The Securities and Exchange Commission (SEC) charged Trendon T. Shavers, the founder and operator of Bitcoin Savings and Trust, with perpetrating a bitcoin-based ponzi scheme on July 23, Business Insider reported.
The complaint alleges that Shavers raised $4.5 million in bitcoin through the company by promising investors 7 percent weekly return on bitcoin market activity.
Instead, the SEC said Shavers used the money to fund personal expenses – including food, rent, gambling and personal day trading.
For more on the developing story, read the full report here.
