I think the term "virtual currency" came into the popular parlance with the April 2013 FinCEN guidance and other agencies and the media picked up the terminology.  I do recall hearing on a youtube video of the NYS Bitlicense hearings or reading somewhere where Lawsky did acknowledge that some in the continuity prefer the term "digital" as opposed to "virtual." 

I think the industry  as a whole is pushing to popularize the term "blockchain technology" to diminish the focus on bitcoin as a currency.

My bet is Ben Lawsky announces he's joined a virtual currency company in the new year.

I'm sure the investigators would love the databases/record of the many pass throughs (if they don't already have them). My guess is you would have to cryptographically prove a chain of ownership (while also being able to prove that you didn't withdraw more bitcoin from the scheme then your total input).  

If you look at the madoff case, just today, 6 years later, they are still recovering funds.  
"total recovered from the scam had topped $10 billion or around 59 cents on the dollar of the investors' principal"
http://www.cnbc.com/id/102287847

Again, no one but the authorities probably have any idea if there are any assets anywhere.  

It will be interesting to see how recovery unfolds in this case.

The civil case is over and Shavers was fined $40 million dollars.  But if he doesn't have the funds no one is getting paid back.   

There is now a criminal case for Securities and Wire Fraud. 
http://www.justice.gov/usao/nys/pressreleases/November14/TrendonShaversArrest/Shavers,%20Trendon%20Complaint.PDF

When convicted Shavers will face jail time.  However again unless he has assets or the authorities can find any bitcoin he has hidden I doubt there will be a payout to victims.  I thing most victims at this point would be satisfied to see Shavers go to jail.

However, as happened in the Madoff case, the authorities could pursue anyone who profited from the BTCST investment scheme and "claw back" any profits.  This would then form a pool of funds to pay back victims proportionally to the amount the victims lost against any amount the authorities can recover.  I know of victims who lost 10,000 btc and more to the scheme so I would guess a proportional about for your 100 btc would be nominal unless they somehow make full recovery.

You already have Moustakis's info who was the SEC lawyer in charge of the the civil case.

Looking at the attached DOJ complaint it looks like ERIC BURNS is the FBI Special Agent in the Southern District of New York in charge of the Criminal Case.  You could try to contact him. But again with out any funds to recover there will be no repayment to victims.

Shavers is expected to appear on Nov. 14 in federal court in Manhattan after his case is transferred.

Anyone in NYC want to stop by and say Hi to Trendon.

http://www.reuters.com/article/2014/11/06/bitcoin-charges-idUSL1N0SW26620141106

UPDATE 1-Texan charged in first bitcoin securities fraud Ponzi case
Thu Nov 6, 2014 2:39pm EST

(Adds Bharara comment, 2nd paragraph; defendant's court appearance, additional case citation, paragraphs 10-12)

By Jonathan Stempel

Nov 6 (Reuters) - A Texas man who operated Bitcoin Savings and Trust was charged on Thursday with bilking his investors, in what prosecutors called the first federal criminal securities fraud case arising from a bitcoin-related Ponzi scheme.

Trendon Shavers, 32, of McKinney, Texas, was charged with misappropriating about 146,000 of the 764,000 bitcoin, then worth more than $4.5 million, that he raised from September 2011 to September 2012 by promising investors "absurdly high" interest rates, U.S. Attorney Preet Bharara in Manhattan said.

Bitcoin is a virtual currency that trades on the Internet, without the backing of any government or central bank.

The criminal case follows a Sept. 18 order by a federal judge in Texas that Shavers give up $40.7 million comprising illegal profit, interest and fines in a related U.S. Securities and Exchange Commission civil lawsuit.

Known online as "pirateat40," Shavers allegedly gained control of as much as 7 percent of the bitcoin market by promising investors up to 7 percent weekly interest, or 3,641 percent annualized, based on his ability to trade the currency, and a promise that money could be withdrawn at any time.

Instead, Shavers allegedly used new bitcoin to repay old investors, add to his account at the now-bankrupt Mt. Gox exchange, and fund expenses that included a used BMW M5 sedan, spa treatments, casino visits and a $1,000 dinner at Gallagher's Steakhouse in Las Vegas.

About half the investors in Bitcoin Savings and Trust, which was not incorporated and which Shavers ran by himself, lost some or all of their investments, prosecutors said.

