DOJ moves to drop $722M BitClub case before trial as victims wait to learn what they will recover
The Justice Department plans to end its criminal case against Matthew Goettsche, accused of helping run the BitClub Network fraud, before an October trial. Bloomberg Law reported that DOJ leadership told New Jersey prosecutors to seek a dismissal with prejudice, after Goettsche’s lawyers told the court on July 8 that the sides had reached an agreement in principle and needed time to finalize terms. The case stems from allegations that BitClub raised at least $722 million from investors from 2014 to 2019 through false crypto-mining claims and recruitment rewards. Key details remain undisclosed, including the final settlement terms, whether dismissal has been formally requested, and how forfeiture, restitution, or victim recovery will work. The reported move comes after a 2025 DOJ memo directing prosecutors to stop using criminal cases to build digital-asset regulatory frameworks while prioritizing cases involving investor victims.
