DOJ to Drop $722M BitClub Network Crypto Fraud Case After Lobbying by Trump-Linked Lawyers

The U.S. Department of Justice plans to seek dismissal with prejudice of its 2019 criminal case against Matthew Goettsche, accused of orchestrating the $722 million BitClub Network crypto-mining scheme, following lobbying by attorneys tied to President Trump. Goettsche had been set for trial in October on charges including wire fraud and the sale of unregistered securities. Prosecutors allege BitClub Network operated as a worldwide crypto Ponzi scheme, paying participants for recruiting new members while falsely claiming investor funds were producing Bitcoin mining returns. The government also pointed to private messages in which Goettsche allegedly referred to investors as "dumb" and "sheep." The report said Goettsche hired a defense team that included Trump allies Bradford Cohen and Brett Tolman, who urged the DOJ to abandon the case. DOJ spokesperson Emily Covington rejected claims of political influence, saying the department routinely reviews long-running matters and that the decision had "nothing to do with any alleged pressure" from the defense. The prosecution had been pending for nearly seven years and was nearing trial. Three co-defendants previously pleaded guilty. The reported dismissal comes as the Trump administration has scaled back its focus on cryptocurrency enforcement, while seeking recovery for alleged victims through other channels.