Detail Analysis
Date:
Status:
Count:
Contributor:
August 29, 2012
Verified
1
zerofriction.io
Loss Amount:
5,300,000
Recovered Amount:
-
Currency:
Dollars, BTC
KYC By:
Audit By:
None
None
Website:
No data
Twitter:
No data
Discord:
No data
Telegram:
No data
Medium:
No data
Github:
No data
Key Indicators
Platform:
Type:
Category:
Method:
Investment
Scams
Extended Method:
Ponzi scheme
Data Sources:
Between September 2011 and September 2012, Shavers’ Bitcoin Savings & Trust (BTCST) allegedly raised 764,000 bitcoins, worth roughly $4.5 million at the time (and over half a billion USD at current Bitcoin exchange rates), from clients that trusted him to invest the funds for them. These investors were promised returns of 7% per week, or 3,641% per year, claiming to employ market arbitrage strategies. In 2014 Shavers was arrested for running a bitcoin-related Ponzi scheme and was ordered to pay $40.7 million in fines and sentenced to one and half years in prison.
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