First Bitcoin Securities Fraud Case
Federal prosecutors have brought securities fraud charges against a 32-year-old Texas man, Trendon Shavers, related to his operation of “Bitcoin Savings and Trust,” which the government alleges was an elaborate ponzi scheme.
The securities fraud charges are believed to be first brought in relation to Bitcoin, a global internet currency that is not backed by any bank or government. Bitcoin has achieved a certain prominence in recent months, as it is popular with libertarian-minded Internet users who are skeptical of central banking and government authority.
According to prosecutors, Shavers ran the Bitcoin Savings and Trust as a classic ponzi scheme, promising investors outrageous interest rates on their investment and paying them off with “profits” provided by new investors. The government also alleges that Shavers used much of the money related to his Bitcoin stash, valued at the time at more than $4.5 million, to fund a lavish lifestyle that included expensive dinners and cars.
At Colling Gilbert Wright, our securities fraud attorneys always keep a close eye on new developments in the field. Bitcoin fraud is uncharted legal territory, just as the currency itself is uncharted monetary territory. This means investors in the field are uniquely vulnerable to fraud and abuse.
If you need an experienced securities fraud attorney, please contact Colling Gilbert, Wright & Carter today for a free consultation.