BitClub Network
Rug PullFund · born 2014 · ✝ 2019
A $722M fake-mining MLM dressed up as a bitcoin pool.
BitClub Network was a multi-level-marketing scheme posing as a Bitcoin-mining pool. In 2019 the US DOJ charged its operators with a $722M fraud, alleging fabricated mining 'earnings' and payouts for recruiting new investors.
- Peak
- ~$722M taken in
- Cause
- Rug Pull
- Year of death
- 2019
☠️ Cause of death
Operators fabricated mining returns and paid existing members with new recruits' money in a classic Ponzi-MLM structure.
📓 Lessons left behind
- —Recruitment-based 'returns' are a Ponzi tell.
- —Demand verifiable proof of real mining output.
- —Guaranteed crypto yields are a red flag.
🌱 The idea that survived
Verifiable mining
Underscored demanding on-chain proof of actual hashrate and rewards over self-reported figures.
#ponzi#mlm#mining#fraud