"Trendon Shavers managed to combine financial and cyber fraud into a bitcoin Ponzi scheme that offered absurdly high interest payments, and ultimately cheated his investors out of their bitcoin investments," Bharara said in a statement. "This case, the first of its kind, should serve as a warning to those looking to make a quick buck with unsecured currency."

Shavers was charged with securities fraud and wire fraud, and faces up to 20 years in prison on each count if convicted.

The defendant was arrested at his home on Thursday morning, and later made an appearance before U.S. Magistrate Judge Amos Mazzant in the northeastern Texas city of Sherman near the Oklahoma border. Shavers is expected to appear on Nov. 14 in federal court in Manhattan after his case is transferred.

A lawyer for Shavers could not immediately be reached. Shavers did not immediately respond to an email request for comment. His ability to pay the SEC judgment was unclear.

The cases are U.S. v. Shavers, U.S. District Court, Southern District of New York, No. 14-mag-02465, and U.S. District Court, Eastern District of Texas, No. 14-mj-00355; and SEC v. Shavers et al, U.S. District Court, Eastern District of Texas, No. 13-00416. (Reporting by Jonathan Stempel in New York; Editing by Leslie Adler and Jonathan Oatis)

FYI,  for those catching up.
http://abcnews.go.com/Technology/wireStory/feds-announce-1st-bitcoin-securities-fraud-case-26734204

US Announces 1st Bitcoin Securities Fraud Case
NEW YORK — Nov 6, 2014, 12:47 PM ET
By LARRY NEUMEISTER Associated Press
 Associated Press
The federal government on Thursday announced its first bitcoin securities fraud case, accusing a Texas man of engineering a Ponzi scheme by getting people to turn over their bitcoins in return for promises of high interest rates and the ability to recoup their investment at any time.

Trendon Shavers, of McKinney, awaited an initial court appearance in Texas on securities fraud and wire fraud charges that were outlined in a criminal complaint unsealed in U.S. District Court in Manhattan.

"This case, the first of its kind, should serve as a warning to those looking to make a quick buck with unsecured currency," U.S. Attorney Preet Bharara said in a news release.

Bharara said the 32-year-old Shavers combined financial fraud and cyberfraud into a bitcoin Ponzi scheme offering "absurdly high interest payments, and ultimately cheated his investors out of their bitcoin investments."

At the peak of the scheme, Shavers possessed about 7 percent of all bitcoin in public circulation, prosecutors said.

George Venizelos, head of the FBI's New York office, said Shavers "used a new currency, but the same old reprehensible tricks."

"He claimed to offer a bitcoin market-arbitrage strategy. In reality, it was nothing more than an insidious scheme motivated by greed. Today, Shavers' jig is up," Venizelos said.

Bharara said Shavers caused about half of 100 investors to lose all or part of their bitcoin investment from at least September 2011 through September 2012 as he promised them up to 7 percent weekly interest and assured them they could withdraw their investment at any time if they turned over bitcoins.

Authorities say Shavers has already been ordered by a federal court in Texas to give up more than $40 million and pay a $150,000 penalty in a related civil case.

It isn't clear who will represent Shavers in court. Shavers did not immediately respond to a message for comment.

If convicted, he could face up to 40 years in prison.

Hatter's gonna hate.  I thing Patrick will make a big difference as ED of TBCF.   Now he just need to get rid of the rest of the skeevy characters on the board.

Here are some more photos.

http://imgur.com/a/QNUvX

This is one of the Credit Card Statements he used to verify his ownership of the card.


Predilailo Hector Matias
AV Italia 2285
3500 Resistencia
Prov Chaco


https://i.imgur.com/DHpPjMs.jpg

Famous last words.   The history books are filled with stories of men who have been brought down by greed.

That's it.  Mind bogglingly stupid!

It's a LONG story.  The forum is fill with threads.  Search "Trendon Shavers" "pirate@40"  It will go down in history as one of the great bitcoin scams.

There is also a 100 page deposition on line of him testifying with out a lawyer incriminating himself of all sorts of crimes.  Idiot. Hopefully criminal charges and jail time will follow.

If you give them your info they will give you your money. Simple as that.   Anyone who helps facilitate this transaction would probably be transacting in funds used in criminal activity.

It doesn't take this long to buy $200 worth of BTC.  This is probably a scam.

Okpay.

How about OKPay?

Make me an offer

Instant Transfer from Verified Account.

Lowut??!! What up.