The US Securities and Exchange Commission (SEC) has charged a Texas man and his organization for defrauding investors in a Ponzi scheme involving bitcoin.
Trendon T. Shavers, owner of Bitcoin Savings and Trust (BTCST) under usernames 'Pirate' and 'pirateat40' solicited bitcoin investments equating to over 700,000 BTC.
Shaver's promised a weekly 7% ROI based on the company's bitcoin market arbitrage activity in what appears to be nothing more than a Ponzi scheme using new investor funds to pay interest to existing investors. The SEC is charging Shavers and BTCST with violating anti-fraud and registration provisions of security laws as well as seeking a court order to freeze all assets of the company and the perpetrator.
Look folks, anyone offering 7% per week is full of shit to begin with. Especially with something as volatile as bitcoin.
Remember...if it walks like a duck.