Utah businesses eyed by authorities over funds from alleged BitClub scam

Authorities want to seize $22 million from prominent businesses in Utah that reportedly received investments from BitClub Network, a bitcoin mining firm accused of running a $722 million crypto scam back in 2019.

According to the Utah Investigative Journalism Project, court documents allege that an entrepreneur by the name of Gavin Dickson invested funds from the defunct bitcoin mining company into several companies across Utah through at least one of his firms. However, the Department of Justice hasn’t pressed charges against him.

Dickson is a prominent entrepreneur in Utah and has purchased restaurants, islands, and helped start charities. 

Authorities are now looking to seize investments worth $22 million from: 

• Kiln, a series of shared office spaces across Utah and Colorado ($8.4 million).
• The Grid, one of the longest indoor go karting tracks ($1.6 million).
• Evermore Park, an immersive theme park in Salt Lake City ($500,000).

The BitClub Network promised an opportunity to invest in a crypto mining pool (a group of bitcoin miners working together to earn rewards). They allegedly lulled investors with fake bitcoin mining profits that exaggerated the profitability of these bitcoin mining pools.

Read more: Man scammed by fake bitcoin hitman after curse fails to deter love rival

As part of the scheme, investors would then be encouraged to recruit others. Court documents reveal how BitClub scammers described their target audience as a “typical dumb MLM investor.” The entire alleged scheme was able to extract $722 million.  

Dickson named in BitClub documents

Dickson owns BitWealth Holdings and BitWealth Investment. Dickson stated in the court documents filed against Goettsche that he did in fact invest money from BitClub through some of his companies. Kiln was one such investment — BitWealth put $8.2 million into the office space company.

A statement from Kiln reads: “In 2018, Kiln received an investment from BitWealth. We are aware that Mr. Goettsche, who invested in BitWealth, has been indicted for his involvement in a separate, unrelated business called BitClub.” 

“BitWealth holds only a minority equity position in Kiln. The case against Mr. Goettsche and BitClub is unrelated to Kiln and has no impact on our operations.”

Dickson was also named in a search warrant against Goettsche. The warrant describes how Goettsche received BitClub funds through accounts owned by Dickson alongside a company called Most Amazing Box LLC, also owned by Dickson. 

In addition, Goettsche owned a private jet that was apparently purchased by Most Amazing Box LLC and funded through a Singapore cryptocurrency exchange, according to 2020 filings. 

The Utah Investigative Journalism Project reached out to Dickson and Goettsche’s attorneys but have received no response.

For more informed news, follow us on Twitter and Google News or listen to our investigative podcast Innovated: Blockchain City.

   
Source