$40.7 Million Fine: Judge Rules Ponzi Scheme on Bitcoin Savings and Trust

$40.7 Million Fine: Judge Rules Ponzi Scheme on Bitcoin Savings and Trust

There are several high profile criminal and civil cases involving Bitcoin in the United States. In some of these the prosecution is clearly applying law to Bitcoin transactions that might not apply. But in the case of Trenton Shavers and his Bitcoin Savings and Trust this turned out not to be the case, even though his attorneys tried to make it look like it. A US Federal Judge has ruled in case is SEC v. Shavers et al, U.S. District Court, Eastern District of Texas, No. 13-00416 that the Bitcoin Savings and Trust was indeed a criminal enterprise and Shavers was guilty of running a Ponzi....


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A Texas man charged with defrauding consumers through an illicit investment vehicle has been ordered to pay more than $40m in fines by a federal judge. The Thursday ruling brought to close a case launched last July that drew headlines at a time when many in the mainstream US media were only first learning about bitcoin and its related technology. Trendon Shavers, the founder and operator of Bitcoin Savings and Trust (BTCST) had reportedly accrued more than 700,000 BTC in customer funds, worth roughly $64m at the time of his arrest. US Magistrate Judge Amos Mazzant wrote: "The uncontested....

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