Why is the US Department of Justice dropping the BitClub Network case?

The US Department of Justice said it has reached an agreement to dismiss the charges against Matthew Goettsche. The court must still approve the request before the case officially ends.

What was the BitClub Network fraud case about?

Prosecutors alleged BitClub Network ran a US$722 million cryptocurrency mining fraud between 2014 and 2019. They said the scheme promised mining returns while rewarding members for recruiting new investors.

What does "dismissed with prejudice" mean in the BitClub Network case?

A dismissal with prejudice means the US Department of Justice cannot bring the same criminal charges against Matthew Goettsche again if the court approves the request.

What happened to the other BitClub Network defendants?

Three former BitClub Network defendants have already pleaded guilty to charges linked to the alleged fraud. Their cases were resolved separately from Matthew Goettsche's.

Is the BitClub Network case officially over?

Not yet. The BitClub Network case will remain open until the court approves the US Department of Justice's request to dismiss the charges against Matthew Goettsche.

Image for illustrative purposes only. Not a real photo.

DOJ drops BitClub fraud case before trial

Written by Jon CuthbertPublished Jul 13, 2026, 3:36 AM

The US Department of Justice plans to drop charges against the alleged founder of the US$722 million BitClub Network fraud scheme.
The case was due to go to trial after nearly seven years in court.
Three former BitClub defendants have already pleaded guilty, while the court must still approve the dismissal.

The US Department of Justice plans to dismiss criminal charges against Matthew Goettsche, who was accused of leading the US$722 million BitClub Network crypto fraud.

Goettsche was charged in 2019 with wire fraud conspiracy and selling unregistered securities, but his trial is no longer expected to proceed.

“The parties have reached an agreement in principle to resolve the pending charges,” Goettsche's lawyers said in a court filing.

The Justice Department plans to dismiss the case with prejudice, which would prevent the charges from being filed again if the court approves.

Prosecutors alleged BitClub Network operated between 2014 and 2019, promising returns from cryptocurrency mining while rewarding members for recruiting new investors.

Three former BitClub defendants have already pleaded guilty, while Goettsche argued that his right to a speedy trial had been violated.

The court has not yet approved the dismissal, and the case will remain open until a judge signs the final order.