SEC Charges Bitcoin Startup CEO With Running a Ponzi SchemeThe Securities and Exchange Commission announced Monday it has charged two bitcoin companies and their founder Josh Garza with defrauding investors.
Garza’s companies, GAW Miners and ZenMiner, were Ponzi schemes the complaint alleges, selling shares in digital mining operations that never came to fruition. Many investors never received their funds back and very few made a profit, according to the SEC.
http://motherboard.vice.com/read/sec-charges-bitcoin-startup-ceo-with-running-a-ponzi-scheme
