3 ms·

I ask why, if he got 4.5 in investments and it grew to 60, why not just pay back investors the 7% and still pocket some nice earnings?

• jbert 13y ago
  Perhaps his debt was in bitcoins, so it also increased (as priced in USD)
  • javert 13y ago
    That is correct. Trendon's whole scheme would have worked if the price of bitcoin had started falling, instead of rising so much.
    • javert 13y ago
      No, really, the debt to depositors was owed in bitcoins. Don't know why I'm getting downvoted. It is a fact.
      • joesb 13y ago
        If he convert all bitcoin to USD and bitcoin value went down, he can the previous USD to buy the promised bitcoin and payback.
• DanBC 13y ago
  > Shavers raised at least 700,000 Bitcoin in BTCST investments, which amounted to more than $4.5 million based on the average price of Bitcoin in 2011 and 2012 when the investments were offered and sold. Today the value of 700,000 Bitcoin exceeds $60 million. > [...] Shavers used Bitcoin from new investors to make purported interest payments and cover investor withdrawals on outstanding BTCST investments. Shavers also diverted investors’ Bitcoin for day trading in his account on a Bitcoin currency exchange, and exchanged investors’ Bitcoin for U.S. dollars to pay his personal expenses. > He transferred at least 150,649 Bitcoin to his personal account at an online Bitcoin currency exchange. Shavers suffered a net loss from his day trading, > Shavers transferred $147,102 from his personal account at the online Bitcoin currency exchange to accounts he controlled at an online payment processor as well as his personal checking account. He used this money to pay his rent, utilities, and car-related expenses as well as for food and retail purchases and gambling.