| WASHINGTON, July 23
WASHINGTON, July 23 U.S. securities regulators
on Tuesday charged a Texas man with running a Ponzi scheme by
offering Bitcoin virtual currency investments over the Internet
and pocketing some of the proceeds for personal expenses.
The U.S. Securities and Exchange Commission alleged Trendon
Shavers, the founder of Bitcoin Savings and Trust, falsely
promised investors up to 7 percent in weekly interest, but
instead used much of the funds from new investors to cover
withdrawals by other investors.
Separately, the SEC also warned investors against the
dangers of potential scams involving virtual currencies like