United States authorities arrested three men in an alleged fraud that raised $722 million from investors lured by fake bitcoin mining earnings, the Justice Department announced Tuesday.
Prosecutors described the scam as a “high-tech Ponzi scheme” run by the “BitClub Network,” which took money from investors and rewarded them for recruiting new shareholders.
From April 2014 through December 2019 the group attracted unsuspecting investors using fraudulent earnings purported to come from the network’s mining pool, according to the statement.
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