news A Bitclub miner admits to Ponzi Scheme

[BrolySSJ 7899]

BitClub is a mining pool that has gained increasing popularity. However, one of the programmers, Silviu, has confirmed that BitClub may not be all that it seems, and has pleaded guilty as such to his role in establishing this ponzi scheme. The scheme resulted in a total of 722 million dollars being stolen in bitcoin over the course of five years. 

 

During the period beginning in April 2014, Silviu admitted that the values of their mining that was shown on the site was not actually true, and was in fact higher than the actual values, therefore promoting investment in the site. This allowed people to stick around, thinking that their money was doing good, when in actual fact there was a huge ponzi scheme going on behind the curtains. 

 

In exchange for his plea, Silviu will receive a maximum jail sentence of five years and a quarter of a million dollar fine. Do you guys think this is fair? After stealing 722 million dollars, his fine is a quarter million? 

 

Here is the link to the article:

https://www.coindesk.com/bitclub-programmer-admits-mining-scheme-stole-722m-in-bitcoin

 

Let me know what you guys think. 

[Whited35 15285]

3 hours ago, BrolySSJ said:

In exchange for his plea, Silviu will receive a maximum jail sentence of five years and a quarter of a million dollar fine. Do you guys think this is fair? After stealing 722 million dollars, his fine is a quarter million? 

At least scammer will be getting punished. There are so many scammers who have not got punished yet. It is so sad that so many users have lost their hard-earned money due to his ponzi schemes. Clearly he has just rotated users' funds to do that huge loot. Most of greedy people were easily fallen into his mining pool Ponzi scheme. So never trust cloud mining sites so easily. 

[Moaz 7239]

I think that most of the ponzi schemes in the field of crypto are huge scams that steal investor money and this is very bad in the world of crypto, so we must be cautious and should not invest except in safe sites

[BTC Future 3946]

It seems many people were involved in this scam. The judge will certainly try to rule in favor of returning first of all the funds to the initial investors and then ruling over the punishment. I don't think this person was the only one charged in this crime. Certainly records exist and the money ought to be tracked and demanded to be given back in whole.

[koussai999 1986]

I think that is certainly not fair. People who steal this amount of money must be held accountable by returning the money to their owners completely and not only being held accountable for a small part of the money and imprisoned for a short period of time. It is a large amount of money stolen

[Honny143 13612]

Everyday so many scams we heard but I didn't heard any ponzi scheme return money for their users,its just starting in future also we see more scams, because in ETH platform so many ponzi schemes listed, and especially peoples never leave their greedy nature, this type ponzi schemes stolen their money its really good hear some ponzi scammers arrested but its not solution, peoples understand these schemes and didn't invest its permanent solution.

[Izeal 4404]

Yeah most of the sites are turning down into ponzi scheme as they can attract more and more members by giving more rewards for referral and ponzi scheme has both advantage and disadvantage. Advantage is that we can earn really good money in short period of time if referral works and disadvantage is they can be even scam in anytime.

[Ridam 7455]

In this type of act I don't think it's an appropriate to fine such small amount as it involved many inappropriate laundering. And all the money that they have scammed from their customers should be turned back. And the punishment should be increased so that we don't see such scheme in coming future. 

[Raqeebzy 6456]

On 8/4/2020 at 9:01 AM, BrolySSJ said:

In exchange for his plea, Silviu will receive a maximum jail sentence of five years and a quarter of a million dollar fine. Do you guys think this is fair? After stealing 722 million dollars, his fine is a quarter million?

Ponzi, ponzi, ponzi. It is fun watching them nabbed while it lasts. But the sentence though, it looks ridiculous. 722million can't be accounted for and he was asked to pay 250 thousand for a fine; probably after finishing the jail term, he will come back to enjoy the balance with his team. Some judgement just shouldn't be.

[Mehar446 280]

Yes there are a lot of news circulating about the man now a days. But its too late as the amount is so much big that community could not afford to loose it. That is why there must be some settelment.

[kyoukage01 3181]

Just a few guys caught and punished? And who knows if they are just fall guys, mere scapegoats? Everyone else involved should be apprehended and brought to justice. Then strip them of everything they have scammed, pay their victims back in full, and let them serve out their sentences. We'll call things even by then.

 

This issue then falls on the other mining pools. How legitimate are they? How do we know for certain? Are we 100% certain that the top mining pools are legit and not running some hidden Ponzi scheme as well?

 

[TimopheyKa 3900]

Yeah. This is really amazing... Amounts that are stolen by such methods, because people do not expect it at all? And they have to lose their money, it's so sad! I think that many people should protect their accounts well, and choose the right exchange, because not everything is true that fraud!

[Omar Ommeish 4872]

On 8/4/2020 at 4:01 PM, Moaz said:

I think that most of the ponzi schemes in the field of crypto are huge scams that steal investor money and this is very bad in the world of crypto, so we must be cautious and should not invest except in safe sites

you are right
In addition, we must warn beginners about these operations that cause them to lose their money and steal it by many fraudsters.

[cryptovlek 2597]

The Ponzis around crypto are never ending. I don't remember about this one but I remember there was one that were some arrests in the USA. I don't know what their plan is if they get caught and how they act later but I don't expect they will be allowed to hold any of the profits. 

[Captain Karim 0]

Certainly, this is not fair. A quarter of a million dollars is a fine for stealing 722 million dollars! , This judgment does not seem logical, when we have provisions, laws and penalties like this, this will encourage thieves to increase their crimes.

[Shaza Ahmad 1682]

It is not fair for this fraudster to be punished with a fine of a quarter of a million dollars for the theft of 722 million dollars, I believe that this penalty should be 1 billion dollars in order for it to be a deterrent punishment.

[Rosarvx 965]

many people were involved in this scam, so we must be cautious and not invest anywhere except in safe sites

[Cryptomint 433]

Thanks for sharing the bitclub is really a good pool and many miners are there which working with this pool and this is good they started the ponzi scheme

[Sykkuno 2887]

722 million USD is too much, as in all Ponzi structures they are greedy and can make a huge impact with the scam as it always collapses no matter the time needed, in this case it was some miner scam that given high returns as usual and when new investors stopped coming it crashed leaving most with lost funds.

I don't think that the accused people will make it out easily without having everything taken from them, scams and ponzis don't get away easily from the law anywhere.