But according to the decision, Shavers used new bitcoin to repay earlier investors, diverted some to personal accounts at the now-bankrupt Mt. Gox exchange and elsewhere, and spent some investor funds on rent, food, shopping and casino visits. <\/p>\n
\"The collective loss to BTCST investors who suffered net losses (there were also net winners) was 265,678 bitcoins, or more than $149 million at current exchange rates,\" wrote Mazzant, who sits in Sherman, Texas. <\/p>\n
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Mazzant held Shavers and his company liable to give up $38.6 million of illegal profits plus $1.8 million in interest. Each defendant was also fined $150,000. <\/p>\n
The SEC announced the case on July 23, 2013, the same day it warned investors to be on alert for potential scams involving bitcoin and other \"cutting-edge\" investments. <\/p>\n
The case is SEC v. Shavers et al, U.S. District Court, Eastern District of Texas, No. 13-00416. <\/p>\n
Read More3 reasons Wall Street can't stay away from bitcoin <\/p>\n
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Read the original here: But according to the decision, Shavers used new bitcoin to repay earlier investors, diverted some to personal accounts at the now-bankrupt Mt. Gox exchange and elsewhere, and spent some investor funds on rent, food, shopping and casino visits. Continue reading
\n$40.7M awarded in bitcoin Ponzi case<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"