Since the introduction of cryptocurrency, there have been people who haven’t been doing things in the proper, lawful manner. This led to a crackdown on the industry starting in 2018, and that crackdown is continuing. One man recently pleaded guilty to federal criminal charges based on his actions with a Bitcoins mining scheme. He is awaiting sentencing in January.
There are also four co-defendants in this case, one of whom has also pleaded guilty to the fraud charges against him. The case involves at least $722 million. It’s being called a high-tech Ponzi scheme that involved the BitClub Network.
The man pleaded guilty to a charge related to a false tax return and to conspiring to sell and offer securities that are unregistered. He was soliciting payments from investors across the world in exchange for shares in pools for mining cryptocurrency. The mining involves trying to solve algorithms with software to earn Bitcoins that are newly issued.
He was also encouraging investors to recruit others to invest and rewarding them for those recruits, which is why this was considered a Ponzi scheme. These actions began in April 2014 and ended in December 2019 when the five defendants were charged.
Anyone who’s facing accusations of any federal crime, including fraud and securities-related charges, should consult with an experienced attorney right away. You need to know what options you have so you can determine which is best for you. Because these cases are so complex, it’s best to start the defense strategy planning as soon as possible after you learn that you could be facing charges.