Bloomberg Law
Sept. 22, 2014, 4:00 AM

Texas Man, His Company Must Pay
$41M in SEC Suit Over Bitcoin Scheme

A Texas man and/or the online Bitcoin investment scheme he founded and operated must pay almost $41 million in disgorgement, prejudgment interest and civil penalties, the U.S. District Court for the Eastern District of Texas ordered Sept. 18 (SEC v. Shavers).

Granting the Securities and Exchange Commission’s summary judgment motion, the court also enjoined the defendants from future securities law violations.

Alleged Ponzi.

In July 2013, the SEC filed suit against Trendon Shavers and Bitcoin Savings and Trust, contending that they ran a Ponzi scheme involving bitcoins—a virtual currency traded on online exchanges 45 SRLR 1392, 7/29/13, 142 Securities Law Daily, 7/24/13, 142 DER EE-7, 7/24/13