Alleged Operators of $722M Crypto Scheme Seek Jail Release Amid COVID-19 Fears

Alleged Operators of $722M Crypto Scheme Seek Jail Release Amid COVID-19 Fears

Business Crypto news
March 26, 2020 by Super System
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Bitcoin and Prison

A Way Out

Bitcoin and Prison

Matthew Geottsche and Jobadiah Weeks, alleged crypto scheme operators, have filed separate motions petitioning Newark’s Exxex County Correctional Facility for their releases on March 20th and March 23rd, respectively over serious concerns about the prison having an oncoming outbreak from COVID-19. 

Rodney Villazor, Goettsche’s attorney, said that it is just a matter of time before the facility experiences a coronavirus outbreak and argued that once it starts in jail, it will be impossible to stop. He added that the risk to his client’s health and safety is greater each day that he remains incarcerated.

New Jersey Jail Under Fire For Widespread Health And Safety Issues

According to Week’s attorneys, the prison has an “exceptionally poor record of maintaining detainee health”. He cited last year’s finding by the US Homeland Security’s Office of Inspector General that deemed the facility as a threat to the health and safety of the detainees. 

The finding identified that every housing unit with detainees had leaks causing the growth of mildew and mold, along with serious food safety concerns including the distribution of raw, expired, or spoiled meat and chicken, as well as moldy bread. The hamburgers were found to have a foul smell and look unrecognizable. Weeks’s representation also added that given the state of inadequate hygiene and food safety at the facility, a COVID-19 outbreak was inevitable at the prison.

While one school of thought says that the facility could be locked down to prevent this from occurring, the lawyers argued that this would make it impossible for the detainees to comply with discovery requests in their ongoing legal proceedings. 

What They Did To Get There

The two defendants, along with a pair of others are accused of operating a $722 million Ponzi scheme between 2014 and late 2019, disguising it as a cryptocurrency mining pool named BitClub Network.

The suspects are said to have allegedly collected funds from investors for shares in their mining pool, going so far as to offer referral bonuses for bringing in additional members. BitClub was accused of distributing misleading and false documentation to investors that claimed to be showing the profits they were generating. Goettsche and Weeks are charged with conspiracy of committing wire fraud, while all four of BitClub operators are being charged with conspiracy to sell securities that were unregistered.

 


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