The promoter of the BitClub pyramid that raised $ 722 million pleads guilty in court

The former promoter of the BitClub pyramid has admitted to promoting and selling unregistered securities and filing a false tax return.

California resident Joseph Frank Abel admitted that he sold shares in the BitClub Network mining pools without the permission of the US Securities and Exchange Commission (SEC). He also did not report the approximately $ 1 million in revenue he received in exchange for promoting BitClub.

“Abel was a major promoter of the BitClub cryptocurrency pyramid,” according to a press release from the New Jersey District Attorney’s Office.

A conspiracy charge that Abel pleaded guilty carries a maximum sentence of five years in prison and a fine of up to $ 250,000. A tax-related charge that Abel also pleaded guilty carries a maximum sentence of three years in prison and a fine up to $ 100,000. The verdict will be announced on January 27, 2021.

From April 2014 to December 2019, the founders of BitClub, arrested at the end of last year, collected $ 722 million from the pyramid participants under promises of profits from cryptocurrency mining.

In March, two alleged operator kriptovalyutnoy pyramid BitClub Network appealed to the federal court in New Jersey with a request to release them from prison due to fears of contracting coronavirus. However, a federal prosecutor in New Jersey spoke against the release.

Recall that in June, the Indonesian police arrested the co-founder of the BitClub cryptocurrency pyramid, Russ Albert Medlin. However, the reason for the arrest is not related to the pyramid – he was accused of seducing minors.

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