SHERMAN, Texas (CN) - A Texas man accused of running a bitcoin Ponzi scheme cannot dodge securities fraud claims by denying that the virtual currency is money, a federal judge ruled Tuesday.

Two weeks ago, the Securities and Exchange Commission sued 30-year-old Trendon Shavers of McKinney, Texas, and his company Bitcoin Savings and Trust (BTCST). Shavers allegedly raised over $4.5 million worth of bitcoin from online investors over the course of a year.

"Bitcoin ('BTC') is a virtual currency that may be traded on online exchanges for conventional currencies, including the U.S. dollar, or used to purchase goods and services online," the complaint stated. "BTC has no single administrator, or central authority or repository."

Securities regulators say Shavers drew new investors in with promises of a significant interest rate, and then passed bitcoin on to his earlier investors, friends and himself.

U.S. Magistrate Judge Amos Mazzant presided over a hearing on Monday, during which Shavers questioned whether the court had subject matter jurisdiction.

"Shavers argues that the BTCST investments are not securities because Bitcoin is not money, and is not part of anything regulated by the United States," according to the ruling. "Shavers also contends that his transactions were all Bitcoin transactions and that no money ever exchanged hands."

In a four-page order Tuesday, Mazzant found that federal securities law gives the court subject matter jurisdiction over the case.

"It is clear that Bitcoin can be used as money," Mazzant wrote. "It can be used to purchase goods or services, and as Shavers stated, used to pay for individual living expenses. The only limitation of Bitcoin is that it is limited to those places that accept it as currency. However, it can also be exchanged for conventional currencies, such as the U.S. dollar, Euro, Yen, and Yuan. Therefore, Bitcoin is a currency or form of money, and investors wishing to invest in BTCST provided an investment of money."

Mazzant added in support of his finding that investors expected a profit and that a common enterprise existed.

This user has a scam accusation pending against him. People are advised to avoid doing any business with him until the matter is clarified.

https://bitcointalk.org/index.php?topic=268051.0

He is listed as a speaker.

is this an open discussion, can anyone attend?

Virtual Currencies Compliance Conference, Wednesday, August 14, 2013, Hosted by the National Money Transmitters Association

New York, New York (PRWEB) August 05, 2013

On Wednesday, August 14th, at the New York City Bar Association, former Financial Crimes Enforcement Network (“FinCEN”) Director James H. Freis, Jr. will address the first Virtual Currencies Compliance Conference (“VC3”), proudly hosted by the National Money Transmitters Association (http://www.nmta.us)!

Few can speak as authentically as Mr. Freis on the federal approach to regulation of new money transfer technologies. It was during his tenure that FinCEN first issued rules on how the BSA would treat prepaid access (or stored value) products, including mobile and internet money transfer.

Recent guidance from FinCEN further clarified that virtual currency Exchangers and Administrators were also to be considered money services businesses ("MSBs") under the Bank Secrecy Act (“BSA”). A short time later, Cease and Desist Orders were sent to many Bitcoin operators by the State of California, due to their lack of state licenses.

Some virtual currency entrepreneurs, well aware of their anti-money laundering (“AML”) and state licensing obligations, integrated regulatory compliance into their business plans from the start. Some, however, may not have planned on the expense of compliance. They will now have to implement AML programs, get state-licensed and register with FinCEN, or risk facing criminal charges.

Industry members who come to VC3 will be enlightened by Mr. Freis and seven other compliance experts in interactive sessions, and by a panel of their industry peers at the end of the conference day.

There will be ample time to meet and chat with the experts and each other during a continental breakfast, buffet lunch and two coffee breaks. The day will finish with a networking cocktail mixer from 5:15 p.m. to 7:00 p.m.!

From 7:00 p.m. to 8:30 p.m., VC3 attendees who want to help shape and protect the future of their industry are welcome to attend a discussion of lobbying and self-regulatory strategies.

This meeting will be chaired by Ms. Constance Choi, General Counsel of Payward, Inc., one of the more than seventeen companies that have formed the Digital Asset Transfer Authority (DATA), a new self-regulatory effort that is making rapid progress and has garnered broad support from a large number of important industry players.

Do not miss this intensive learning and networking experience, register now at http://www.nmta.us. Early Bird pricing has been extended to August 11, 2013. Please call David at (917) 921-9529 to see if you qualify for affinity discounts.

the polls are open for the merged mining at KnC

I can sell if btcguild will start giving.

When btcguild will start giving?  I will have 10 for sale .

I'm more familiar with the BYU Provo (Utah) campus, but I believe this is the same deal. Unmarried students not living with family are required to live in "approved housing", which is contracted with the university in some way. If you're OK with being one of 4 or 6 students in a 3-bedroom apartment (and following a bunch of rules you have to agree to as part of the school honor code), it gets down to ~$100/month in the summer, $250-350 during the school year. Private rooms cost more, but still pretty good deal.

Anyway, it's not like the official on-campus dorms are accepting bitcoin. Still, as others have noted, the "Mormon network effect" could snowball, other property managers in the area might get interested, it's offered to college kids who are early adopters, etc.

I know I wasn't part of the group buy, but if anyone orders a bunch and wouldn't mind reselling one or two for like .2/ea ... I'd like to get one of these USB miners. I still have yet to get an ASIC, and these USB miners are way cool. But if not, that's fine. Just hoping. Thx.

Well fuck me but you get my point I'm sure

LOL!

Since these are U.S scientists ( bearing in mind this is a country with a population who genuinely believed the CERN collider could create a black hole ) I'm going to assume it's a load of bullshit, heat generally does affect mood etc. for people, I know I turn into a right grumpy fucker when it gets hot ( currently 20+ degrees here ) but it doesn't make me want to go around raping and assaulting people and yes. One of the bullshit signals for me was how the hell would people have the energy to do that in this heat?

As for climate change my opinion is this, it is incredibly arrogant for anyone to claim they know anything about the Earth from barely a century's worth of data, the planet is millions of years old as far as we know so it's a bit like with religious people where they claim the earth only existed for a few thousand years because their bible was written that time ago.