DOJ to drop charges against man accused in $722 million BitClub crypto Ponzi scheme: Bloomberg

After a years-long legal battle, the U.S. Department of Justice is planning to drop charges against the "mastermind" of a $722 million crypto ponzi scheme, according to Bloomberg.

"The deputy attorney general’s office in Washington recently ordered the New Jersey U.S. attorney’s office to dismiss the prosecution with prejudice, although final terms are still being hashed out before the parties inform the court," Bloomberg Law reported, citing anonymous sources.

The man in question is Matthew Goettsche, credited with creating the crypto mining operation called BitClub Network. While Goettsche's case has dragged on, three co-defendants in the case have pleaded guilty.

In 2020, Joseph Frank Abel confessed to his involvement with the BitClub ponzi scheme, admitting to offering and selling unregistered securities in connection with the fraud case.

Trump connections

According to Bloomberg, two people urging the DOJ to drop the charges against Goettsche include Bradford Cohen, a lawyer and former contestant on 'The Apprentice,' and Brett Tolman, a conservative advocate who has helped clients secure pardons from President Donald Trump.

"Facing counts of conspiracy to commit wire fraud and to sell unregistered securities, Goettsche assembled a team of lawyers with connections to the Trump administration to lobby DOJ for relief," Bloomberg also said, again citing anonymous sources.

The move to drop charges would reverse course on a 2019 indictment that was nearing trial, the report added. According to a court filing, Goettsche once said his model was built "on the backs of idiots."