{"id":305768,"date":"2021-09-22T12:11:49","date_gmt":"2021-09-22T16:11:49","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=305768"},"modified":"2021-09-22T12:17:11","modified_gmt":"2021-09-22T16:17:11","slug":"retrospective-in-2014-trendon-shavers-was-charged-40-million-fine-for-one-of-the-first-largescale-bitcoin-frauds","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/retrospective-in-2014-trendon-shavers-was-charged-40-million-fine-for-one-of-the-first-largescale-bitcoin-frauds","title":{"rendered":"Retrospective: In 2014, Trendon Shavers Was Charged $40 Million Fine for One of the First Largescale Bitcoin Frauds"},"content":{"rendered":"

In 2014 we covered one of the largest crypto frauds up to date. Read our article to learn more about bitcoin frauds history:<\/em><\/p>\n

The founder of the bogus \u201cBitcoin Savings and Trust\u201d (BTCST) has been spanked \u2013 hard. Trendon Shavers has been fined $40 million for operating a Ponzi scheme in the Bitcoin universe.<\/p>\n

According to the complaint filed by the Securities and Exchange Commission (SEC), in July of last year, \u201cFrom at least September 2011 to September 2012, Shavers, operating under the Internet name \u201cpirateat40,\u201d offered and sold BTCST investments over the Internet, raising more than 700,000 BTC in principal investments from BTCST investors, or more than $4.5 million based on the daily average price of BTC when the BTCST investors purchased their BTCST investments.\u201d<\/p>\n

Shavers conned people by promising \u201cinvestors up to 7% interest weekly based on BTCST\u2019s purported BTC market arbitrage activity.\u201d<\/p>\n

However, what Shavers did was take the bitcoin from someone who was newly invested and give it to the investors who had bought-in earlier on, plus taking some for himself. A classic Ponzi scheme.<\/p>\n

\u201cShavers used new BTCST investors\u2019 BTC to pay the promised returns on outstanding BTCST investments and misappropriated BTCST investors\u2019 BTC for his personal use,\u201d the complaint said.<\/p>\n

Shavers began the scam on a bitcoin forum with a thread entitled, \u201cLooking for Lenders.\u201d Looking for minimum investments of 50 bitcoins, he claimed that he was in the business of \u201cselling BTC to a group of local people.\u201d He promised 1% daily interest until a user either withdrew their funds or he could no longer be profitable.<\/p>\n

The scheme continued until August 2012. During this time, Shavers\u00a0had increased the minimum investment to 100 BTC, grown the entire Ponzi scheme to over 700,000 BTC, and had misappropriated $147,102 of clients\u2019 money for his own use, which the SEC complaint said included \u201crent, car-related expenses, utilities, retail purchases, casinos, and meals.\u201d<\/p>\n

U.S. Magistrate Judge Amos L. Mazzant found both the Bitcoin Savings and Trust and Shavers guilty, and levied the $40 million fine. At this time, it is uncertain if the judge will also sentence Shavers to prison.<\/p>\n

