23 Jul '13, 7pm

"Bernie Madoff of Bitcoin" charged in $4.5M Ponzi scheme

"Bernie Madoff of Bitcoin" charged in $4.5M Ponzi scheme

Trendon T. Shavers has been called the Bernie Madoff of Bitcoin . The U.S. Securities and Exchange Commision (SEC) charged him on Tuesday with defrauding investors in a Ponzi scheme worth 700,000 bitcoins, or more than $4.5 million, based on the average price of bitcoins in 2011 and 2012 when the investments were made. Today, that amount would be worth $66,910,000. As the virtual currency grew in visibility and value in 2011 and 2012, Shavers opened the Bitcoin Savings & Trust (BTCST) in November 2011, an invite-only investment plan run under the name “Pirateat40.” The plan promised an alternating variety of big gains, including a 1 percent daily return and a 7 percent weekly return on deposits of more than 25,000 bitcoins “based on BTCST’s Bitcoin market arbitrage activity, which supposedly included selling to individuals who wished to buy Bitcoin “off the radar” in quick...

Full article: http://www.dailydot.com/business/bitcoin-ponzi-scheme-sca...

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gawker.com 23 Jul '13, 7pm

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guardian.co.uk 24 Jul '13, 11am

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entrepreneur.com 23 Jul '13, 9pm

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theverge.com 25 Jul '13, 3am

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pcworld.com 24 Jul '13, 2am

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cnbc.com 23 Jul '13, 5pm

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Bitcoin Ponzi Scheme Alleged by SEC in Lawsuit Against Texas Man

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bloomberg.com 23 Jul '13, 5pm

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

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SEC accuses Texas man of running Bitcoin Ponzi scheme

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

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techspot.com 25 Jul '13, 10am

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