A Romanian man admitted Thursday to conspiring to engage in wire fraud and selling unregistered securities linked to Bitclub Network, a cryptocurrency mining Ponzi scheme worth at least $722 million.

Silviu Catalin Balaci, 35, a Romanian citizen appeared before U.S. District Judge Claire C. Cecchi. Balaci pleaded guilty to a superseding information charging him with one count of a dual-object conspiracy to commit wire fraud and to offer and sell unregistered securities.

The Romanian was arrested in Germany and the court proceedings against him were conducted via video conferencing.

He and four co-defendants – Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks, and Joseph Frank Abel – were charged previously by indictment in December 2019 in connection with the scheme.

According to a statement issued by U.S. Attorney Craig Carpenito, Bitclub Network solicited money from investors in exchange for shares of purported cryptocurrency mining pools. Investors were rewarded for recruiting new investors into a scheme that…

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Source: https://news.bitcoin.com/romanian-programmer-admits-conspiring-to-create-722m-bitclub-ponzi-scheme/