Read more:<\/strong><\/p>\n

How to safely buy Bitcoin<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In 2014 we covered one of the largest crypto frauds up to date. Read our article to learn more about bitcoin frauds history: The founder […]<\/a><\/div>","protected":false},"author":1822,"featured_media":274634,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\nRetrospective: One of the Biggest 2014 Bitcoin Frauds (Trendon Shavers)<\/title>\n<meta name=\"description\" content=\"In 2014 we covered one of the largest crypto frauds up to date. Read our article to learn more about bitcoin frauds history: The founder of the bogus\" \/>\n<meta name=\"robots\" content=\"max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retrospective: In 2014, Trendon Shavers Was Charged $40 Million Fine for One of the First Largescale Bitcoin Frauds\" \/>\n<meta property=\"og:site_name\" content=\"InsideBitcoins.com\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-22T16:11:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-22T16:17:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/10\/pexels-david-mcbee-730547.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gary McFarlane\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gary McFarlane\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#article\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\"},\"author\":{\"name\":\"Gary McFarlane\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/cc58fa44523ada273db1e155bcc9a1d5\"},\"headline\":\"Retrospective: In 2014, Trendon Shavers Was Charged $40 Million Fine for One of the First Largescale Bitcoin Frauds\",\"datePublished\":\"2021-09-22T16:11:49+00:00\",\"dateModified\":\"2021-09-22T16:17:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\"},\"wordCount\":364,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"articleSection\":[\"More Crypto News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#respond\"]}],\"copyrightYear\":\"2021\",\"copyrightHolder\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#primaryimage\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\",\"url\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\",\"name\":\"Retrospective: One of the Biggest 2014 Bitcoin Frauds (Trendon Shavers)\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/#website\"},\"datePublished\":\"2021-09-22T16:11:49+00:00\",\"dateModified\":\"2021-09-22T16:17:11+00:00\",\"description\":\"In 2014 we covered one of the largest crypto frauds up to date. Read our article to learn more about bitcoin frauds history: The founder of the bogus\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\"]}],\"primaryImageOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#primaryimage\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#primaryimage\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/insidebitcoins.com\/#website\",\"url\":\"https:\/\/insidebitcoins.com\/\",\"name\":\"InsideBitcoins.com\",\"description\":\"Search & Compare Brokers within Crypto, Forex & Stocks\",\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/insidebitcoins.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/insidebitcoins.com\/#organization\",\"name\":\"InsideBitcoins\",\"url\":\"https:\/\/insidebitcoins.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg\",\"width\":195,\"height\":32,\"caption\":\"InsideBitcoins\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/cc58fa44523ada273db1e155bcc9a1d5\",\"name\":\"Gary McFarlane\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/09\/gary1-1-96x96.jpg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/09\/gary1-1-96x96.jpg\",\"caption\":\"Gary McFarlane\"},\"description\":\"Gary is the editor of insidebitcoins.com. He is also the former crypto analyst at interactive investor, the UK's second-largest investment platform. He has been active in the digital asset space since 2013, when he initiated coverage of bitcoin at respected investment monthly magazine Money Observer.\",\"url\":\"https:\/\/insidebitcoins.com\/news\/author\/gary\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Retrospective: One of the Biggest 2014 Bitcoin Frauds (Trendon Shavers)","description":"In 2014 we covered one of the largest crypto frauds up to date. Read our article to learn more about bitcoin frauds history: The founder of the bogus","robots":{"max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768","og_locale":"en_US","og_type":"article","og_title":"Retrospective: In 2014, Trendon Shavers Was Charged $40 Million Fine for One of the First Largescale Bitcoin Frauds","og_site_name":"InsideBitcoins.com","article_published_time":"2021-09-22T16:11:49+00:00","article_modified_time":"2021-09-22T16:17:11+00:00","og_image":[{"width":1920,"height":1440,"url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/10\/pexels-david-mcbee-730547.jpg","type":"image\/jpeg"}],"author":"Gary McFarlane","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Gary McFarlane","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#article","isPartOf":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768"},"author":{"name":"Gary McFarlane","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/cc58fa44523ada273db1e155bcc9a1d5"},"headline":"Retrospective: In 2014, Trendon Shavers Was Charged $40 Million Fine for One of the First Largescale Bitcoin Frauds","datePublished":"2021-09-22T16:11:49+00:00","dateModified":"2021-09-22T16:17:11+00:00","mainEntityOfPage":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768"},"wordCount":364,"commentCount":0,"publisher":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"articleSection":["More Crypto News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#respond"]}],"copyrightYear":"2021","copyrightHolder":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"image":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#primaryimage"}},{"@type":"WebPage","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768","url":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768","name":"Retrospective: One of the Biggest 2014 Bitcoin Frauds (Trendon Shavers)","isPartOf":{"@id":"https:\/\/insidebitcoins.com\/#website"},"datePublished":"2021-09-22T16:11:49+00:00","dateModified":"2021-09-22T16:17:11+00:00","description":"In 2014 we covered one of the largest crypto frauds up to date. Read our article to learn more about bitcoin frauds history: The founder of the bogus","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768"]}],"primaryImageOfPage":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#primaryimage"},"image":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768#primaryimage"}},{"@type":"WebSite","@id":"https:\/\/insidebitcoins.com\/#website","url":"https:\/\/insidebitcoins.com\/","name":"InsideBitcoins.com","description":"Search & Compare Brokers within Crypto, Forex & Stocks","publisher":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/insidebitcoins.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/insidebitcoins.com\/#organization","name":"InsideBitcoins","url":"https:\/\/insidebitcoins.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg","width":195,"height":32,"caption":"InsideBitcoins"},"image":{"@id":"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/cc58fa44523ada273db1e155bcc9a1d5","name":"Gary McFarlane","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/image\/","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/09\/gary1-1-96x96.jpg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/09\/gary1-1-96x96.jpg","caption":"Gary McFarlane"},"description":"Gary is the editor of insidebitcoins.com. He is also the former crypto analyst at interactive investor, the UK's second-largest investment platform. He has been active in the digital asset space since 2013, when he initiated coverage of bitcoin at respected investment monthly magazine Money Observer.","url":"https:\/\/insidebitcoins.com\/news\/author\/gary"}]}},"modified_by":"Velimir Petrovic","_links":{"self":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768"}],"collection":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/users\/1822"}],"replies":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/comments?post=305768"}],"version-history":[{"count":0,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/305768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/media\/274634"}],"wp:attachment":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/media?parent=305768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/categories?post=305768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/tags?post=305768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}