Criminals behind Bitclub-Network Investment Scam
One of the largest Ponzi scheme operations, called BitClub Network (BCN) with thousands of investors worldwide, is obviously run by a gang of international criminals.
The unofficial head of BCN seems to be Russ Medlin, a U.S. citizen and known sex-offender. Medlin was convicted for attempted rape, possession of child pornography and numerous other crimes.
BCN and Medlin are linked by numerous Youtube videos and Blogposts stating, that he is the "Master Distributor" or even the unofficial "owner" of the scheme. Medlin also stated in the videolink below: "everyone is in my downline"
What is BitClub Network all about?
BCN claims to be a Bitcoin mining operation where users invest money in order to get a share of the revenues generated by the BCN mining pool. A member can also generate revenue by sponsoring/referring new members to join BCN.
BCN operates totally untransparent without any official leadership or security for invested funds. BCN is run from a number of different websites (https://bitclubnetwork.com/)
The "company" hides behind statements like:
"...BitClub is not owned by any single person or entity, we are a team of experts, entrepreneurs, professionals, network marketers, and programming geeks who have all come to together to launch a very simple business around a very complex industry..."
found on their website
What is a Ponzi scheme?
A Ponzi scheme is an illegal investment operation where the operator pays returns to investors with money paid into the operation by new investors and NOT from legit profits earned by actual product or service sales.
In other words: New members finance the payouts for all the existing members. A Ponzi scheme is usually working, as long as new members join in and old members are willing to do what it takes, to get their money back.
This can go on and on and on for weeks, months or even for several years, until no new members join in or the money simply runs out.
Usually these schemes shut down without any warning, leaving burned and frustrated "investors" behind, while the money is gone with the wind, making the owners rich!
The Ponzi is perfectly organized
The BCN-Scam is well organized, as the BCN mining pool actually exists. The participating members are just not paid from the mining operations Block-rewards.
Payouts are minimal and participating club-members need to pay a high fee, if they want to get their earned funds paid out, unless they have at least earned 2 BTC.
The Black-Hole of Money
Investments are valid for only 600 days and then simply vanish into BCN`s "Black-hole of money".
Between 30 - 50% of all earnings are forced to be "reinvested" into the system to refinance the operation. Another indicator for a Ponzi scheme.
There is NO actual product behind bitclub network, as the money is made by recruting others into the system.
The club explains their "product" to be the mining operation and they claim, that the participants should own a piece of the mining hardware, even though these participants are not allowed to know
1. what equipment they purchase
2. where their bought equipment actually is located due to "legal issues"
3. which person or company they are paying to.
It is officially possible, according to BCN`s website, to get your hands on the hardware, if the member pays a one-time fee. I assume, that this fee is very high and will not cover the investment costs in any way. They might even ship some old Antminer with no actual value at all.
Where is the proof ?
I have been in the legit Network Marketing industry for a very long time.
YES, Network Marketing is actually a legit business form, though widely abused by criminals, hiding behind great success stories and achievement by Tupperware, Amway, Herbalife, Avon, Mary-Kay and others.
Ponzi scheme, pseudo MLM`s actually harm these legit companies a lot. Damaging their reputation and image in the public, stealing customers away from real products delivered by real people. No matter if these products are digital, paid with crypto or physical paid with crypto or fiat currency.
I decided to get more information around BCN from the inside to get proof-of-work in crypto terminology.
I really wanted to see how the system operates and what actually is or is not paid out, as claimed on BCN`s website.
How much money is involved?
To be a member of BCN you have to pay 99$ worth of Bitcoin for your membership-fee. This fee gives you access to the BCN-platform to be able to invest in the mining operations. The fee grants you access to:
1. Training and education about Bitcoin mining
2. Full access to the exclusive Bitcoin Mining pools
3. ClubCoin Opportunity – Get Free ClubCoin (worthless noname coin)
... in other words: YOU GET NOTHING!
