Texan Man Pleads Guilty In NY Bitcoin Securities Fraud Case
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NEW YORK (AP) — A Texas man has pleaded guilty to securities fraud in what federal authorities have described as the first bitcoin securities fraud case.
Trendon Shavers, of McKinney, pleaded guilty in New York Monday to securities fraud on his 33rd birthday. Shavers told a magistrate judge that he knew what he was doing was wrong when he promised investors as much as a 1 percent daily gain if they entrusted him with their bitcoins. Prosecutors say Shavers possessed 7 percent of all bitcoins in public circulation at one point.
Shavers said he carried out the scheme in 2011 and 2012 by making false statements to investors.
Shavers was arrested in November and released on bail. A plea agreement recommends he spend roughly three years in prison.
Sentencing was set for Feb. 3.
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