Search: Ponzi scheme

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....

"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....

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....

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....

Exclusive: Possible $500,000 Bitcoin Cloud Mining Ponzi Scheme Uncovered

Roughly nine months ago, Bitcoin Foundation Chief Scientist Gavin Andresen made a rather interesting comment on Reddit in which he claimed, "I suspect many [cloud mining companies] will turn out to be Ponzi schemes."There have been a few cloud mining scams uncovered over the past year or two,....

Central Bank of Estonia Suggests Bitcoin is a Ponzi Scheme

Estonia's Central Bank is warning citizens to be wary about getting involved with bitcoin, according to a report from Bloomberg, insinuating it could prove to be little more than Ponzi scheme. The emerging digital currency "is a problematic scheme," according to Mihkel Nommela, who heads the....

Lawyer Spills the Beans on Bitcoin Ponzi Convict, Pirateat40

In September, Texan man Trendon Shavers admitted to conducting a $4.6M Bitcoin Ponzi scheme. On the popular bitcointalk.org forum, he promised investors a 7 percent weekly return on sums of more than 25K BTC. Pirateat40 hastily shut down the scheme in mid-2012, leaving investors in the dark....

Investigations Ongoing for Bitcoin Ponzi Scheme in Thailand

Bitcoin has been subject to a lot of fraudulent activity, owing partly to the decentralized and anonymous nature of cryptocurrency transactions. In addition to hacking attacks and bitcoin wallet theft, the digital currency has also been used as a means of money transfer in Ponzi investment....

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....

SEC warning to Bitcoin: "Scam, Ponzi Scheme"

On May 7th 2014, SEC, or the U.S. Securities and Exchange Commission, released a warning about the dangers of Bitcoin, such as calling Bitcoin a Ponzi scheme. Now whether or not that is true is up for debate, and I believe many users would voice strongly against that. That doesn’t mean the....

Bitcoin Ponzi Scheme Collapse Looms in Vietnam

This particular Ponzi Scheme in Vietnam will give Bitcoin a bad reputation in the country. Cryptocurrency is not regulated by the banks, and the local government is not too keen on Bitcoin either. Ever since the inception of Bitcoin, there have been individuals and companies trying to....

$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....

Examining Bitcoin for Ponzi Scheme Signs

People who don’t fully understand what crypto-currencies are and see them more as some form of “imaginary money” are inclined to make unflattering comparisons between Bitcoin and ponzi schemes. Many countries and central banks have issued warnings on the crypto-currency and attacked it using....

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.....

Chinese Gov’t Warns Against ‘Transparent’ Ponzi Scheme MMM Global

Chinese officials have warned its country’s citizens about MMM Global, a Ponzi scheme that has been plaguing the internet for some time now. In fact, this operation has been running since the early 90s and continues to run rampant after regenerating a few times. The MMM Global Company, which....

MyCoin Ponzi Scheme, Taiwan Cops Net Two More

MyCoin was one of the biggest scams to hit the shores of Hong Kong this year. The alleged bitcoin exchange based out of Hong Kong was in fact an elaborate Ponzi scheme that successfully managed to rip off over $387 million dollars in customer investments after they shut shop overnight earlier....

Is This Man the Reason Behind the Bitcoin Price Surge?

Bitcoin price analysts are struggling to identify the rationale behind the sudden price spike in the cryptocurrency’s value as it broke the US$400 mark on November 3, surpassing a market cap of more than US$6 billion. One thing for sure is that nobody can deny the effect China has had on the....

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....

SEC charges Texas man for defrauding investors in bitcoin Ponzi scheme

The US Securities and Exchange Commission (SEC) has charged a Texas man and his company for defrauding investors using a bitcoin Ponzi scheme. According to the SEC, Trendon T. Shavers, founder and operator of Bitcoin Savings and Trust (BTCST), allegedly used the monikers 'Pirate' and....

P2P Lending Regulation Looms as China’s Ezubao Ponzi Scheme Unravels

Peer-to-peer lending has become an emerging trend in various countries around the world. Especially in China, things seemed to be heating up, thanks to a company called Ezubao. But at the same time, rumours started surfacing this company’s intentions were less than honorable. At it turns out,....

How Bitcoin is Changing Everything

Perhaps the single most prominent, and telling, feature of bitcoin today is its massive controversy in the media. Not a single day goes by without an article or televised mention about its dangers, risks, and dubious mainstream appeal. Many in the mainstream seem set in their beliefs that....

BTCC CEO Bobby Lee Warns Bitcoin Investors about MMM Ponzi Scheme

Certain organization such as MMM Global have been accepting bitcoin payments in what appears to be a rehashing of the pyramid scheme of the same name that was started back in the Soviet Union. Now, CEO Bobby Lee and the BTCC team issued a warning to its customers and potential bitcoin investors....

Feds Bust Gemcoin Startup Accused of a $32 Million Scam

Federal authorities have raided an alleged Ponzi investment scam that promised to pay dividends to investors by claiming to hold amber mines whose profits would be paid out in the cryptocurrency - Gemcoin. The Securities and Exchange Commission (SEC) announced the filing of fraud charges and the....

Bitcoin-based Pyramid Scheme Flourishes in Zimbabwe as Economy Thickens

Various African countries have been hit with poverty in recent years. Improving that situation will take a global effort, and Ponzi Schemes are not interested in raising social standards by any means. Pyramid schemes are not that uncommon in the African market these days. iRaisers, one....

MyCoin Bitcoin Scam - The Sequel to a Bitcoin Nightmare

When the first major bit-heist, Mt. Gox, happened, many in the crypto community might have been forgiven for thinking that it had been but a minor case of arrhythmia. However with the latest incident involving MyCoin, a bitcoin exchange in Hong Kong, it appears that we might soon have a....


Quotes

The Bitcoin protocol has immense intrinsic value as a self-regulating frictionless payment network affordable to almost anyone. Here is a technology that allows anyone to send any amount of money to anyone else in the world at virtually no cost with nothing more than an Internet connection or smart phone. Bitcoin, like the Internet, is one of those innovations that can break down barriers; information barriers in the case of the Internet, and financial barriers with Bitcoin.

Dan Roseman, Financial Professional