In the case of a Texas man accused of massive Bitcoin-based fraud, a federal judge has ruled that bitcoins are “a currency or form of money,” and are therefore subject to relevant US laws. The case revolves around Bitcoin Savings and Trust (BTCST), a virtual Bitcoin-based hedge fund that many suspected of being a scam. BTCST shut down in August 2012, and the Securities and Exchange Commission (SEC) last month formally charged founder Trendon Shavers with running a Ponzi scheme. As we previously reported, the SEC has said Shavers “raised at least 700,000 bitcoins in BTCST investments, which amounted to more than $4.5 million based on the average price of bitcoins in 2011 and 2012 when the investments were offered and sold.” Shavers did not immediately respond to our request for comment.
Like it? Tweet it.
"Court: Bitcoin is a Currency, Can Be Regulated by United States" by @ShellyPalmer
Get Briefed Every Day!
Subscribe to our daily newsletter featuring current events and the top stories in technology, media, and marketing.Subscribe