BitClub ‘High-Tech Ponzi’ of $722 Million Draws Guilty Plea (2)

A California man pleaded guilty to a cryptocurrency mining fraud of at least $722 million that prosecutors said amounted to a “high-tech Ponzi scheme.”

Joseph Frank Abel, of Camarillo, admitted he conspired to offer and sell unregistered securities and subscribed to a false tax return as part of the BitClub Network, the U.S. said in a statement Thursday.

Legitimate Bitcoin mining is a process through which “miners” can earn newly issued Bitcoins by using special software to solve complex algorithms. The BitClub Network solicited money from investors in exchange for shares in purported cryptocurrency mining pools and rewarded them for ...