50-year-old Joseph Abel has pleaded guilty to two securities & tax-related offenses recently on Thursday due to his involvement in promoting BitClub Network, an illegal investment scam scheme worth $722 Mln that alleged to be a crypto mining pool.
Abel admitted to selling shares of the BitClub Network’s purported mining pools without any approval from the United States SEC [Securities and Exchange Commission]. He also failed to report roughly $1 Mln in income that he received in exchange for his promotion of BitClub.
“Abel operated as a large-scale promoter of the BitClub Network,” consistent with an official press release from the District of New Jersey United States Attorney’s Office. The scheme took money from investors in exchange for shares within the scheme & rewarded its investors for recruiting new participants.
BitClub highlights how widespread investor enthusiasm over Bitcoin [BTC] and other cryptocurrencies are often co-opted by illicit actors.
Also earlier in the month of July, the 35-year-old Romanian programmer behind the operation pleaded guilty to his role in defrauding investors of several million dollars in Bitcoin’s.