Plea Deal Reached in Trendon Shavers Bitcoin Ponzi Scheme

Trendon Shavers, accused of running a multimillion dollar Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term with bitcoins, has reached a plea deal with prosecutors.

Shavers, of McKinney, Texas, had originally pleaded not guilty back in March this year. Between September 2011 and September 2012, his Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Savings & Trust (BTCST) allegedly raised 764,000 bitcoins, worth roughly $4.5 million at the time, from investors. He promised returns of 7% per week, or 3,641% per year, claiming to employ market arbitrage strategies.

According to prosecutors, he in fact used new investor money to back prior investors. Some funds were allegedly invested on MtGox, at one point the world's largest bitcoin exchange, which collapsed in February 2014. He also allegedly spent funds on lavish personal items. 48 investors reportedly suffered losses.

“I know what I did was wrong and am very sorry,” Shavers reportedly said in a court hearing.

Prosecutors said it was the first criminal fraud case involving digital currency.

He was fined $40.7 million by the US Securities and Exchange Commission (SEC) in September 2014 and was arrested in November.

According to the plea deal, Shavers would plead guilty to one count of securities fraud. He will be sentenced to between 33 and 41 months in prison, provided that he does not appeal. He will also pay a $5 million fine.

Sentencing is scheduled for February 3.