Criminals behind Bitclub-Network Investment Scam

last year

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.

  

FULL SCREEN

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.

FULL SCREEN

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"

SHOW VIDEO

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.

SHOW EARNINGS SHEET

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!

 

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

nice post

hope they got him for good

·

Actually they don't! He runs the BCN`s online webinars and business meetings.

Thank you! We need more analysis like this for other operations too! It is simple to identify "obvious" scams, but this is a little too elaborated and revenue numbers are not transparent to non members!

·

BCN is very professional and they have already made millions in BTC. Fact is, if you have spent 599$ on this system, you want your hard earned BTC back! Most BCN members simply don't care who they are dealing with, it's simply the money that counts and they can make a lot of money with the recruiting system.

I got hooked into this a little over a year ago. Never paid more than the $100 in club coin, I didn't join any of the expensive pools. I won't even bother trying to get that club coin back

·

you can trade your clubcoin at Bittrex what this guy writes is realy BS

Bitclub appears as one of the pools in https://blockchain.info/pools
Are you completely sure it's scam?

·

Steeme is out of his mind to call BCN a scam when many detractors have stated that they could not prove beyond any reasonable doubt that it is a scam and Steeme himself concedes that it is legitimately trading on BTC Pool. What a wasted write. So contradictory or should I say jealously jotted down rubbish to forever label a fellow trying to make a success after "a conviction."

Are we saying former convicts are not capable of transforming and running a business model? Was the conviction fraud related case? Actually he contradicts himself with that eye popping heading (Criminals Behind......) when in actual fact he could only name 1 individual as a former convict. Why call people "CRIMINALS" when currently they are neither living as fugitives nor serving any sentence? Now can he (the author) or someone else name any other criminal mastermind behind Bitclub? The article says Criminals. I guess reading between the line one can easily identify malice and jealous and down right inconclusive allegations.

I am unashamedly involved in BCN and I can testify that the Club or Company BCN is really helping many to become financially stable even make millions. The earnings are real and legally sound in many states world over.

In South Africa I have seen, in the 3 months that I have gotten involved with BCN, people's real earnings from actual mining profits plus the compensation plan that is unequaled. Myself too have experienced these earnings. There are also records of people who have worked their way up to earn shares withing BCN without actually paying hard cash for them for anyone to see for themselves how legit BCN is.

This guy (the author) is a real false alarmist who has a lot of time on his hands to wast it on nonsensical accusations like the above article.

To prove you wrong Steeme,

  1. Bitclub was launched in 2014 and 3 years on, it is still going strong, stronger and strongest.
  2. There is a commodity and it is Digital Currency Pool Shares (Bitcoin Pool Shares). Oversight on your part I hope.
  3. Bitclub will survive even without new members joining the company because of the innovative ideas that the entity introduces to the company like CoinPay etc.
  4. The shares in BCN are legit and will be sold out sooner or later.
  5. The shares actually grow and the shareholders may actually trade them off.
  6. Earnings are actually higher than what the author makes them out to be.
  7. Many investors have usually hit ROI withing their first year of purchasing shares. Some as early as 4 or 5 months. All this just from daily dividend earnings never mind the recruitment compensation plan earnings.
  8. The good news is that, even after making you ROI, you still have your shares intact and daily earnings even multiply. Where on earth can you find such an investment model like BCN? Very few entities I presume.

So join the club if you are a Network Marketing enthusiast because there is no any other Network Marketing Company with so much rewards as BCN.

Bravo Bitclub Network!!!

Kelvin Chinga-Proudly SA Achievers Bitclub Member

·
·

WELL DETAILED!!, the Poster must be out of his mind!!

Thank you @delice, God bless you

·
·

yes he does not know how to build a network ROGER VER also deleted his tweet about bitclub being a sceme https://www.facebook.com/XoCoHealthNL/videos/g.418965361803600/1522064351149579/?type=2&theater

·

It's not. I use the program and it is solid.

·
·

God Bless you.

·
·

Me too!
I also can say its legit.

·

Thats a Bullshit Post!!.. His analysis is not worth it @reig3790

·
·

Yeah BCN looks like a complete scam.

