiss charges against alleged $722M BitClub fraudster: Report
Matthew Goettsche was set to face trial in October for conspiracy to commit wire fraud and selling unregistered securities.
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The post DOJ Seeks Dismissal of $722 Million BitClub Fraudster appeared on BitcoinEthereumNews.com. The US Department of Justice is reportedly moving to drop charges against the founder of BitClub Network, a purported crypto mining platform that allegedly defrauded investors of $722 million between 2014 and 2019. A court filing shows Matthew Goettsche’s attorneys wrote to New Jersey district court Judge Claire Cecchi on Wednesday, stating that the parties “reached an agreement in principle” to resolve the pending charges “but need time to finalize the terms.” Goettsche’s attorneys’ letter to New Jersey district court Judge Claire Cecchi. Source: Bloomberg Law The filing came after the deputy attorney general’s office in Washington reportedly ordered the New Jersey attorney general’s office to dismiss the case against Goettsche with prejudice, according to a report on Friday from Bloomberg Law, citing two sources familiar with the matter. Goettsche was indicted in December 2019 and was
Read full articleMatthew Goettsche was set to face trial in October for conspiracy to commit wire fraud and selling unregistered securities.
The post DOJ plans to end prosecution of alleged BitClub mastermind in $722M crypto fraud case appeared on BitcoinEthereumNews.com. The U.S. Department of Justice [DOJ] plans to dismiss its criminal case against Matthew Goettsche, the alleged founder of the BitClub Network cryptocurrency investment scheme, Bloomberg Law reported. This could potentially bring one of the longest-running crypto fraud prosecutions to an end. The reported move comes nearly seven years after federal prosecutors accused Goettsche and several co-defendants of operating a global cryptocurrency mining scheme that allegedly defrauded investors of at least $722 million. While the DOJ is reportedly preparing to dismiss the case with prejudice, no dismissal motion had appeared on the public court docket at the time of writing. Bloomberg: DOJ preparing to dismiss prosecution Bloomberg Law reported that the DOJ has instructed prosecutors in New Jersey to dismiss the charges against Goettsche with prejudice. This mean
The post DOJ Says Inmate Moved $290K Through Crypto Mixers appeared on BitcoinEthereumNews.com. United States prosecutors have charged a man serving a federal prison sentence over the alleged removal and laundering of about $290,000 in crypto assets held in a Kraken account subject to a forfeiture order. The Department of Justice said on Thursday that Rossen Iossifov, a Bulgarian national, conspired in January 2024 to withdraw and transfer crypto that a federal court had ordered forfeited following his 2021 conviction. Prosecutors allege that the assets were moved through illicit mixing services and crypto exchanges before the US could take possession. The case shows how attempts to move crypto after a forfeiture order can trigger fresh criminal charges, even after the underlying conviction. The US Attorney’s Office for the Eastern District of Kentucky said the cryptocurrency was held in an account registered to Iossifov at Kraken and had been restrained during the investigation. The
The post DOJ charges inmate over alleged $290K forfeited crypto theft appeared on BitcoinEthereumNews.com. The U.S. Department of Justice has charged a federal inmate over the alleged removal of about $290,000 in cryptocurrency forfeited to the government. Summary Prosecutors allege Iossifov moved $290,000 in forfeited crypto while serving a federal prison sentence already. The funds allegedly passed through several crypto exchanges and mixing services to conceal their movement. Iossifov faces up to 25 years if convicted, while all charges remain unproven in court. Bulgarian national Rossen G. Iossifov appeared in federal court in the Eastern District of Kentucky on charges linked to the funds. Prosecutors charged him with removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. DOJ alleges forfeited crypto was moved through mixers According to the Justice Department’s July 9 statement, Iossifov allegedly conspired to transfer the cryptocurr
DOJ charges inmate Rossen Iossifov over an alleged $290,000 crypto theft involving forfeited funds, exchanges and mixing services.
The post DOJ warns prosecutors of weaker Binance help, rattling global crypto enforcement appeared on BitcoinEthereumNews.com. Binance, which makes up about 39% of the overall spot trading volume for cryptocurrencies in the month of May, may become harder for investigators to depend on in the near future. The Information, which looked over an internal memo from the US Department of Justice (DOJ), stated that prosecutors dealing with cases regarding cryptocurrency were informed in June that cooperation from Binance may be less than wanted. It has been said that Binance intends to add conditions before fulfilling requests regarding freezing and seizing customer assets. This raises concerns for the digital asset industry as a whole. Being the largest cryptocurrency exchange in the world, Binance has proven to be an essential ally in the pursuit of tracking, freezing, and recovering illicit digital assets that were obtained by way of hacking, ransomware, violating sanctions, and fraud. Any
The post DOJ Reportedly Warns of Binance Cooperation Shift appeared on BitcoinEthereumNews.com. The US Department of Justice (DOJ) reportedly warned prosecutors to expect reduced cooperation from Binance in cryptocurrency investigations, according to The Information. The reported internal memo suggests investigators may face stricter legal requirements when seeking account freezes and asset seizures. Binance, however, has strongly denied making any changes to its law enforcement cooperation policies. DOJ Memo Signals Tougher Process for Crypto Investigations According to a report on The Information, the DOJ circulated an internal memo warning attorneys handling digital asset cases that Binance would no longer provide so-called “courtesy freezes” beginning June 8. Courtesy freezes are voluntary, temporary account restrictions that exchanges can apply upon requests from law enforcement or victims while formal legal documentation is obtained. The memo reportedly states that Binance will i
The post DOJ Advances US Strategic Bitcoin Reserve Plan. appeared on BitcoinEthereumNews.com. DOJ reviews legal authority for the US Strategic Bitcoin Reserve with federal agencies. Treasury and Commerce continue discussions over oversight of national Bitcoin holdings. Congress considers BITCOIN and ARMA Acts to establish the reserve through legislation. The U.S. Department of Justice is working with the Treasury and Commerce departments to establish a Strategic Bitcoin Reserve despite ongoing disagreements over oversight. The legal review marks another step toward implementing the reserve, although federal agencies continue evaluating the most appropriate governance structure. DOJ Reviews Legal Authority for Bitcoin Reserve The U.S. Department of Justice’s Office of Legal Counsel is working closely with the Treasury and Commerce departments on the Strategic Bitcoin Reserve initiative. The effort aims to determine which federal agency has the legal authority to oversee the proposed res