Wednesday, 24 July 2013

SEC accuses Texas man of running Bitcoin Ponzi scheme

A Texas man is in trouble with the feds for allegedly ripping off investors via a Bitcoin-inspired Ponzi scheme.

The SEC announced on Tuesday that it has charged Trendon Shavers, the founder and operator of Bitcoin Savings and Trust, with several violations of federal law.

Shavers reportedly raised at least 700,000 Bitcoin in investments through his company in 2011 and 2012. At that time, his Bitcoin investments were worth $4.5 million. Today, they're worth more than $60 million.

The government accuses Shavers of generating all that money by promising investors 7 percent in interest each week for buying Bitcoin "off the radar" or in large amounts. But in actuality, says the SEC, Shaver was running a Ponzi scheme in which he used Bitcoin from his new investors to cover interest payments and withdrawals on outstanding investments. Further, Shavers allegedly used the Bitcoin from his investors to trade in his own personal account and to pay off his own personal expenses.

"Fraudsters are not beyond the reach of the SEC just because they use Bitcoin or another virtual currency to mislead investors and violate the federal securities laws," Andrew Calamari, director of the SEC's New York Regional Office, said in a statement. "Shavers preyed on investors in an online forum by claiming his investments carried no risk and huge profits for them while his true intentions were rooted in nothing more than personal greed."

The SEC is seeking a court order to freeze the assets of Shavers and his company. The agency is also looking for permanent injunctions, financial penalties, and the disgorgement of the ill-gotten gains with prejudgment interest, which means Shavers would have to return all the money he obtained along with interest should he be found guilty.

Source: http://news.cnet.com/8301-1023_3-57595086-93/sec-accuses-texas-man-of-running-bitcoin-ponzi-scheme/?part=rss&tag=feed&subj=News-PoliticsandLaw

nick swisher jaco san jose sharks humber perfect game ufc 145 fight card ufc145 chimpanzee

7 comments:

  1. Buy Tadagra 20 online is an erectile dysfunction remedy which is used to treat erectile dysfunction in men over 18 years of age. Erectile dysfunction is defined as inability to achieve and maintain erection enough for the sexual intercourse. The active ingredient of the medication is tadalafil which is PDE5 inhibitor.

    ReplyDelete
  2. VIDALISTA 10 MG is a low-volume Vardenafil tablet custom tailored for the men who have newly established erectile dysfunction (ED) and are at the commencement phase of the medical attention

    ReplyDelete
  3. CENFORCE 50 MG ingredient Sildenafil Citrate, Cenforce 50 is a promising remedy for attenuating erectile dysfunction (ED) in men with the duplicate efficacy of expensive Viagra

    ReplyDelete
  4. Nice information.. Hi dear, This is an nice and valuable post thanks for this information! Visit .. VIEW MORE:-Modalert 200 mg tablets

    ReplyDelete
  5. Fildena 100 is used to treat erectile dysfunction in men (erectile dysfunction, a condition in which an erection cannot be achieved or maintained). Fildena 100 Purple is used for treating erectile dysfunction or impotence (a condition in which an erection cannot be achieved or maintained) in men. Sildenafil 100 mg is used to increase physical activity in adults with pulmonary arterial hypertension (PAH; a cause of high blood pressure, dizziness, shortness of breath and fatigue of the blood vessels that carry blood to the lungs).


    Fildena XXX

    Fildena 25

    Fildena Super Active

    Fildena 120

    ReplyDelete
  6. Cenforce 200 (Sildenafil Citrate) is a medication that is taken by means of mouth to treat the temporary removal of symptoms accomplice with the situation referred to as Erectile Dysfunction (ED) in guys. ED manifests as the incapability to attain the diploma of penile hardness that is sufficient for intravaginal penetration.

    ReplyDelete