BitClub Cryptocurrency Mining Facility Scam Coming to Montana:

BitClub a $722 million Bitcoin (BTC) mining farm is suspected of being a ponzi scheme scam. Recently it was reported that Kevin Washington, a minority owner of Bitcoin mining facility CryptoWatt seeks receivership. This happened after its majority owner Matthew Brent Goettsche was indicted for what federal prosecutors believed to be a $722 million Ponzi scam involving BitClub, a Bitcoin investment club.

CryptoWatt minority owner wants receivership of now idling facility

Last year Kevin Washington, CryptoWatt minority owner filed a request for emergency hearing for receivership of a now dormant Bitcoin mining facility CryptoWatt in Butte, Montana. As its majority owner Goettsche was arrested two weeks ago for being a leader in what is believed to be an intricate Ponzi scheme scam, BitClub, CryptoWatt’s 32,000 Bitcoin mining servers are idle.

Goettsche also was sued for scam and fraud for selling unregistered securities. Recently Rick Tabish, president and CEO of FX Solutions has also filed a lawsuit against Goettsche, claiming that the company will lose millions due to the CryptoWatt’s neglect.

He says that after the arrest CryptoWatt was closed and its 32 employees are on a furlough, and then “some $84,000 in checks from CryptoWatt to his company, FX Solutions, primarily for payroll for employees, have been returned for insufficient funds.” Moreover, the company’s electrical power contract with Northwestern Energy is in arrears, which means that CryptoWatt is in danger to stop operating completely.

Now CryptoWatt is still worth around $68 million, although more that $140 million has been sunk into this supposed ponzi scheme thus far. FX Solutions also planned to get two more mining facilities in the state online, but now, as the situation is unstable, it is doubtful.

Goettsche gained a controlling interest in CryptoWatt in the middle of 2018, when BitClub was still on its peak, paying $1.5 million out of $5 million total.

By requesting emergency hearing Kevin Washington seeks to eliminate any connections between CryptoWatt and BitClub, and it seems that Goettsche is the only one who failed to fulfill his promises. However, Goettsche is currently the only person who can get the facility back in operation.