Will Investors See Their Funds Returned?
Earlier today it was reported that Russ Medlin, the former CEO of BitClub has been arrested in Jakarta, Indonesia. The American citizen has been wanted by the FBI for a year in relation to his relations to BitClub has been arrested by Indonesian authorities for suspected child sex crimes.
Russ has been arrested at his residence in Jakarta following complaints of three minors and is suspected of sex crimes.
The maximum penalty in Indonesian law for such crimes is 15 years in prison. Indonesia does not have an extradition treaty with the US, so Medlin might be able to avoid the FBI for the time being.
It has been reported that Medlin has previously been convicted as a sex offender and was charged with child pornography and sexual assault of a minor.
BitClub's $722 Million Dollar Scam
Between April 2014 to December 2019, the BitClub Network operated as a clever Ponzi scam. The company offered vert high returns on investment in exchange for shares in Bitcoin mining pools. Investors were also rewarded for referring others to the platform. The scam managed to fleece investors out of a whopping $722 million.
As per the U.S. Justice Department, 4 out of 5 people of interest have already been arrested for their association with BitClub. This includes Jobadiah Sinclair Weeks, Matthew Brent Goettsche, Joseph Frank Abel, and Silviu Catalin Balaci. All have been detained without bail, except for Balaci who faces extradition proceedings.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado