Man Who Ran Bitcoin Ponzi Scheme Fined $40M

Man Who Ran Bitcoin Ponzi Scheme Fined $40M

Trendon Shavers, the man who the Securities and Exchange Commission (SEC) said was running a bitcoin Ponzi scheme, has been ordered to pay a $40 million dollar fine by U. S. Magistrate Judge Amos L. Mazzant for his founding of the "Bitcoin Savings and Trust (BTCST)" organization, which was nothing more than a scam for its users. From a complaint filed by the SEC last year (as noted by Inside Bitcoins): From at least September 2011 to September 2012, Shavers, operating under the Internet name "pirateat40," offered and sold BTCST investments over the Internet, raising more than 700,000 BTC....


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World Bank: Bitcoin Is Not A "Ponzi Scheme"

Ponzi scheme: A fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Many of the under-informed, the under-educated, and the under-control masses have lobbed this parting shot at Bitcoin over the years. People tend to fear things that they don't understand, and will hide behind that fear with blind attacks that sound right, but are just as ignorant, if not more so. Bitcoin clearly does not fall into the definition of a "Ponzi....

"Pirate@40" Arrested for Bitcoin Ponzi Scam

Charles Ponzi. Trendon Shavers, aka "Pirate@40," was arrested this morning on securities fraud and wire fraud charges stemming from his involvement in a Bitcoin-related Ponzi scheme. A Ponzi scheme is a fraudulent investment operation where the operator pays returns to its investors from new capital paid by new investors, rather than from profit earned. The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920. Shavers was the founder and operator of Bitcoin Savings and Trust (BCS&T), which offered and sold Bitcoin-based investments through the Internet.....

Bitcoin Ponzi Scheme Perpetrator Fined $40 Million

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....

SEC Files Charges Against Digital Currency Ponzi Scheme Company

The US Securities and Exchange Commission (SEC) filed fraud charges against the operator of an alleged digital currency Ponzi scheme. The US regulator also froze the assets of individuals connected with this purported scam. According to the SEC press release, California resident Steve Chen and 13 California-based entities, including the US Fine Investment Arts, Inc (USFIA), are at the center of the alleged scheme. The complaint filed in the federal court in Los Angeles indicated that USFIA and Chen's other entities have raised more than $32 million from investors in and outside the U. S.....

All Things Alt: Ponzi Schemes, Blackcoin USBs and a Time Warp Attack

With another week gone by, let's shine the spotlight on recent developments and interesting finds in the world of alternative digital currencies. Shibes scheme in new online game. The popular meme-based digital currency dogecoin has been credited by some as providing a friendly introduction to digital currencies. However, now it is being leveraged to welcome people into a not-so-friendly corner of finance: the ponzi scheme. PonziDoge is billed as a "virtual experiment game" designed to educate people about the nature of ponzi schemes, a form of financial fraud that involves collecting....

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