23 Jul '13, 4pm

SEC Charges Texas Man With Running Bitcoin Ponzi Scheme

The SEC alleges that Trendon T. Shavers, the founder and operator of Bitcoin Savings and Trust (BTCST), offered and sold Bitcoin-denominated investments, raising at least 700,000 Btc, or about $4.5 million at the time of the alleged take. That's about $63 million at today's prices. He apparently went by the handles “Pirate ” and “pirateat40 .” Here was the scheme: The SEC alleges that Shavers promised investors up to 7 percent weekly interest based on BTCST’s Bitcoin market arbitrage activity, which supposedly included selling to individuals who wished to buy Bitcoin “off the radar” in quick fashion or large quantities. In reality, BTCST was a sham and a Ponzi scheme in which Shavers used Bitcoin from new investors to make purported interest payments and cover investor withdrawals on outstanding BTCST investments. Shavers also diverted investors’ Bitcoin for day trading in...

Full article: http://www.businessinsider.com/sec-charges-texas-man-with...

Tweets

SEC charges Texas man with running Bitcoin Ponz...

cnbc.com 23 Jul '13, 5pm

WASHINGTON, July 23 (Reuters) - U.S. securities regulators on Tuesday charged a Texas man with running a Ponzi scheme by o...

SEC charges Texas man with running Bitcoin Ponz...

pcworld.com 24 Jul '13, 2am

A Texas man was charged on Tuesday in U.S. federal court with allegedly running a Bitcoin Ponzi scheme, allegedly siphonin...

SEC Charges Texas Man With Running Bitcoin-Deno...

sec.gov 23 Jul '13, 4pm

Washington D.C., July 23, 2013 — The Securities and Exchange Commission today charged a Texas man and his company with def...

SEC accuses Texas man of running Bitcoin Ponzi scheme

SEC accuses Texas man of running Bitcoin Ponzi ...

news.cnet.com 23 Jul '13, 5pm

A Texas man is in trouble with the feds for allegedly ripping off investors via a Bitcoin-inspired Ponzi scheme. The SEC a...

SEC accuses Texas man of running Bitcoin Ponzi ...

news.cnet.com 23 Jul '13, 5pm

A Texas man is in trouble with the feds for allegedly ripping off investors via a Bitcoin-inspired Ponzi scheme. The SEC a...

Bitcoin Ponzi Scheme Alleged by SEC in Lawsuit Against Texas Man

Bitcoin Ponzi Scheme Alleged by SEC in Lawsuit ...

bloomberg.com 23 Jul '13, 5pm

The U.S. Securities and Exchange Commission sued a Texas man over claims he operated a Ponzi scheme involving Bitcoin, the...

Texas man charged with running $60M Bitcoin Ponzi scheme

Texas man charged with running $60M Bitcoin Pon...

venturebeat.com 23 Jul '13, 7pm

The Securities and Exchange Commission has charged a Texas man with running a Ponzi scheme in which he raised “at least” 7...

SEC Says Man Fittingly Named 'The Pirate' Ran B...

wired.com 23 Jul '13, 9pm

In retrospect, the tagline on his Bitcoin Forum profile should have been a giveaway: The icon was a peg-legged pirate skel...

SEC Says Man Named ‘The Pirate’ Was — Surprise!...

wired.com 23 Jul '13, 11pm

In retrospect, the tagline on his Bitcoin Forum profile should have been a giveaway: The icon was a peg-legged pirate skel...

Bitconned: SEC busts alleged Bitcoin Ponzi scheme

money.cnn.com 23 Jul '13, 7pm

Physical bitcoins minted by a software engineer earlier this year. NEW YORK (CNNMoney) Add another entry to the list of mi...

SEC Cracks Down on Alleged Bitcoin Ponzi Scheme

entrepreneur.com 23 Jul '13, 9pm

In addition to the lawsuit, the SEC sent out an investor alert, warning about online fraud scams tied to Bitcoin. The agen...

Bitcoin used in Ponzi scheme, SEC says

investmentnews.com 23 Jul '13, 8pm

The Securities and Exchange Commission today filed its first investor fraud lawsuit involving the popular virtual currency...

Bitconned: SEC busts alleged Bitcoin Ponzi scheme

money.cnn.com 23 Jul '13, 7pm

Physical bitcoins minted by a software engineer earlier this year. NEW YORK (CNNMoney) Add another entry to the list of mi...

SEC brings charges as first-ever Bitcoin Ponzi scheme unravels:

SEC brings charges as first-ever Bitcoin Ponzi ...

rt.com 23 Jul '13, 11pm

SEC brings charges as first-ever Bitcoin Ponzi scheme unravels Get short URL Published time: July 23, 2013 23:36 Tags Cour...

Texas man raised over $4.5M in Bitcoin Ponzi sc...

arstechnica.com 23 Jul '13, 6pm

If you don’t follow the often-shady world of Bitcoin , you may not be familiar with Bitcoin Savings and Trust (BTCST), a v...