[2016-07-22] Bitcoin Ponzi Scheme Operator Sentenced to 18 Months in Prison

[hendra147]

The first federal securities fraud case involving a bitcoin investment scheme has ended with perpetrator Trendon Shavers receiving a sentence of 18 months in prison.

In addition, Shavers was assessed penalties including three years of supervised release, a $100 special assessment, $1.2m in forfeiture and $1.2m in restitution.

The decision puts to rest a case that began in July 2013 when Shavers was charged with defrauding investors through an investment service called Bitcoin Savings and Trust (BCS&T), which was later deemed to be a fraudulent ponzi scheme.

Shavers, who was charged with one count of securities fraud and one count of wire fraud, faced up to 40 years in prison. He pled not guilty to fraud charges in March 2015, a decision he would later reverse in September of that year as part of a plea deal that lowered his possible sentence to a maximum of 41 months.

http://www.coindesk.com/bitcoin-ponzi-scheme-18-months-prison-bitcoin-savings-trust/

[Coin_trader]

due to his ponzi scheme activities? but he is not the dev of ponzi coin huh?

[Strongkored]

due to his ponzi scheme activities? but he is not the dev of ponzi coin huh?

Even so, but I hope this will create a deterrent effect or fear if there are people who want to make ponzi program. And we expect, there is support from the community to not follow or even ponzi support programs. Because with no one interested in the ponzi program, ponzi will die.

[1Referee]

due to his ponzi scheme activities? but he is not the dev of ponzi coin huh?

Even so, but I hope this will create a deterrent effect or fear if there are people who want to make ponzi program. And we expect, there is support from the community to not follow or even ponzi support programs. Because with no one interested in the ponzi program, ponzi will die.

If no one throws money at these ponzi's, they will indeed die. The problem however is the greed aspect of a lot people here. They know very well that it is a ponzi, but still they don't care and are only interested in the potentially quick returns. That they invest money into something very risky, that's one thing, but what bothers me is that these people willingly put money into a scam. They pay and lose money, and thus support these schemes to make even more victims. That's the dumbest thing ever.

[gentlemand]

due to his ponzi scheme activities? but he is not the dev of ponzi coin huh?

This was a long time ago and this was THE ponzi. It dragged on for years and people were a lot more naive back then. Current ponzis are painfully obvious and pretty open about it sometimes. This was more insidious. He got over 140,000 BTC out of it.

[Strongkored]

If no one throws money at these ponzi's, they will indeed die. The problem however is the greed aspect of a lot people here. They know very well that it is a ponzi, but still they don't care and are only interested in the potentially quick returns. That they invest money into something very risky, that's one thing, but what bothers me is that these people willingly put money into a scam. They pay and lose money, and thus support these schemes to make even more victims. That's the dumbest thing ever.

I think, people think if they could use the time to gain an advantage by following ponzi program since its inception. Then they will be able to make a profit before the site will  scam. Which also bothers me is why people are willing to take risks that even they already know that they scam: D LOL

[TraderTimm]

If no one throws money at these ponzi's, they will indeed die. The problem however is the greed aspect of a lot people here. They know very well that it is a ponzi, but still they don't care and are only interested in the potentially quick returns. That they invest money into something very risky, that's one thing, but what bothers me is that these people willingly put money into a scam. They pay and lose money, and thus support these schemes to make even more victims. That's the dumbest thing ever.

I think, people think if they could use the time to gain an advantage by following ponzi program since its inception. Then they will be able to make a profit before the site will  scam. Which also bothers me is why people are willing to take risks that even they already know that they scam: D LOL

Change a few words and you could be talking about the Ethereum DAO, lol.

PirateAt40 was a goading douchebag. At one point, he taunted everyone that he wouldn't be caught. So much for that claim.... I'd give him 20 years instead of 1 1/2.