I was one of the dime droppers that turned in Shavers. I personally spoke to Philip Moustakis of the SEC about the complaint and he took down my information but let me know that he really didn't need any more statements because he had HUNDREDS of them already. Way more than he needed to file.
Thank you for that. Sincerely.
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Just because the system is broken doesn't mean your fellow Bitcoiners won't run to mommy government and tattle. They most certainly will do it and have done it en masse.
I think it should be pointed out here that there is a vast difference between fraud on the one hand, and running afoul of the regulator's restrictions upon exercising the right to contract on the other. Stealing people's holdings through a ponzi scheme is a vastly different thing than crowdfunding a new business (Isn't the mere selling of shares in SatoshiDice the thrust of regulators against Voorhees?).
I hear you, but you can't wake the beast and expect it to sleep until you're ready for it. Shavers ran an illegal security. Voorhees ran an illegal security. Just because Shavers wasn't crafty enough to return a bulk of the funds to investors right before he was caught doesn't make his crime different. It just means Voorhees was more crafty than Shavers and had a better legal team.
The difference between Shavers and Voorhees is a matter of semantics. They were both selling unregistered securities. Shavers became a Ponzi when he failed to return at least a bulk of the money. Voorhees was bright enough to get legal advise. I think they should have gone after him for FeedZeBirds too. He's obviously got a great legal team. Where's the 2,600 Bitcoins for FeedZeBirds Erik?
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Though the SEC investigation alleges that Erik Voorhees profited over $15,000 from his sale of unregistered offerings, the total settlement cost total more than $50,000. In the conclusion to this SEC investigation, Erik Voorhees has agreed to pay a full disgorgement of his profits of $15,843.98 plus a penalty of $35,000. Additionally, Voorhees has committed to not participating “in any issuance of any security in an unregistered transaction in exchange for any virtual currency including Bitcoin for a period of five years.” However, it is important to note that Voorhees has consented to the SEC ban and the SEC monetary penalty “without admitting or denying the SEC’s findings". FeedZeBirds is another Bitcoin security that Erik Voorhees offered on the Bitcoin Forum prior to his fundraising for Satoshi Dice. Like his Satoshi Dice IPO, FeedZeBirds was advertised on the Bitcoin Forum and raised 2,600 bitcoins in May of 2012.
Yeah that is a bit like poking a bear. A little foresight could have prevented a lot of problems.
