DOJ Drops Charges Against Alleged $722 Million Crypto Ponzi Schemer

Federal prosecutors in New Jersey have asked a judge to dismiss charges against Matthew Goettsche, accused of running a $722 million cryptocurrency Ponzi scheme.

Goettsche's BitClub Network rewarded investors for recruiting new members, but instead of delivering the promised returns, he allegedly used their funds for himself. He was facing counts of conspiracy to commit wire fraud and to sell unregistered securities, with a trial scheduled for October.

However, in a surprise move, prosecutors have now asked Judge Claire C. Cecchi to dismiss the indictment 'with prejudice', meaning Goettsche would be barred from being retried on these charges. This decision follows reports that DOJ leaders had ordered the New Jersey US attorney's office to reverse course on the 2019 indictment.

Goettsche's lawyers, who include a team with connections to the Trump administration, had lobbied the Department of Justice for relief. The government claims it made this decision 'in its prosecutorial discretion', and that they are still recovering funds owed to investors.