24 Jul '13, 11am

Bitcoin: man charged over alleged multimillion-dollar Ponzi fraud

Bitcoin: man charged over alleged multimillion-dollar Ponzi fraud

Bitcoin: a Texas man has been charged over an alleged Ponzi fraud. Photograph: George Frey/Getty Images The digital currency Bitcoin may have its own Bernie Madoff. An investment scheme promising a 7% weekly return was in fact a fraudulent "Ponzi" scheme, in which a Texas man used new investors' money to pay interest to existing ones, according to charges filed by the US Securities and Exchange Commission. Trendon T Shavers, from KcKinney in Texas, was the founder and operator of "Bitcoin Savings and Trust" (BTCST), allegedly raised a total of 700,000 Bitcoins in 2011 and 2012 – then worth about $4.5m – for his scheme, claiming that he made his profits on market arbitrage. Using online handles such as "Pirate" and "pirateat40", Shavers sold "investments" to people around the US. He claimed that "I have yet to come close to taking a loss on any deal" and that the "risk is a...

Full article: http://www.guardian.co.uk/technology/2013/jul/24/bitcoin-...

Tweets

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...

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...

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...

"Man charged for running $4.5 million Bitcoin P...

theverge.com 25 Jul '13, 3am

Some promises are too good to be true. The Securities and Exchange Commission has charged a Texas man with operating an il...

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...

Texas man charged with running $4.5 million Bitcoin Ponzi scheme

Texas man charged with running $4.5 million Bit...

techspot.com 25 Jul '13, 10am

The Securities and Exchange Commission has charged Trendon T. Shavers with running an illegal Ponzi scheme using Bitcoins....

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...

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

"Bernie Madoff of Bitcoin" charged in $4.5M Pon...

dailydot.com 23 Jul '13, 7pm

Trendon T. Shavers has been called the Bernie Madoff of Bitcoin . The U.S. Securities and Exchange Commision (SEC) charged...

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...

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 Charges Texas Man With Running Bitcoin Ponz...

businessinsider.com 23 Jul '13, 4pm

The SEC alleges that Trendon T. Shavers, the founder and operator of Bitcoin Savings and Trust (BTCST), offered and sold B...

Texan Charged In Bitcoin-Denominated Ponzi Scheme

zerohedge.com 23 Jul '13, 4pm

SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme The Securities and Exchange Commission today charged a...

Texas man charged with running a Bitcoin ponzi scheme duped investors: "It's growing, it's growing!"

Texas man charged with running a Bitcoin ponzi ...

gawker.com 23 Jul '13, 7pm

The SEC alleges that Shavers promised investors up to 7 percent weekly interest based on BTCST’s Bitcoin market arbitrage ...

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...