Creator of the first cryptopyramid pleaded guilty
Creator of the first cryptocurrency pyramid scheme Trenton Shavers pleaded guilty in court. He also said that their actions are deeply misguided and brought to repentance.
33-year-old Texas resident has earned 764 thousand BTC (4.5 million dollars), using the so-called "Ponzi scheme", that means paying interest to old depositors at the expense of new participants of a pyramid.
Rate, announced by Shavers, was 7% per week, i.e. 3641% per year.
Company Bitcoin Savings & Trust had existed for a year from September 2011 to September 2012 and at the peak of popularity took control of 7% of the cryptocurrency turnover.
Agency Reuters informs that Shavers used depositor’s money for personal purposes: he bought a used BMW M5, visited casino and SPA and dined in Las Vegas for $ 1000.
Sentence will be pronounced on 3 February 2016. Shavers refused to appeal the sentence, if the designated period will not exceed 41 months.