SEC Charges Operator of Bitcoin Savings and Trust with Fraud

Today, the SEC charged Trendon Shavers of McKinney, Texas, known to many in the bitcoin community as “pirateat40″ with defrauding investors in a Ponzi scheme known as the Bitcoin Savings and Trust. The SEC also issued an investor alert titled, “Ponzi Schemes Using Virtual Currencies.” The Bitcoin Savings and Trust, an infamous fraud in the bitcoin community, was suspected of being a Ponzi scheme long before its final closure. By limiting initial investments, promising 3,300% annualized interest and establishing trust over a long period of time on the bitcointalk forums, Shavers was able to con more than 700,000 BTC from …