【1970年 米ポルノ映画】$722 million 'too big to fail' crypto Ponzi scheme just failed

Just because you're fraudulently raking in hundreds of millions of dollars doesn't mean you970年 米ポルノ映画to be such a jerkabout it.

It's clear no one passed this message along to the three men arrested today for their alleged part in a $722 million globe-spanning cryptocurrency Ponzi scheme. In a Dec. 10 press release from the Department of Justice, the men stand accused of a years-long effort to fool investors into believing they ran a bitcoin mining pool — all the while disparaging anyone stupid enough to believe their supposed lies.

Starting in 2014, Matthew Brent Goettsche and Jobadiah Sinclair Weeks, both of Colorado, along with Joseph Frank Abel of California, allegedly ran BitClub Network — a service that promised to take investors' money and put it toward mining cryptocurrency.

"You can buy into pools for $500, $1,000 or $2,000," explains the website. "Each contract lasts for 1,000 days, during which you’ll receive your share of the currency we mine."

"We are building this whole model on the backs of idiots."

The idea, at least on the face of it, was that investors would earn returns based on the bitcoin mined by BitClub Network.

That's not exactly how it worked out.

In reality, the DOJ insists BitClub Network was not putting investors' money toward mining equipment and was, instead, a huge scam.

Mashable Light Speed Want more out-of-this world tech, space and science stories? Sign up for Mashable's weekly Light Speed newsletter. By clicking Sign Me Up, you confirm you are 16+ and agree to our Terms of Use and Privacy Policy. Thanks for signing up!

Around January of 2015, the indictment notes that Goettsche told an individual (whose name has been redacted) that the plan was "building this whole model on the backs of idiots" and to "prove the mining ... just means convincing the morons :)."

But wait, it gets worse. "In or around July 2014," the indictment continues, "as part of an online chat exchange, [redacted] told GOETTSCHE that BCN's target audience would be 'the typical dumb MLM investor.'"

A peppy video on the BitClub Network site was, apparently, meant to convince those very dumb investors that everything was above board.

"The more people you share BitClub with, the greater your earning potential," intones the cheery voiceover.

To knock this entire thing even further into the realm of seemingly obvious scam, according to the DOJ press release, Abel told investors that the entire operation was "too big to fail."

Unfortunately, not everyone noticed the giant red flags. Real people invested in the alleged scam, and millions were lost as a result.

Original image has been replaced. Credit: Mashable

Both Goettsche and Weeks are charged with conspiracy to commit wire fraud, and all three of the men are charged with conspiracy to offer and sell unregistered securities.

Two alleged co-conspirators have not been arrested, and are not named in the indictment.

SEE ALSO: Two Massholes arrested in SIM swapping for cryptocurrency scheme

"What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars," U.S. Attorney Carpenito is quoted as saying in the DOJ press release.

It looks like Goettsche might need to adjust his stated plan to "retire RAF!!! (rich as fuck)." If he's interested, we know of a few great investment opportunities.

Topics Bitcoin Cryptocurrency

• explore
• focus
• synthesize
• hotspot
• fashion
• recreation
• relaxation
• knowledge

• 'Hiroshima Mon Amour' Director Dies at 91
• 'Selma' creators out 2015 Oscar snub as Black Lives Matter retaliation
• 'I May Destroy You' is a defining moment for on
• Jack Dorsey calls out Trump on Twitter over video copyright
• ‘Manzanar to Mount Whitney’ Author to Speak at JCI
• Amazon halts police use of its facial
• EU wants Facebook, Google to give monthly reports on fake news fight
• Hulu revamped its app to be more like Disney+. But is it any good?
• syrsoN: "I don't give a f*** what people are saying about me; I know what I'm capable of"
• 'Artemis Fowl' is a criminal waste of time: Disney Plus Review

• How to talk to kids about climate change
• Genius kid turns empty tube of lip balm into cheese dispenser so she can eat in class
• Pigeon poops on politician trying to fix pigeon poop problem
• Netflix's 'Tall Girl' needs way more of Anjelika Washington's Fareeda
• Pentesters arrested probing courthouse security charged as criminals
• Yes, people actually showed up to the Area 51 music festival
• Usher worried he was too old to play himself in 'Hustlers' cameo
• Verizon 5G hits New York City, including parts of Brooklyn and Queens, later this month
• FAA closes Area 51 airspace ahead of Alienstock for 'special security reasons'
• Justin Trudeau apologizes for wearing brownface in old yearbook photo, calls it racist

• ‘Angry’ Cartoonist to Speak at JANM
• Jack Dorsey calls out Trump on Twitter over video copyright
• iNaturalist app review: Learn about plants and animals easily
• Hulu revamped its app to be more like Disney+. But is it any good?
• 'Bringin' It Back to J
• iNaturalist app review: Learn about plants and animals easily
• Growing up with the Atari 2600, my first gaming crush
• Apple's 'synthetic' group selfie patent could be perfect for social distancing
• Horsing Around
• 'Da 5 Bloods' review: A perfect movie for the moment we're in

• Historic Wintersburg Chronicled in New Book
• Apps for finding black
• Hulu ends support for old Roku devices
• Tesla workers reportedly test positive for COVID
• Animation Award Nominees Announced
• Netflix adds Black Lives Matter category
• Facebook releases tips for group mods on how to be more inclusive
• Microsoft's AI makes racist error and then publishes stories about it
• Astralis end Aurora's 15
• The Moto G Fast and Moto E are Motorola's new budget Android phones