US DOJ Seeks to Drop Charges Against BitClub Founder in $722 Million Crypto Fraud Case

The U.S. Department of Justice is moving to drop charges against the founder of BitClub Network, who had been accused in a $722 million cryptocurrency fraud case.

Cointelegraph reported on July 10 that two people familiar with the matter said the office of the deputy attorney general had directed federal prosecutors in New Jersey to dismiss the case against BitClub founder Matthew Goettsche. In a filing submitted to U.S. District Judge Claire Cecchi, Goettsche's lawyers wrote that the two sides had reached an agreement in principle but needed more time to finalize the details.

Goettsche was charged in December 2019 with conspiracy to commit wire fraud and selling unregistered securities. He had been set to go to trial in October 2026. If the charges are dropped, the move would mark one of the most notable reversals in the history of U.S. cryptocurrency enforcement. Three co-defendants — Silviu Balaci, Joseph Abel and Gordon Bradbeck — have already pleaded guilty.

The move follows Deputy Attorney General Todd Blanche's April 2025 directive to stop using prosecutions as a regulatory strategy against the digital-asset industry.

BitClub Network had been accused of soliciting investors with promises of returns from a Bitcoin mining pool, then deceiving them by manipulating profit figures and mining data.