The US Department of Justice plans to drop charges against Matthew Goettsche in the BitClub Network case without the possibility of refiling them, according to Bloomberg Law, citing two sources and court documents.
The agency reports that the office of the US Deputy Attorney General has instructed the federal prosecutor in New Jersey to seek dismissal of the charges. The final terms are still being negotiated.
Goettsche is involved in the BitClub case, initiated in 2019. He was accused of conspiracy to commit wire fraud and selling unregistered securities.
According to the charges, from 2014 to 2019, BitClub solicited funds under the guise of bitcoin mining investments, promised returns, and encouraged participants to recruit new investors. Prosecutors claimed the project showed fictitious returns and caused investors $722 million in losses.
Following the charges during the first Trump administration, three co-defendants pleaded guilty. Goettsche’s case was prolonged due to lengthy negotiations and the analysis of about 2 million electronic records. In February, prosecutors insisted on a jury trial, while in June, the defense requested dismissal, citing a violation of the defendant’s right to a speedy trial.
Goettsche’s trial is set to begin in October.
According to Bloomberg, among those urging the DOJ to drop charges against Goettsche are lawyer and former “Apprentice” contestant Bradford Cohen and conservative activist Brett Tolman. Both were part of teams that helped clients secure pardons from Trump. One source suggested that the defendant deliberately engaged lobbyists connected to the current administration.
DOJ spokesperson Emily Covington stated that the department reviews cases that remain pending for several years, and this case has been ongoing for eight years. Covington dismissed claims that the decision was influenced by pressure from attorneys.
Earlier, after taking office in January 2025, Trump pardoned Silk Road founder Ross Ulbricht and granted clemency to former Binance head Changpeng Zhao. However, the president ruled out the possibility of pardoning FTX exchange founder Sam Bankman-Fried, who is serving a 25-year sentence for fraud.
