DOJ Retreats on BitClub Prosecution as Circle Wins Trust Bank Charter

The US Department of Justice (DOJ) has reportedly retreated from its prosecution of Matthew Goettsche, one of the operators behind BitClub Network. According to Bloomberg Law, DOJ leaders directed New Jersey prosecutors to dismiss the case with prejudice. This decision comes after Deputy Attorney General Todd Blanche's April 2025 digital-asset enforcement memorandum, which prioritized fraud causing direct investor losses over regulatory classifications.

Goettsche faced wire-fraud conspiracy and unregistered-securities charges for allegedly selling fraudulent cryptocurrency-mining investments between April 2014 and December 2019. The indictment accused BitClub Network operators of raising at least $722 million, with several participants already admitting related offenses.

In a separate development, New Hampshire's Executive Council rejected a proposed $100 million bond authorization that would have used Bitcoin as collateral. The council voted 3-2 against the financing plan, citing concerns over collateral volatility and transaction structure.

Circle, however, received final approval for a national trust bank charter from the Office of the Comptroller of the Currency. The approved institution will provide fiduciary digital-asset custody for Circle and affiliated companies, with reserve-management capabilities potentially following under its framework.