Bitcoin Savings & Trust Operator Pleads Not Guilty to Fraud

Trendon Shavers, Bitcoin Savings & Trust (BS&T) operator, has pleaded not guilty to fraud charges in the first high profile bitcoin Ponzi scheme, before a New York District court. He is accused of misappropriating 146,000 worth of bitcoins.

If proven guilty, he will face up to 40 years in prison, as well as millions of dollars in potential fines and penalties. He has been accused of one count of securities fraud and one count of wire fraud.

According to court documents, U.S. Attorney Preet Bharara charged, "Trendon Shavers managed to combine financial and cyber fraud into a Bitcoin Ponzi scheme that offered absurdly high interest payments, and ultimately cheated his investors out of their Bitcoin investments. This case, the first of its kind, should serve as a warning to those looking to make a quick buck with unsecured currency."