Bitcoin Ponzi Scheme Operator Pleads Guilty to Securities Fraud

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....

Bitcoin Ponzi Scheme Operator Pleads Not Guilty to Fraud

Bitcoin Savings & Trust (BS&T) operator Trendon Shavers has plead not guilty to fraud charges in a New York District court. If convicted, Shavers faces up to 40 years in prison, as well as millions of dollars in potential fines and penalties. Shavers is charged with one count of securities fraud and one count of wire fraud. The prosecution alleges that Shavers promised outsized returns to investors but in reality operated a Ponzi scheme by paying early investors with the proceeds from new ones. Shavers, who operated under the username pirateat40, solicited investors for BS&T during 2011....

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....

"[email protected]" Arrested for Bitcoin Ponzi Scam

Charles Ponzi. Trendon Shavers, aka "[email protected]," 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 Operator Sentenced to 18 Months in Prison

The first federal securities fraud case involving a bitcoin investment scheme has ended with perpetrator Trendon Shavers receiving a sentence of 18 months in prison. In addition, Shavers was assessed penalties including three years of supervised release, a $100 special assessment, $1.2m in forfeiture and $1.2m in restitution. The decision puts to rest a case that began in July 2013 when Shavers was charged with defrauding investors through an investment service called Bitcoin Savings and Trust (BCS&T), which was later deemed to be a fraudulent ponzi scheme. Shavers, who was charged....