US arrests three in alleged US$722m cryptocurrency fraud

[NEW YORK] US authorities arrested three men in an alleged fraud that raised US$722 million from investors lured by fake bitcoin mining earnings, the Justice Department announced on Tuesday.

Prosecutors described a "high-tech Ponzi scheme" at the "BigClub Network," which solicited money and rewarded investors for recruiting new shareholders.

Justice Department officials said two other defendants remain at large and their identities are being withheld.

AFP