In a dramatic reversal of a high-profile 2019 indictment, senior Justice Department leaders plan to drop all criminal charges against Matthew Goettsche, the alleged mastermind behind a massive cryptocurrency Ponzi scheme, according to a news report by Bloomberg Law. The deputy attorney general’s office in Washington recently directed the New Jersey U.S. attorney’s office to dismiss the prosecution with prejudice, according to two individuals familiar with the matter. While the final terms are still being negotiated before the court is formally notified, the decision effectively shields the Colorado man from a trial that was scheduled to begin this October.
The abrupt policy shift comes amid a broader retreat on cryptocurrency industry enforcement under the current administration. Goettsche was indicted for creating and operating the BitClub Network, an advanced crypto mining operation that prosecutors alleged defrauded global investors of $722 million by rewarding them for recruiting new members. According to internal communications cited in court filings, Goettsche allegedly mocked his victims, describing his business model as being built “on the backs of idiots” and referring to prospective investors as “dumb” and “sheep.”
Facing serious counts of conspiracy to commit wire fraud and sell unregistered securities, Goettsche assembled a team of well-connected defense attorneys to lobby the Department of Justice for relief. The legal team included prominent figures with ties to the administration, such as Bradford Cohen, a Florida lawyer and former contestant on “The Apprentice,” and Brett Tolman, a conservative criminal justice advocate known for helping clients secure presidential pardons. Despite defense motions in June arguing that the seven-year-old case violated Goettsche’s constitutional right to a speedy trial, a department spokesperson maintained that the decision was routine and unaffected by outside influence.
Department of Justice spokesperson Emily Covington stated that the agency regularly evaluates cases that have been pending for several years, adding that the government is currently recovering a substantial amount of the funds owed to investors. Covington emphasized that the decision to abandon the case had nothing to do with any alleged pressure from Goettsche’s attorneys. While Goettsche’s legal team did not respond to requests for comment, they informed the presiding judge on July 8 that an agreement in principle had been reached to resolve the pending charges.
