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Trendon T. Shavers of McKinney, founder and operator of Bitcoin Savings and Trust, is accused of defrauding investors in a Ponzi scheme, according to the Wall Street Journal.
The scheme is purported by the Security and Exchange Commission to have involved bitcoin, a peer-to-peer payments system that allows people to pay each other from virtual accounts.
According to a Journal story by John Kell, Shavers allegedly raised at least 700,000 bitcoin, amounting to more than $4.5 million based on the average price of bitcoin in 2011 and 2012 when the investments were sold. Today, the SEC says the value of 700,000 bitcoin exceeds $60 million.
The SEC alleges Mr. Shavers promised investors up to 7% weekly interest.
For the complete story on wsj.com, please click here.