Matthew Goettsche was set to face trial in October for conspiracy to commit wire fraud and selling unregistered securities.
The US Department of Justice is reportedly moving to drop charges against the founder of BitClub Network, a purported crypto mining platform that allegedly defrauded investors of $722 million between 2014 and 2019.
A court filing shows Matthew Goettsche’s attorneys wrote to New Jersey district court Judge Claire Cecchi on Wednesday, stating that the parties “reached an agreement in principle” to resolve the pending charges “but need time to finalize the terms.”
Goettsche’s attorneys' letter to New Jersey district court Judge Claire Cecchi. Source: Bloomberg Law
The filing came after the deputy attorney general’s office in Washington reportedly ordered the New Jersey attorney general’s office to dismiss the case against Goettsche with prejudice, according to a report on Friday from Bloomberg Law, citing two sources familiar with the matter.
Goettsche was indicted in December 2019 and was set to face trial in October for conspiracy to commit wire fraud and selling unregistered securities. A reversal would mark one of the more notable changes in US crypto enforcement history, particularly given that three of his former colleagues, Silviu Balaci, Joseph Abel and Gordon Beckstead, have pleaded guilty for their involvement in the scheme.
The potential reversal follows an April 2025 memo from Deputy Attorney General Todd Blanche, who directed the DOJ to end its “regulation by prosecution” strategy against the digital asset industry.
Cointelegraph reached out to the DOJ for comment but didn’t receive an immediate response.
BitClub operated from April 2014 to December 2019, claiming to be a Bitcoin mining pool where investors could buy shares and earn passive returns. BitClub allegedly falsified earnings values to investors and fabricated mining data to entice more investors into the scheme.
Related: Acting AG Todd Blanche confirms ‘code is not a crime’ in DOJ pivot
Past court filings show Goettsche once described his model as one built “on the backs of idiots.”
In April, California man Evan Tageman was sentenced to 70 months in prison for his role in a criminal enterprise that stole about $263 million worth of crypto from victims through social engineering scams and burglary.
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