6 votes

Texan Charged In BITCOIN - Denominated Ponzi Scheme

Texan Charged In BITCOIN - Denominated Ponzi Scheme

Submitted by Tyler Durden on 07/23/2013 12:36 -0400

That didn't take long.

From the SEC:

The Securities and Exchange Commission today charged a Texas man and his company with defrauding investors in a Ponzi scheme involving Bitcoin, a virtual currency traded on online exchanges for conventional currencies like the U.S. dollar or used to purchase goods or services online.

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.

Read more: http://www.zerohedge.com/news/2013-07-23/texan-charged-bitco...

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Correct me if I'm wrong

but it seems, on close reading, to reveal that bitcoin per se, and the unique attributes of bitcoin, are not central to the scheme. Bitcoins just happened to be the medium of exchange / the items being traded.

Could have been done with any other form of currency?

So I see no reason to trash bitcoins just because of this.

Can't eat bitcoin


Are you a POT or a PET - Person Embracing Tyranny?

bitcoins just another piece of paper

not physical materiel. easily duplicated with no effort.

Not easily duplicated

There will only be approximately 1.314 million bitcoins created this year. There is no way to magically create more than that. You certainly can't duplicate a bitcoin, no one has ever counterfeited a bitcoin. And no person, company, or over overseeing committee has the ability to tell the network to create them faster. If you want to create new bitcoins you have to earn it.

There are no government regulations and it is practically anonymous, and the government couldn't shut it down if they wanted to.

Definitely not just another piece of paper.

It is however, from a libertarian standpoint (and a tech geek standpoint) extremely interesting and exciting. Unfortunately it isn't easy to understand.

This proves that bitcoin has

This proves that bitcoin has arrived. You'd don't have a real currency until somebody tries to use it in a Ponzi scheme.

The media loves to slander bitcoin.

From the article it almost sounds like bitcoin is a ponzi scheme. You have to read the article to find the man running the ponzi scheme uses bitcoin to lure people into his scheme, saying he will trade bitcoins with their money and pay them interest. He bought bitcoins and and just kept their money, using new investors to pay the interest.

The House votes on HR2399

The House votes on HR2399 tomorrow to defund unconstitutional NSA spying.


Call your representatives and tell them to support the bill and the 4th Amendment by supporting HR2399.