Man Behind Massive Bitcoin Ponzi Scheme Gets 18 Months in Prison

The man who at one point managed to amass seven percent of all the Bitcoin in the world will have to serve an 18-month prison sentence for orchestrating the most massive Ponzi scheme involving the digital currency.

Trendon T. Shavers, 33, of Texas, aka pirateat40, was the founder of Bitcoin Savings and Trust (BCS&T), a company that offered and sold Bitcoin investments online.

From September 2011 to September 2012, Shavers advertised his business on the official Bitcoin forum, where he provided users with the opportunity to invest in his fund and receive a seven percent weekly interest and an annualized interest rate of 3,641 percent.

BCS&T amassed investments of 146,000 Bitcoin

Users flocked at the opportunity to invest Bitcoin in Shavers' company and collect weekly payments as a bonus.

According to court documents, BCS&T received around 146,000 Bitcoin in investments, seven percent of all the Bitcoin found in circulation at that point in time.
...