[Infowarrior] - Federal judge: Bitcoin, “a currency,” can be regulated under American law

[Richard Forno]

Federal judge: Bitcoin, “a currency,” can be regulated under American law

Bitcoin Savings and Trust's founder has been accused of running a Ponzi scheme.

by Cyrus Farivar - Aug 7 2013, 12:55pm EDT

In the case of a Texas man accused of massive Bitcoin-based fraud, a federal judge has ruled that bitcoins are “a currency or form of money," and are therefore subject to relevant US laws.

The case revolves around Bitcoin Savings and Trust (BTCST), a virtual Bitcoin-based hedge fund that many suspected of being a scam. BTCST shut down in August 2012, and the Securities and Exchange Commission (SEC) last month formally charged founder Trendon Shavers with running a Ponzi scheme.

As we previously reported, the SEC has said Shavers “raised at least 700,000 bitcoins in BTCST investments, which amounted to more than $4.5 million based on the average price of bitcoins in 2011 and 2012 when the investments were offered and sold.”

Shavers did not immediately respond to our request for comment.

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http://arstechnica.com/tech-policy/2013/08/federal-judge-bitcoin-a-currency-can-be-regulated-under-american-law/

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