Pirateat40 bitcoin news

Unfortunately, a prolonged bear market ensued shortly after the peak. One factor which might have attributed to the sharp decline was the shutting down of a major Ponzi Scheme operation in August of After an investigation conducted by the US Securities and Exchange Commission, Trendon Shavers, a Texas man using the alias pirate at 40 was arrested in on the first federal securities fraud charges involving a bitcoin related scheme. This permitted the spending of the same funds twice, effectively breaking the cryptocurrency. As expected, the market did not react well to the bug.

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• SEC charges Texas man with running Bitcoin-denominated ponzi scheme
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• SEC charges Texas man with running Bitcoin Ponzi scheme
• SEC Confirms That Bitcoin Savings & Trust Was A Ponzi Scheme; Files Lawsuit
• Mr. Bitcoin Goes to Washington
• History of BTCUSD
• Bitcoin 'hedge fund' operator denies fraud

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SEC charges Texas man with running Bitcoin-denominated ponzi scheme

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Try it out for free. Choose from a broad listing of topics suited for law firms, corporate legal departments, and government entities. Individual courses and subscriptions available. Magistrate Judge Amos L. Mazzant handed down the order against Trendon T. When asked how he was able to achieve such lucrative returns, Shavers told investors that he was involved in bitcoin arbitrage activity that included acting as a middleman for individuals who wished to purchase large quantities of BTC "off the radar. As the operation progressed, the minimum investment amount was raised to BTC, and investors were permitted to re-invest their profits.

SEC charges Texas man with running Bitcoin Ponzi scheme

Bitcoin is going to have to grow up fast. The digital currency's skyrocketing value and habit of winding up in criminals' hands are attracting the attention of Congress and D. And that's forcing supporters of the four-year-old Bitcoin to suddenly start acting like an old-school financial firm in Washington. They're ramping up lobbying efforts to shape regulations that are likely to come, prepping for Senate testimony, and even forming their own trade association. Perhaps it's just a coincidence that the Federal Election Commission has quickly decided to allow campaign donations to be made by Bitcoin. The distributed, cryptographically-signed currency has already had a long journey since it was created almost five years ago to allow people to buy and sell things online without the cost and hassle of a bank. It's impossible to know whether widespread investment or political contributions were part of creator "Satoshi Nakamoto's" original vision when he created the first Bitcoins in ; his real identity is still unknown.

SEC Confirms That Bitcoin Savings & Trust Was A Ponzi Scheme; Files Lawsuit

A Texas has man has been charged by the Securities and Exchange Comission for allegedly running a Bitcoin Ponzi scheme. Shavers also transferred more than , Bitcoins to his personal account in order to conduct day trading where he lost money and pay for his accommodation, car, food and general shopping. The case is one of the first criminal prosecutions related to Bitcoin, and the debate is still continuing as to whether the virtual currency, launched in , is in need of official regulation. Registration is a free and easy way to support our truly independent journalism.

Mr. Bitcoin Goes to Washington

In a decision dated Thursday, US Magistrate Judge Amos Mazzant said Trendon Shavers "knowingly and intentionally" operated his company "as a sham and a Ponzi scheme," misleading investors about the use of their bitcoin, how he would generate promised returns and the safety of their investments. Shavers, of McKinney, Texas, did not immediately respond on Friday to a request for comment. His ability to pay the judgment is unclear. The SEC said Shavers used the online moniker "pirateat40" to raise more than , bitcoin from February to August , promising investors up to 7 per cent in weekly interest to be paid based on his ability to trade the currency. But according to the decision, Shavers used new bitcoin to repay earlier investors, diverted some to personal accounts at the now-bankrupt Mt Gox exchange and elsewhere, and spent some investor funds on rent, food, shopping and casino visits. The SEC announced the case on July 23, , the same day it warned investors to be on alert for potential scams involving bitcoin and other "cutting-edge" investments.

History of BTCUSD

The Securities and Exchange Commission filed a civil suit against Trendon Shavers of McKinney, Texas, alleging Shavers defrauded at least 66 investors in more than a half-dozen states by promising low-risk returns he would garner through buying and selling the virtual currency online. Shavers sold the Bitcoin-denominated investments through the Internet under the identities "Pirate" and "pirateat40," the SEC said. Instead of initiating the currency transactions as he promised, Shavers used the money from new investors to cover purported interest payments and to cover investor withdrawals, the SEC said. Shavers also transferred proceeds to his personal checking account and other accounts, where he used the money to pay his rent, gamble, make retail purchases and for other pursuits, the SEC said. The SEC is seeking a court order to freeze the assets of Shavers and his investment vehicle, Bitcoin Savings and Trust, as well as a permanent injunction, disgorgement of ill-gotten gains and financial penalties.

Bitcoin 'hedge fund' operator denies fraud

A Texas man was charged on Tuesday in U. Trendon T. Shavers of McKinney, Texas, ran the Bitcoin Savings and Trust BTCST , an investment scheme that promised 7 percent weekly returns from bitcoin trades intended to profit from market price differences in the virtual currency, according to a news release from the U. Securities and Exchange Commission.

It's not the crypto that is the problem, it is the populist "robinhood" rhetoric that gets crypto into trouble. In the whole of the USA, there are only 80, accredited investors. The SEC is fine with those people taking on risky investments. If the crypto companies focused their efforts on accredited investors there would be less of a panic about crypto.

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. Remember pirateat40, the e-currency banker we speculated could be the Bernie Madoff of Bitcoin? Well, it looks like he owes a lot of people money. Ten days later, investors are still waiting to get paid and pirateat40 is on the defensive. Pirateat40 consistently maintained that he made his money legitimately through secret investment strategies.

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 allegedly took client funds for personal use, spending the cash on gambling, travel and general living expenses.