Bitcoin Ponzi Schemer Pleads Guilty

Bitcoin Ponzi Schemer Pleads Guilty

A 33-year-old Texan man pleaded guilty to running a Ponzi scheme involving bitcoins, making it the first ever U. S. criminal fraud case related to the cryptocurrency. Texas native Trendon Shavers has admitted to operating a Ponzi scheme running $4.5 million worth of bitcoins, Reuters reports. Shavers aka "pirateat40" while online, was arrested in November, a couple of months after being ordered to pay $40.7 million in a U. S. Securities and Exchange Commission civil lawsuit related to the Ponzi case. The case is a milestone, with prosecutors noting that it is the first U. S. criminal....


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Bitcoin Ponzi Scheme Operator Pleads Guilty to Securities Fraud

Bitcoin Ponzi scheme perpetrator Trendon Shavers has plead guilty to securities fraud, a decision that reverses plea of not guilty submitted in March. Shavers faced up to 20 years in prison for defrauding investors out of an estimated $4.5m while operating Bitcoin Savings & Trust (BS&T). The investment scheme, which promised investors 7% returns on bitcoin market arbitrage activity in 2011 and 2012, became the object of a US Securities and Exchange Commission (SEC) inquiry in July 2013. According to a report by Bloomberg, Shavers will now serve anywhere from 33 months to 41 months in....

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Bitcoin Scam Operator Pleads Not Guilty in Fraud Trial

Bitcoin Savings & Trust (BS&T) operator Trendon Shavers, who has allegedly been operating a bitcoin scam and Ponzi scheme, has plead not guilty during his fraud trial in a New York District court. He is charged with one count of securities fraud and one count of wire fraud. Shavers could pay millions of dollars in fines and penalties, along with facing up to 40 years in prison if convicted. This marks Shavers' second trial in securities fraud, as he was previously found guilty of securities violations in September last year when he was ordered to pay 40 million dollars in fines. Bitcoin....

Pirateat40 Pleads Guilty to $4.6M Bitcoin Ponzi Scheme Charge

Texas man Trendon Shavers has finally admitted that he indeed was the brain behind Bitcoin Ponzi scheme named Bitcoin Savings and Trust (BTCST). As per a report by the Wall Street Journal, the entire racket was so big that at a certain time it actually had 7 percent digital currency in circulation under its grasp. This case had taken the Bitcoin community by the storm, but now, as per the plea agreement, Trendon will not face the second charge of wire fraud. Trendon T. Shavers, whose online name was pirateat40, is now going to hear his sentence being read out on Feb. 3. We had earlier....

Police Officer Pleads Guilty to Selling Stolen Bitcoin Mining Hardware

An ex-cop in New Jersey indicted last year for trying to sell stolen bitcoin mining equipment has reportedly plead guilty. Regional news service NJ.com reported today that Vincent Saggese plead guilty to official misconduct and receiving stolen property after being caught in a sting operation last year. Saggese was charged in April 2015 after attempting to sell a collection of stolen computer equipment that included mining products from KnCMiner. A 10-year veteran of the Plainfield Police Department, Saggese faces a sentence of as much as five years probation and mandatory community....

Quotes

You'll hear the word 'decentralized' thrown around a lot when talking about Bitcoin. The reason for this is that Bitcoin is a decentralized asset that no one entity has control over. This might not seem important, but think about the people who live in places where that central entity that controls your currency is corrupt or unstable.

Melanie Shapiro, Founder/CEO of Case Wallet, PhD in Consumer Behavior