13 Aug '13, 5pm

Bitcoin Scheme Worthy of Charles Ponzi | by @SocialGameLaw

Bitcoin Scheme Worthy of Charles Ponzi | by @SocialGameLaw

On July 23, 2013 the Securities and Exchange Commission ("SEC") announced it was bringing charges in a Texas federal court against Trendon Shavers for allegedly using a Bitcoin Ponzi scheme to defraud investors between September 2011 and September 2012. For those who may not know, Bitcoins are anonymous, decentralized, non-government-backed electronic currency. Bitcoins were originally created by an unknown hacker in 2009 as a worldwide payment method with low processing costs and have become a much ballyhooed currency among the Technorati. The SEC is accusing Mr. Shavers, using the online handle "pirateat40," of advertising the Bitcoin Savings and Trust and accepting 700,467 Bitcoins, worth approximately $4,592,806, as investments while promising a 7% weekly return. Mr. Shavers allegedly promised to pay such returns to investors by trading the Bitcoins online. In the SEC'...

Full article: http://www.jdsupra.com/legalnews/bitcoin-scheme-worthy-of...

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