The U.S. Justice Department is preparing to dismiss its criminal case against Matthew Goettsche, whom prosecutors accused of helping lead the BitClub Network cryptocurrency operation, Bloomberg Law reported.
Officials in the deputy attorney general’s office instructed federal prosecutors in New Jersey to ask the court to dismiss the charges permanently, according to two people familiar with the internal decision. That outcome would prevent the government from bringing the same charges against Goettsche again.
Goettsche’s lawyers told the judge on July 8 that the parties had reached an agreement in principle to resolve the case, potentially avoiding a trial that had been scheduled for October. No dismissal motion or court order had been made public when the report was published, and the final terms were still under discussion.
Years-long prosecution moves toward an unexpected close
A Justice Department spokesperson said officials routinely reassess cases that have remained unresolved for years, adding that the government was recovering a substantial amount for investors and denying that pressure from Goettsche’s legal team influenced the decision.
Goettsche faces conspiracy charges involving wire fraud and the sale of unregistered securities, though the case remains pending unless and until the court approves a dismissal, and the allegations have not been proven at trial.
BitClub case dates back to 2019 indictment
Federal prosecutors charged Goettsche and several associates in December 2019, alleging that BitClub operated between April 2014 and December 2019 by selling interests in purported cryptocurrency-mining pools and rewarding participants who recruited new investors.
The government alleged that BitClub showed investors false or manipulated figures presented as bitcoin-mining returns. Prosecutors said the defendants obtained cryptocurrency worth at least $722 million from participants during the operation.
Authorities also accused the group of selling BitClub interests without registering them as securities with the U.S. Securities and Exchange Commission. Goettsche pleaded not guilty, while co-defendants Silviu Balaci, Jobadiah Weeks and Joseph Abel later pleaded guilty to charges connected to the operation.
The proposed dismissal would close the government’s case against Goettsche without a trial, conviction or judicial finding on the allegations.
