The US Department of Justice is reportedly set to drop charges against the founder of BitClub Network, an alleged cryptocurrency mining platform that allegedly defrauded investors of $722 million between 2014 and 2019.

The case files show that they are Matthew Goettsche’s lawyers he wrote on Wednesday to New Jersey District Court Judge Claire Cecchi, stating that the parties have “reached an agreement in principle” to resolve the outstanding allegations “but need time to finalize terms.”

Letter from Goettsche’s lawyers to New Jersey District Court Judge Claire Cecchi. Source: Bloomberg’s Law

The filing came after the Washington, D.C., Office of the Assistant Attorney General ordered the New Jersey Attorney General’s Office to dismiss the case against Goettsche with prejudice: According to to a Friday report by Bloomberg Law, citing two sources familiar with the matter.

Goettsche was indicted in December 2019 and was scheduled to go to trial in October for conspiracy to commit wire fraud and selling unregistered securities. A reversal of this decision would mark one of the more significant changes in the history of crypto law enforcement in the US, especially considering that three of his former colleagues, Silviu Balaci, Joseph Abel and Gordon Beckstead, have pleaded guilty for their roles in the scheme.

The potential reversal will occur after April 2025 note from Deputy Attorney General Todd Blanche, who ordered the Department of Justice to end its “regulation by prosecution” strategy against the digital asset industry.

Cointelegraph reached out to the Department of Justice for comment but did not immediately receive a response.

BitClub operated from April 2014 to December 2019, posing as a Bitcoin mining group where investors can buy shares and earn passive profits. BitClub allegedly misrepresented profit values ​​to investors and fabricated mining data to attract more investors to the program.

Related: Acting AG Todd Blanche confirms in DOJ report that “code is not a crime.”

Previous court records show Goettsche was arrested once described his model as built “on the backs of idiots”.

The Justice Department continues to root out cryptocurrency bad actors

In April, California resident Evan Tageman was sentenced to 70 months in prison for his role in a criminal enterprise that stole approximately $263 million worth of cryptocurrency from victims through fraud and social engineering hacks.

The Justice Department also froze more than $700 million in cryptocurrencies linked to investment fraudsters targeting Americans in April, while in February it seized nearly $580 million in cryptocurrencies linked to a crime group operating in Southeast Asia.

Characteristics: Will the crypto lobby’s $189 million campaign bring TRANSPARENCY across the line?