Justice Department to Dismiss $722M BitClub Fraud Case

The U.S. Department of Justice is moving to dismiss its high-profile criminal case against Matthew Goettsche, the founder of the alleged $722 million BitClub Network cryptocurrency fraud, according to reports citing people familiar with the matter. The decision, which would permanently end the prosecution if approved by a federal judge, follows a 2025 policy shift within the department regarding digital asset enforcement.

A court filing submitted on Wednesday, July 8, 2026, to U.S. District Judge Claire Cecchi in New Jersey indicated that Goettsche's legal team and federal prosecutors had reached an agreement in principle to resolve the case, though the specific terms were not disclosed. The filing stated both sides required additional time to finalize the details. This development came after the Office of the Deputy Attorney General reportedly directed prosecutors in New Jersey to dismiss the case with prejudice.

Goettsche was indicted in December 2019 on charges of conspiracy to commit wire fraud and selling unregistered securities. His trial had been scheduled for October 2026. Prosecutors alleged that from 2014 to 2019, BitClub Network operated as a fraudulent Bitcoin mining...