A registered member can choose between 3 pools. Pool-1 costs you 500$, Pool-2 costs you 1,000$, Pool-3 costs you 2,000$ and... if you have too much Bitcoins (and if you are totally nuts), you can "invest" in the so called "Founder pool" which costs you 3,500$ worth of Bitcoins.
-> To all Steemians: Think about how much steem-power you can buy for 3,500$.
I decided to test BCN with Pool-1 for a total of 599$ including the membership-fee. A total waist of money, but hopefully it can spare others to be as stupid as I was.
How much do they pay you?
BCN doesn't pay anything for the first 10 days! From day 11, they pay around 0.17$ (0.000305 BTC) or 0.85% monthly on average.
Sounds decent? Think again: To withdraw the money lossless, it will cost you money, unless you have already earned 2 BTC (around 1,150$).
To make 2 BTC with Pool-1 will take approximately 18+ years, unless Bitcoin reaches 10,000$, than it will only take you... 18+ years.
Is ROI (Return of investment) even possible with BCN?
The simple answer is: NO WAY!
If you join the 500$ pool like me, you will get 50% of your share from the pool. The rest will be used to "...fund the mining operation and to purchase additional mining shares...”.
If you decide to include the meaningless membership-fee, you will need to make at least 0.99$ on a daily basis to break even after 600 days (the pool-lifetimes at BCN).
Since you are keeping only 50% of the profits, this means you need at least $1.98 daily revenue to break even. I make around 0.34$ daily, which equals a ROI after 9+ years!!!
If the company, sorry the club, still exists then and the profits stay the same,
I can expect some profits in 2026.
If you argue against this and your argumentation is based on Bitcoin’s rising price in the next years to come and you assume that the invested $500 will give a profit, think twice.
You could just buy and hold Bitcoins or even better Steem and you will make that profit, too.
The companies different websites look pretty nice, as did ZeekRewards, another large scale Ponzi-Scam, obviously linked to the same group of people.
Be aware! Even if you make some money in the process, the question is:
Do you want to finance a convicted criminal or gang of criminals?
I DO NOT!
Why on Earth would you say these things? Do you have any evidence for this?
Evidence? Are you blind? Plenty of evidence in this post. You are obviously sucked into BCN already.
Well I have been doing great so far. Had to be in it to truly know it.
Other steemit post show positive reviews and they are all over YouTube. Some people are just born stupid, and no one can fix that.
BCN is completely fine and a terrific investment!
Yes it is, it is not the best but it is terrific depending on the level one chooses to invest at in BCN.
nice post
hope they got him for good
Actually they don't! He runs the BCN`s online webinars and business meetings.
Reality in the present day have disproven a lot of your idea? I am not having a go... Just that what you say is not true with what bitcoins have done now...
I am surprised why people call this a ponzi scheme... It is a long standing company. I have recently joined. I have referred noone as I do not like that sort of activity. And I am earning everyday. In time I will set up my own mini network under myself and earn more. This is one of 2 systems I am a part of that have done very well for me.
A company? Really? It is a scam, just like bitconnect was. They just keep running this ponzi for as long as possible.
The question is: are you willing to fund convicted pedofiles or not?
What has pedophiles have to do with that? Never mind, I have answered you in other questions. All the best.
Numbers, go to calculation of mining profits vs buying btc directly... ROI is too long
Company? they're not legally registered anywhere.. so they're not, and as they said in their statement, there is no "owner" that in itself means they have no legal responsibilities, meaning you can/will lose everything you put in and only get a minuscule amount per month
I have found that you are absolutely right if you only have one mining pool. But the mining coupled with a network is a different story.
Nice post, and i feel sorry for the angry guy XD I don't think that bashing people like that, someone's going to care about your thoughts
Wow. I can really tell you only wrote this post to get attention. Obviously you don't know shit about network marketing and even less about Bitclub Network. I guess that is why you don't even have a profile picture.
Yes all BS article
Maybe bigpapa likes littlebabes, too.
BCN = Busted Crime Network
Are you blind? Some people eat dumb pills for breakfast and signup for BCN, some think twice and decide not to. Those who don't consider not to fund convicted pedofiles and just hodl.
