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A 35-year-old Romanian programmer of the Bitclub Network pleaded guilty to his role in establishing the Ponzi scheme

Silviu Catalin Balaci, the Romanian programmer, has confirmed his role in the Ponzi BitClub Network program. Balaci faces a maximum penalty of five years in prison and a fine of $ 250,000. However, the court has not yet officially decided the sentence.

a-35-year-old-romanian-programmer-of-the-bitclub-network-pleaded-guilty-to-his-role-in-establishing-the-ponzi-scheme

A 35-year-old Romanian programmer of Bitclub Network pleaded guilty to his role in establishing the Ponzi scheme

According to U.S. Attorney Craig Carpentino, Balaci was arrested in Germany before pleading guilty to via videoconference to a U.S. district judge. Balaci pleaded guilty to fraud and sale of unregistered securities related to BitClub Network.

Balaci confirmed in his plea that BitClub had indeed wreaked the economic damage that prosecutors accused the mining pool’s principals of committing: $ 722 million in stolen bitcoin over five years. Balaci faces a maximum penalty of five years and a $ 250,000 fine.

Balaci’s testimony shows that BitClub never ran lucrative bitcoin mining groups, which lured victim investors between April 2014 and December 2019. Instead, Balaci said he exaggerated the site’s operations to deceive sheep and sheep.

Balaci said:

“I assisted Matthew Brent Goettsche and Russ Albert Medlin in setting up the network as its programmer.”

The Department of Justice (DOJ) first charged three other men in connection with the BitClub Network in December last year. Matthew Brent Goettsche, Jobadiah Sinclair Week, and Joseph Frank Abel were also accused of conspiracy to commit fraud over the line and selling unregistered securities. Goettsche has been in custody since December; Medlin, a fugitive, was arrested on sex charges in Indonesia in June.

Balaci and Goettsche plan to target undesirable investors. As part of the plan, Balaci and Goettsche discussed that the target audience of BitClub Network would be stupid investors.

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