[2015-12-01] Jail time motherfucker: SEC Charges GAW & Josh Garza

[LiteCoinGuy]

Jail time motherfucker: SEC Charges GAW & Josh Garza

Washington D.C., Dec. 1, 2015 —

The Securities and Exchange Commission today charged two Bitcoin mining companies and their founder with conducting a Ponzi scheme that used the lure of quick riches from virtual currency to defraud investors.

According to the SEC’s complaint filed in federal court in Connecticut, “mining” for Bitcoin or other virtual currencies means applying computer power to try to solve complex equations that verify a group of transactions in that virtual currency.  The first computer or collection of computers to solve an equation is awarded new units of that virtual currency.

https://www.sec.gov/news/pressrelease/2015-271.html



black guys will love him 

[1715041280]

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[1715041280]

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[1715041280]

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[1715041280]

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[1715041280]

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[coaltin]

I believe SEC in its statement

The SEC alleges that Homero Joshua Garza perpetrated the fraud through his Connecticut-based companies GAW Miners and ZenMiner by purporting to offer shares of a digital Bitcoin mining operation.  In reality, GAW Miners and ZenMiner did not own enough computing power for the mining it promised to conduct, so most investors paid for a share of computing power that never existed.  Returns paid to some investors came from proceeds generated from sales to other investors.

is the harsher implication of everything being discussed here: https://bitcointalk.org/index.php?topic=857670.0;topicseen

[LiteCoinGuy]

http://www.coindesk.com/gaw-faces-ponzi-scheme-charges-from-sec/

[gentlemand]

There was so much screaming and shit being slung that I well and truly couldn't be bothered trying to even begin to keep abreast of what was going on there. The one thing that was clear was the bad smell hanging over the whole thing.

[Bitware]

Good.