BREAKING: SEC Charges pirateat40 With Running Bitcoin-Denominated Ponzi Scheme - page 11.

threeip

full member

Activity: 154

Merit: 100

Quote from: TheKoziTwo on July 23, 2013, 01:01:53 PM

Unbelievable how stupid this guy is. Ripping off that much bitcoin and ending up with so little $, moving it all into the exchange at once, putting his name out there and thinking he can get away with it.

Not to mention 'pay his rent, utilities, and car-related expenses as well as for food and retail purchases and gambling'...

A guy told me one time, "Don't let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner"

Foolish fools do foolish fool things Roll Eyes

Dice

member

Activity: 69

Merit: 10

Very good news

finally a bit of closure whether i get my money back or not.

greyhawk

hero member

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Merit: 1009

Quote from: ?? on ??

Next up: Hashking aka Sam Theofanopoulos, 7262 W Benton Dr Frankfort, IL 60423

I really hope they go after all the PPTs and the Starfish too.

TheKoziTwo

legendary

Activity: 1552

Merit: 1047

Unbelievable how stupid this guy is. Ripping off that much bitcoin and ending up with so little $, moving it all into the exchange at once, putting his name out there and thinking he can get away with it.

This is great news, a big slam it the face of everyone saying that agreements made over internet with "stupid internet money" can't be prosecuted. I'll be using this case for all it's worth.

btceic

sr. member

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Merit: 250

♫ A wave came crashing like a fist to the jaw ♫

Is this the same as the scotaloo character? If so:

Moogle

full member

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KUPO!

make me nervous about my money in coinlenders now. my heart jumped when i first read it

hathmill

full member

Activity: 186

Merit: 100

WOW! For everyone who have been following this story, this is really wow worthy news.

Nagle

legendary

Activity: 1204

Merit: 1002

That Ponzi scheme collapsed last year. The guy behind it ripped off people for around $5 million. The SEC has charged him with a crime, which is what they're supposed do. It was a classic Ponzi scheme ("7% a month returns"); it just happened to involve Bitcoins.

uyjulian

newbie

Activity: 55

Merit: 0

Wow, I didn't know SEC can go after Bitcoin (and other "digital currencies")...

Oh, and this thread is a duplicate.

flix

legendary

Activity: 1227

Merit: 1000

Extremely funny. I guess he wasn't so hard to find after all...

threeip

full member

Activity: 154

Merit: 100

https://www.sec.gov/servlet/Satellite/News/PressRelease/Detail/PressRelease/1370539730583#.Ue7BndLvuHO

Quote

SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme
FOR IMMEDIATE RELEASE
2013-132 Washington D.C., July 23, 2013 — 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.

Quote

The SEC alleges that Shavers, who lives in McKinney, Texas, paid 507,148 Bitcoin in investor withdrawals and purported interest payments. He transferred at least 150,649 Bitcoin to his personal account at an online Bitcoin currency exchange. Shavers suffered a net loss from his day trading, but realized net proceeds of $164,758 from his sales of 86,202 Bitcoin. Shavers transferred $147,102 from his personal account at the online Bitcoin currency exchange to accounts he controlled at an online payment processor as well as his personal checking account. He used this money to pay his rent, utilities, and car-related expenses as well as for food and retail purchases and gambling.

Full text here in case source goes down/changes.

Topic: BREAKING: SEC Charges pirateat40 With Running Bitcoin-Denominated Ponzi Scheme - page 11. (Read 44440 times)