Bitcoin fraudster … how did he cheat investors with $ 722 million?

Joseph Frank Adele, nicknamed the California Man, pleaded guilty to a cryptocurrency mining scam of at least $ 722 million, which plaintiffs said was a “high-tech pyramid scheme” scam.

Adele acknowledged that he had conspired to offer and sell unregistered financial instruments, and to register with false tax data on the return as part of the “BITclub” dog house network.

And the legitimate mining process of Bitcoin enables the “miners” to win new Bitcoins by using special software to solve complex algorithms. Bitclub has requested money from investors in exchange for shares through cryptocurrency mining pools, and they are rewarded if they attract more investors, in what looks like a cluster network.

The firm ran from April 2014 to last December, according to US Attorney General Craig Carpento in New Jersey.

Adele promoted his scheme internationally, the government said, and he was charged with four others last December.

And recently the so-called Ponzi scheme or hierarchical network has spread in the field of digital currencies, with projects such as BitConnect and OneCoin costing investors billions of dollars.

The activity of these projects peaked in 2017 and 2018, during the spread of initial coin offerings, and the people or team managing those schemes was unknown. The attack by the federal or state police began in 2018.

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