- BitClub stole more than $722 million by running a cloud mining Ponzi scheme
- The brains behind BitClub have been systematically hunted down by the FBI, with the CEO now in cuffs
- BitClub’s CEO is facing multiple charges of sex abuse along side running the BitClub Ponzi scheme
BitClub reared its ugly head back in 2014, promoting the fact that regular people could enjoy the profits of Bitcoin mining by investing in mining equipment from BitClub. BitClub would then allegedly set up and maintain the mining equipment, sending profits back to investors.
But, as all things that sound too good to be true, BitClub blew up and vanished from the face of the Earth. Back in January, four key members were arrested, but yesterday the presumed CEO, Russ Albert Medlin, was arrested in Jakarta for sex crimes.
Wanted By the FBI
Medlin has been on an FBI most wanted list for his role in the BitClub Ponzi scheme and his role in extorting more than $722 million from the general public. According to the arrest report, Medlin was wanted in Jakarta in connection with the sexual abuse of three minors, a crime that carries a maximum punishment of 15 years in Indonesia.
Reports are circulating that Medlin could be transferred to the USA to serve his sentence in which he would face doing time for both his crimes, if found guilty. However, many of the victims of his Ponzi scheme are still unsure as to whether they will ever see their money again, with the majority expecting to never see it again.
Ponzi Scheme Fallout Hurting Cloud Mining
Cloud mining is a legitimate business, but BitClub has put it on shaky grounds, causing many people not to trust this type of crypto investment. Cloud mining is the practice of giving money to a company who will then invest the money in crypto mining equipment, mine cryptos with this equipment and send back the profits to your account. There are a number of legitimate firms that offer this type of business, but there are also a lot of scammers out there using this vector.
It’s only a matter of time before all of the BitClub crew are locked up and behind bars for their crimes, but that doesn’t help the people that lost their entire life savings to the hands of these criminals.