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Submission Summary: 0 pending, 7 declined, 2 accepted (9 total, 22.22% accepted)

Submission + - SEC alleges Bitcoin Savings & Trust is a ponzi scheme (nytimes.com)

craighansen writes: According to the complaint http://www.sec.gov/litigation/complaints/2013/comp-pr2013-132.pdf During 2011-2012, Trendon Shavers, operating under the user-name pirateat40, collected investments of over 700,000 Bitcoin from at least 66 "investors" with a valuation of $4.5M with the promise of at much as 7% weekly returns. These "investors" received about 500,000 Bitcoins in returns, so on average, they're probably much better-off than investors in Madoff's scheme.

Nevertheless, with the rising value of Bitcoins, the $4.5M investments would be worth $65M at recent pricing if they had actually been left in Bitcoins, which approximates the 1% per day returns that the scheme promised.

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