SEC Sues Virtual Bank Founder Over $4.5M Bitcoin Scam

Law360, Los Angeles (July 23, 2013, 3:52 PM EDT) -- The U.S. Securities and Exchange Commission launched a lawsuit in Texas federal court on Tuesday against the founder of Bitcoin Savings and Trust, saying the man and his company defrauded investors in a Ponzi scheme involving bitcoin, a virtual currency traded online.

The SEC’s complaint raises allegations that BTCST founder Trendon T. Shavers offered and sold bitcoin-denominated investments through the Internet and raised least 700,000 bitcoin, which the SEC says amounted to more than $4.5 million based on the average price of bitcoin in 2011 and...
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Case Information

Case Title

Securities and Exchange Commission v. Shavers et al

Case Number



Texas Eastern

Nature of Suit



Amos L. Mazzant

Date Filed

July 23, 2013

Government Agencies

UK Financial Services

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