quote:
The SEC alleges that Trendon T. Shavers, who is the founder and operator of Bitcoin Savings and Trust (BTCST), offered and sold Bitcoin-denominated investments through the Internet using the monikers “Pirate” and “pirateat40.” Shavers raised at least 700,000 Bitcoin in BTCST investments, which amounted to more than $4.5 million based on the average price of Bitcoin in 2011 and 2012 when the investments were offered and sold. Today the value of 700,000 Bitcoin exceeds $60 million.

So I'm sure y'all will find a way to paint this negatively, but one of the constant criticisms I have seen on here have been concerns that bitcoin crimes aren't pursued and that users have no recourse if they are a victim of crime, and this pretty much proves that to be untrue.

This particular incident is one of the most infamous bitcoin related crimes in its short history.

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Posted by Vols&Shaft83

Throbbing Member

Member since Dec 2012

69912 posts

Posted on 7/23/13 at 12:44 pm to WikiTiger

So what happened to his victims?

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 7/23/13 at 4:24 pm to WikiTiger

Are you really this stupid? The SEC is after Shavers for bilking investors, not for anything related to Bitcoins. The SEC couldn't give a flying frick that the investors transferred Bitcoins to shavers instead of U.S. Dollars or Japanese Yen. Shavers sold investors on the idea that he would be engaged in Bitcoin arbitrage, and that he would increase the number of Bitcoins available to investors through the arbitrage operations. He failed to deliver on the promised investment income. The investors did not profit from their investment with Shavers. Any benefit they got from the appreciation in value of the individual Bitcoin would have accrued to them with, or without, Shavers. Their goal from investing with Shavers was to get more Bitcoins, not more value per Bitcoin. What they got was less Bitcoins.

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Posted by cajunangelle