During a video conference before U.S. District Judge Claire Cecchi, Abel confessed that he promoted and sold shares of BitClub Network even if he knew that it was a scam since its operators did not register the securities offering with the Securities and Exchange Commission (SEC).
He also admitted to taking money from investors in exchange for shares of the purported BitClub Network cryptocurrency mining pools. As part of the conspiracy, he told U.S. investors to use virtual private network (VPN) to conceal their IP addresses and prevent detection and regulation by U.S. law enforcement.
Abel promoted the BitClub Network cryptocurrency scam across the United States and in other countries in Africa, Asia, and Europe.
In July, Balaci pleaded guilty via video conference to conspiracy to commit wire fraud and to offer and sell unregistered securities.
The conspiracy charge to which Abel and Balaci pleaded guilty carries a maximum sentence of five years in prison and a penalty of $250,000. The tax laws violation to which Abel pleaded guilty carries a maximum prison sentence of three years and a penalty of $100,000.
