Bloomberg · DOJ · US Congress · CryptoSlate
DOJ moves to drop $722 million BitClub case before trial as victims wait to learn what they will recover
Compiled by KHAO Editorial — aggregated from 1 source + 2 references discovered via search. See llms.txt for citation guidance.
◌ Single Source
The Justice Department plans to end its criminal case against Matthew Goettsche, who prosecutors accuse of helping run the BitClub Network fraud scheme, before an October trial.
Key facts
- The DOJ's BitClub case page says Goettsche and other defendants were charged in a scheme that allegedly obtained at least $722 million from investors between 2014 and 2019
- A DOJ spokesperson told Bloomberg Law that the government was recovering a substantial amount owed to investors
- The possible reversal also follows a 2025 DOJ memo that said the department would stop using criminal cases to impose regulatory frameworks on digital assets and would review ongoing matters
- The DOJ directs people who believe they were victims to an FBI questionnaire, while leaving any award or distribution process undisclosed
Summary
01 Justice Department plans to drop its criminal case against BitClub defendant Matthew Goettsche before an October trial. 02 The case centers on an alleged $722 million fraud, and victims still do not know what recovery they may get. 03 Prosecutors have not filed the dismissal, and court filings still must clarify forfeiture, restitution, and any remaining claims. Bloomberg Law, citing two people familiar with the matter, said the deputy attorney general's office instructed prosecutors in New Jersey to seek a dismissal with prejudice.