Bitcoin Ponzi Schemer Gets 18 Months in Prison

Bitcoin Ponzi Schemer Gets 18 Months in Prison

In a landmark case involving the first-ever federal securities fraud involving bitcoin, a Texas man identified as the operator behind a Ponzi investment scheme has received a sentence of 18 months in prison. Trendon Shavers, aka “Pirate@40” was sentenced to 18 months in prison for the charge of one count securities fraud due to his bitcoin investment scheme operated as the Bitcoin Savings and Trust (BCS&T). Furthermore, the 33-year-old Texan also received 3 years of supervised release while being ordered to pay a little over $1.2 million in forfeiture and the same amount again in....


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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....

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....