Marketing ?? You mean plain shilling in their telegram or whatsapp group?
Truth is, BCN does provide the opportunity to be part of miner pool. Too bad there's to many copycat but some of us do have make profit by joining the network. Still have time before the halving!
Buen Post, por la exactitud de tus números. Gracias.
I saw Jeff Berwick interviewing one of their guys, so I decided to do a google search . When I typed in Bitcoin club in google, the top search fills in Bitcoin club scam and this is how found this post. I should've known better that this is a scam if Jeff Berwick is interviewing them
You said Bitcoin club but it is Bitclub Network. It´s not a scam. He´s lying.
I am not lying, you just can't face the fact, that you have put your money in this black hole with minimal returns. Do your own research and don't call me a liar. I documented everything and even wasted 599$ worth of bitcoin on this crap. Would be worth 10.000$ today!
Is Jeff a scammer can you justify.
There's a video of Jeff drunk trying to explain to a client why he can't get the foreign passport for them like he promised. Have a look at it - should not be hard to find. I was drinking the coolaid of Jeff then I realised there was a problem. After that I then dug a bit deeper into Bitclub and found some doubts.
I saw that video awhile ago. The the truth is they were both doing something a little bit shady. The client was trying to buy a secondary passport and Jeff Berwick's contacts were sort of shady politicians. But to be fair both Jeff and the client claim to have anarchist values so if they view a law as unjust or useless an anarchist will just ignore it.Best case scenario Jeff was trying to sell a passport and the contact he had screwed Jeff. which is possible when defying laws you don't agree with and counting on contacts within the system
110% not a scam artist!
Berwick is not a scam artist. He might prefer to recommend investments in which he gets a cut or a kickback, but that same behavior occurs with all politicians, Fortune 500s, and probably your Uncle Ted. You should do your own due dilligence with any investment, but clearly this is no different to any other Wall Street offering, and probably more legit.
www.galtsgulchchile.com/jeff-berwick-exposed/ Berwick is a complete conman. He sabotaged the GGC project, to then claim he was a victim of it and defrauded, along with a handful of corrupt clients of GGC and their Chilean counterpart who forged signatures, falsified documents and aided Berwick, and the handful of corrupt GGC clients in stealing, or destroying, millions of dollars in GGC property from Oct 2014 through April 2015. Typical of crooks, who carry out crimes, to then immediately deflect their actions onto others, while playing the victim card. They seized illegal possession of GGC, to then destroy it, two weeks after GGC obtained subdivision approvals to complete 80% of the project by the end of 2014. The guy is a conman and pathological in many aspects of the word. Him and his handful of corrupt cohorts (EJ Lashlee (Ponzi scheme felon), Josh Kirley (derivatives trader), Thomas Baker (corrupt military cop), Chris Serin (mining company saboteur) and a few other shady characters will have a database of their internal emails, falsified documents, timelines, maps, videos and more released soon. They bribed some of the past attorneys who were paid to defend GGC. We have the bank transfer receipts, which are being released along with a stack of other evidence to the courts, and then publicly. The 'truth' movement, and the crypto movement has the attention span of a flea for the most part and truth means nothing...only memes and bullshit. Cheers. FYI. I'm the guy who created the legit businesses that Berwick made money on, and he then screwed me, and many others, out of. His emails berating libertarians and others will be fun reading material for all of his idiot apologists and sophomoric readers.
Huge mistake your making. This article is nothing but lies. You're letting a pathetic idiot who knows absolutely nothing about the industry or BCN dictate your life. WOW! BCN is 110% a legitimate mining operation with 3rd party hash rate validation on the blockchain. Here's the proof: https://blockchain.info/pools Visit my site if you want to learn more and how to become very successful in this industry. www.MineMeBitcoin.com
It is a mining operation abd a big mining pool, but still run by criminals and a ponzi.
really?, what the ROI for a 500 package? at 10k BTC price?
Correct, but Jeff might not know. It seems most people don't care. If it pays large commissions everthing else is forgiven, even child abuse and rape. The guy behind did his time, now everything is ok. Well it is NOT!