Co-founder of BitClub admitted his crime.
Silviu Catalin Balaci, one of the names behind the scam known as BitClub Network and one of the biggest Bitcoin ponzi structures in history, admitted his crime. Balaci and his team highlighted Bitcoin worth $ 722 million and were involved in losses.
Speaking in his ongoing trial in the USA, Balacci stated that he sold unlicensed securities within the BitClub Network as well as e-fraud. The 35-year-old programmer, who lived in December of last year, is known to face a five-year prison sentence and a $ 250,000 fine.
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In his statement on the subject, Blalacci stated that the investors who come to the BitClub Network structure think that they should be “idiotic investors” and define them as “sheep”. Stating that they established this model in order to make money from the back of idiots, Balacci really succeeded and made millions of dollars.
Russ Medlin, one of the founders of BitClub, was also caught in Indonesia recently. Medlin’s BitClub connection, which was caught from an incident related to sexual assault after a six-month chase, was later discovered.
In fact, many Bitcoin ponzi structures are basically established thanks to people who are unaware of the market and have little knowledge. Fraudsters, who make promises that are too good to be true, meet and build trust in the first months. Later, fraudsters who disappeared with serious money still succeed despite dozens and perhaps hundreds of fraud examples.