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Texas man charged with running $4.5 million Bitcoin Ponzi scheme

By Shawn Knight
Jul 25, 2013
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  1. The Securities and Exchange Commission has charged Trendon T. Shavers with running an illegal Ponzi scheme using Bitcoins. Using the online handle “pirateat40,”authorities claim the Texas man received some 700,000 Bitcoins from various investors through an unregistered fund he created...

    Read more
     
  2. hitech0101

    hitech0101 TS Enthusiast Posts: 429   +19

    Pirateat40 is the part which baffles me rest I have heard before
     
  3. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 6,109   +1,523

    Next thing you know Bitcoins will be taxable, to help pay for protection against fraud. This is only the first step.
     
  4. Nima304

    Nima304 TS Enthusiast Posts: 304   +37

    This reminds me a lot of the Bernard Madoff case.
     
  5. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 3,174   +761

    The only thing I know about Bitcoins is that it's some kind of internet currency so it was only a matter of time before somebody exploited it.
     
  6. treetops

    treetops TS Evangelist Posts: 1,685   +60

    Paypal>bitcoin..?
     
  7. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,126   +729

    Oh sure, someone pulls a Ponzi scheme with bitcoins and the SEC gets their undies in a bundle, but the govt does with our social security and it's just business as usual.
     
  8. davislane1

    davislane1 TS Evangelist Posts: 1,426   +552

    So, basically, you're contempt is directed towards the fact that this guy wasn't sued for patent infringement?
     
    treetops likes this.
  9. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,126   +729


    It was more sarcasm than contempt, but why would he be sued for patent infringement?
     
  10. davislane1

    davislane1 TS Evangelist Posts: 1,426   +552

    MilwaukeeMike ". . . but the govt does with our social security and it's just business as usual."

    The patent for the Ponzi methodology is held by the U.S. gov't; he didn't pay royalties.
     
    MilwaukeeMike likes this.
  11. treetops

    treetops TS Evangelist Posts: 1,685   +60

    lol
     
     
  12. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,126   +729


    Gotcha... and you're right... he should pay royalties :)
     
  13. Sniped_Ash

    Sniped_Ash TS Enthusiast Posts: 127   +36

    Anyone who scams bitheads out of their not-actually-hard-earned bitcoins should be commended, not tossed into the slammer.
     
  14. captaincranky

    captaincranky TechSpot Addict Posts: 10,815   +922

    I'm still waiting to be convinced that Bitcoins 'exist' and have 'value', let alone the fact that it's a crime to scam someone out of imaginary 'money'.

    People should probably take their 'Bitcoins', and piss them away in 'Second Life', while forgetting to eat in the meantime. Maybe they'll just melt away into cyber space, and only manifest themselves as spam on All Soul's Night.

    I think the internet gets taken way, way, too seriously.

    The only fun part is the porn, and they keep threatening to censor that.
     
  15. alcarin2030

    alcarin2030 TS Enthusiast Posts: 105   +12

    The reason Bitcoins "exist" and have "value" is because people invest their time to find them. They are basically a value on people's time and effort.
     
  16. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 6,109   +1,523

    Allot of things have great value, until you try and sell them to someone without imagination.
     
    captaincranky likes this.
  17. captaincranky

    captaincranky TechSpot Addict Posts: 10,815   +922

    They are basically a waste of people's time and effort.......Fixed!

    Face it, shoving your nose up the back of somebody's mystery hard drive looking for Bitcoins, is hardly hunting dinosaur skeletons in Manchuria, or mummies in Egypt.

    So far, nobody's been able to sell me Jesus, Alla, Yahway, or any incarnation of God. That said, it's unlikely anyone will ever sell me this.

    So spare me, and marshal your limited clock cycles for the great internet currency delusion...., Er, I mean "hunt".
     
    cliffordcooley likes this.
  18. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 6,109   +1,523

    I have Folding@Home in my signature. I understand that project. It is strictly a donation project with a goal of finding a cure for disease, by computational methods.

    This Bitcoin Mining makes no sense to me, other than deception and fraudulent trading. What are the computational goals and why are they valued? I'm with captaincranky, this subject of Bitcoin Mining and trading smells of BS. It's basically the same as passing a buck around Paypal. The one that decides to keep the buck is the one who is labeled the thief, unless you can prove you are the owner of the buck.

    Everyone that uses Bitcoin from what I can gather, does so because it is not governed. But yet here we are in the first stages of misuse, asking for courts to help in governing. What a load of horse hockey, behind the very concept of using Bitcoins.
     


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