The US Department of Justice has asked a New Jersey federal court to dismiss the criminal case against Matthew Goettsche, the founder of BitClub Network, which is alleged to have defrauded investors of $722 million from 2014 to 2019.

Goettsche was indicted in December 2019 on charges of wire fraud and unregistered securities sales; his trial was scheduled for October. His attorneys filed a letter indicating an agreement in principle to resolve the matter, but said they need time to finalize the terms.

The request follows a directive from Deputy Attorney General Todd Blanche to the New Jersey Attorney General’s Office to seek dismissal with prejudice, according to Bloomberg Law. The directive aligns with a 2025 DOJ memo that directs the department to end its “regulation by prosecution” approach toward digital assets. Three former BitClub executives have pleaded guilty. DOJ has also secured forfeitures in related cases, including a $700 million seizure in April and a $580 million seizure in February. BitClub operated as a Bitcoin mining pool from April 2014 until December 2019, promising passive returns and allegedly falsifying earnings data to attract investors.

The court has not yet ruled on the dismissal request.