·

He only invested 500 dollar ..just buy a miner for 500 dollar or a complete miner you dont even make a lot of bitcoin with a 2500 dollar miner ... just see this video about ROGER VER who deleted his tweet about bitclub network being a ponzie sceme https://www.facebook.com/XoCoHealthNL/videos/g.418965361803600/1522064351149579/?type=2&theater .... and yes if you dont understand this network business you need to read the backoffice info about bitclub network... i can show anyone that bitclub network is working ... so if you are intrested skype me Bigone0007 and i can show you the backoffice and more from a 500 dollar investment i made 0.5 bitcoin in 14 months .

Great article...I got sucked into this program about a month ago, bought a $500 pool....based on my calculation in Excel and payouts to my wallet thus far, it will take me 1186 days to get my original 0.198 btc back. Seems like all the positive reviews are based on the price of btc going up in US$ terms. My conclusion so far: you're make more US$ or whatever fiat currency if you simply buy bitcoins with your fiat and hold them.

You are mixing up 2 things ... there is a scam bitclub that uses the bitclub name ... did you see this video with Roger Ver deleting his tweet about the fact bitclub is a scam? https://www.facebook.com/XoCoHealthNL/videos/g.418965361803600/1522064351149579/?type=2&theater . I joined bitclub march 2016 with 3 accounts where i bought 3 times 500 dollar contract where i compound daily and earning 0.9 BTC each 4 days thats only growing and growing at the moment . You know if it was a Ponzie ROGER VER never deleted his tweet about BITCLUB NETWORK !

That's all I needed to hear! I'll keep my BTC. Thanks

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.

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

·

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.

Fact upon fact is incorrect here. FUD spreaders like you are the reason an unedited Steam can never be trusted and will become a graveyard for greedy crypto wannabes

Why not just buy bitcoin instead of doing this program? I think it will be better.

·

Because you're buying mining machines for a fraction of the cost that'll generate you way more Bitcoin in the long run instead of just buying and holding Bitcoin. It's a no-brainer and BCN is making investors very rich worldwide. If you're interested in learning more about the club, feel free to email me and I'd more then happy to educate you on it and help you along. MyMission2Millions@gmail.com You got my word, it's 110% legit. Read my comment below...

HAHAHA - WOW, you might be the dumbest jacka*s on the planet who knows ABSOLUTELY nothing about blockchain and BitClub Network. 1) If this is a Ponzi scheme you moron, then tell me how we have LEGITIMATE 3rd party validation on the blockchain and are the 8th largest mining pool in the world? PROOF: https://blockchain.info/pools Being a Ponzi scheme would be VERY difficult if we are listed on BlockChain.Info and one of the most reparable mining operations in the world. 2) Also, if we have no physical product, then please (pretty please) tell me how several of my affiliates have been on a physical tour in Iceland at one of the multiple mining facilities we have in the world, and have seen, touched and taken photos of their personal mining equipment? Guess you didn't know that before you decided to write this pathetic ignorant article, did you? 3) Tell me how one of our Co-Founders not only buys our ASIC mining chips from Richard Branson's multi-million dollar company, BitFury, but also is very good friends with him as well. Do you think for a second that Richard Branson would risk ruining his billion-dollar empire dealing with a colleague who was involved in a Ponzi scheme. No, DO NOT think so! 4) Your back office, shows you EVERY single dollar in BTC that your mining machines are producing for you. There's nothing wrong with reinvesting a portion of your money back into the pools, due to the fact that it's used for upgrading our mining equipment, technology, and for purchasing faster more efficient mining chips. With that being said, ladies and gentlemen reading this article, BCN is NOT a Ponzi scheme... If you're foolish enough to believe this moron then so be it... This is probably not for you if you're the type of person who believes every single (non-credible) article on the internet. This is the kind of putz that would write an article about, how he found a cure for aids and posted it on all of his social media feeds. STOP reading garbage on the internet. These people are haters and bring ABSOLUTELY no value into this world. I'm not saying don't do your due diligence, by all means definitely do so, but stop the madness and believing everything you read on the internet. It's poison to your brain... Damn shame there's people out there like this 'tool' ruining the reputation of rock solid companies like BCN, working hard to make a huge difference in this world.

Thats all I needed to hear! I'll keep my BTC. Thanks

OMG now they are in Romania and trying to get "clients". How do I get rid of them? What should I/we do? All happening on facebook