- Instead of investing cash, Shavers used it to pay early investors in the scheme and to amass bitcoins.
- Shavers has been ordered by the court to repay the money which investors lost.
- Investors who backed the scheme lost about $1.23m (£940,000) in total, said Shavers’ lawyers.
- In 2011-12, when the scheme was operating, this was worth approximately $4.5m, comprising of 7% of all bitcoins in circulation.
- Only a fraction of the bitcoins bought were invested and the rest were used to pay back those who were first to join the scheme.
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@BBCTech: “US man jailed over bitcoin fraud scheme”
A Texan man has been sentenced to 18 months in jail for running a fraudulent Ponzi-style scheme based around the Bitcoin virtual currency.
US man jailed over bitcoin fraud scheme