Three men have been charged by U.S. prosecutors for their role in operating BitClub Network, an alleged crypto Ponzi scheme that is said ot have defrauded investors of $722 million.

According to a report by Bloomberg on Dec. 10, the men have been operating BitClub Network since 2014. The platform solicited funds from investors in exchange for shares in a mining pool, in addition to providing rewards for referring new users. 

U.S. Attorney Craig Carpenito of New Jersey announced in a statement that the three men were arrested Dec. 10 and charged with conspiracy, while two more undisclosed defendants remain at large. 

One of the defendants, Matthew Brent Goettsche, was reported as referring to potential BitClub Network investors as “dumb” and “sheep.” He went on to say that the platform was built on “the backs of idiots,” and that the scam would allow him and his co-conspirators to retire rich.

While all three men have been charged with conspiracy to sell unregistered securities, Goettsche and fellow co-conspirator Jobadiah Sinclair Weeks are facing additional charges on conspiracy to commit wire fraud.

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