Bitcoins Are Currency Subject To Securities Laws, Judge Says

Law360, Los Angeles (August 6, 2013, 9:03 PM EDT) -- Internet-traded bitcoins are a form of currency subject to federal securities laws, a Texas federal judge ruled Tuesday, refusing to dismiss the U.S. Securities and Exchange Commission's claims accusing the founder of Bitcoin Savings & Trust of running a Ponzi scheme.

Bitcoin is a form of currency because it can be used to purchase goods or services and exchanged for more traditional forms of money, U.S. Magistrate Judge Amos L. Mazzant wrote in a decision Tuesday.

Bitcoin Savings & Trust sold investments denominated in the online...
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Case Information

Case Title

Securities and Exchange Commission v. Shavers et al


Case Number

4:13-cv-00416

Court

Texas Eastern

Nature of Suit

Securities/Commodities

Judge

Amos L. Mazzant

Date Filed

July 23, 2013

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