A Bitclub Network Ponzi scheme promoter has admitted to charges of selling unregistered securities and to subscribing to a false tax return in connection with his role in the $722 million fraud scam. The man, Joseph Frank Abel, pleaded guilty by video conference before U.S. District Judge Claire C. Cecchi.

The U.S. citizen becomes the second person to plead guilty to charges relating to the scam after Romanian Silviu Catalin Balaci’s admission in July. Abel was initially charged by indictment in December 2019 along with four other co-defendants soon after their arrest.

According to the statement released by U.S. Attorney, Craig Carpenito, the defendant, and his accomplices operated “a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools.” In addition, the scheme “rewarded investors for recruiting new investors into the scheme.”

Furthermore, the statement says Abel, who operated as the scheme’s large-scale promoter, “marketed and sold shares of Bitclub…

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Source: https://news.bitcoin.com/us-man-pleads-guilty-in-722-million-bitclub-network-ponzi-scheme-case/