Bitcoin Ponzi scheme operator ordered to pay over $40 million

The operator of a Bitcoin Ponzi scheme has been ordered to pay back over $ 40 million in profits and interest gained from investors’ money. The operator, Trendon Shavers, ran the scheme through his company Bitcoin Savings & Trust for at least a year and a half between 2011 and 2012. In 2012, when he shut down the company, investors began to revolt, and about a year later he was charged by the SEC with having taken bitcoins that were worth $ 4.5 million at the time of investment. The court’s says that the total loss to investors was, at yesterday’s exchange rate, closer to $ 149 million; the total that he’s ordered to repay is based on an averaging of bitcoin’s volatile exchange rate since the scheme collapsed.

Shavers, who had been…

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