The Securities and Exchange Commission announced late last week that it has filed an action involving what it claims is a Bitcoin investment scam. The case involves the alleged fraudulent offers and sales of securities in a Bitcoin-denominated alleged Ponzi scheme founded and operated by a 30-year old Trendon T. Shavers from Texas.
The complaint alleges Shavers was the founder and operator of BTCST (formerly known as First Pirate Savings & Trust) an unincorporated entity with physical “brick and mortar” operating presence or location. On or about November 3, 2011, Shavers, under the Internet name pirateat40, posted a general solicitation for BTCST, entitled “Looking for Lenders,” on the Bitcoin Forum an online forum dedicated to BTC where, among other things, numerous BTC-denominated investment opportunities were posted. Shavers continued to post what the SEC alleges was martially false or misleading statements as to the purported investment opportunity.