VICE - Lawyer Reveals Details About the Man Behind Bitcoin

@AlpacaSW @robzon Pirateat40 (Trendon Shavers)comes to mind: 7% interest in Bitcoin per week! And the early exchang… https://t.co/qTsdKUl7u7 - Crypto Insider Info - Whales's

Posted at: March 28, 2018 at 08:23PM
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@AlpacaSW @robzon Pirateat40 (Trendon Shavers)comes to mind: 7% interest in Bitcoin per week! And the early exchang… https://t.co/qTsdKUl7u7
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Trendon Shavers (pirateat40) arrested today for his 2011 Bitcoin ponzi scheme that stole 750,000 bitcoins, the "Bitcoin Savings and Trust"

Trendon Shavers (pirateat40) arrested today for his 2011 Bitcoin ponzi scheme that stole 750,000 bitcoins, the submitted by approx- to Bitcoin [link] [comments]

Trendon Shavers Sent to Jail Over Bitcoin Savings and Trust Ponzi Scheme | Finance Magnates

Trendon Shavers Sent to Jail Over Bitcoin Savings and Trust Ponzi Scheme | Finance Magnates submitted by reminesjoseph to DeepDotWeb [link] [comments]

Shower Thought: For many us, bitcoin was reason why we first shared our passport/ID, bank account details, and money with 16-30 year old strangers from different countries (e.g. Zhou Tong, Mark Karpeles, Matt Ulbricht, Trendon Shavers, Nejc Kodrič, etc.)

At the same time, we're interested in bitcoin because of its decentralization and how it lets us control our own money. Clearly, we're willing to let decentralization take a backseat when greed clouds our vision. And when greed clouds our vision, we're willing to let this guy, or this guy or these guys literally hold thousands of our dollars. Seriously, if you saw these guys in any other context besides "I can get rich!," would you let them hold five of your dollars?
We've created the exact same centralization and systems of middlemen only it's worse because our deposits are not insured and we've given up all consumer protections.
So here's to that. Let's drink a toast and learn to laugh at ourselves.
submitted by slowmoon to Bitcoin [link] [comments]

Trendon Shavers Sent to Jail Over Bitcoin Savings and Trust Ponzi Scheme

Trendon Shavers Sent to Jail Over Bitcoin Savings and Trust Ponzi Scheme submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Trendon Shavers Sent to Jail Over Bitcoin Savings and Trust Ponzi Scheme

Trendon Shavers Sent to Jail Over Bitcoin Savings and Trust Ponzi Scheme submitted by knight222 to btc [link] [comments]

I am the BearWhale: UASF Now!

A signed version of this message can be found here https://pastebin.com/Lp5Djs5R
Hello. I am the BearWhale. After a series of bad experiences with the banking system, I invested most of my life savings into bitcoin when the price was fairly low, around $8. For years I was a HODLer. I was holding when Trendon Shavers ripped everyone off. I was holding when the price was over a thousand, and I held after MtGox imploded. I believe strongly in Bitcoin’s decentralized promise of displacing immoral national currencies.
The price kept drifting downwards until finally at a little over $300 I had enough. I sold off everything, based on an accumulation of information I gathered mostly from social media such as bitcointalk.org and reddit:
At this point I should state that I am a highly technical person. I understand all of the math behind the bitcoin whitepaper and the software that powers it. Although, I am not a security expert nor am I a cypherpunk - only a little experience in the type of adversarial thinking necessary to be a competent steward of the technology. I don’t regret selling, as I made an enormous profit. The decision was a rational one based on available information. However, in 2017 I went all-in on bitcoin again and here’s why:
None of the supposed facts which motivated my decision to sell were correct. It was all a carefully crafted and funded disinformation campaign launched by Roger Ver and his cronies, perhaps Jihan Wu, to discourage improvements to the bitcoin protocol to achieve financial gain at the expense of the community.
Once I recognized the moves to discredit the core developers for what it was, a covertly operated smear campaign fought on social media, funded by enormous enrichment from bitcoin, carried out with sock puppets and appeals to emotion, I looked at bitcoin and the greater community again with a more critical eye and I came to the following conclusions:
Although I am of course an adult fully responsible for my decisions, I want to make it clear that Roger Ver’s agenda was successful at convincing me that bitcoin had a “governance crisis” and was at risk of being overtaken by altcoins.
My reason for this open letter s simple: I want the community to know that I fully support the core developers. I am strongly in favor of UASF as a mechanism for liminating the centralizing effect of miner control illusions. I support SegWit as a sensible technology for moving Bitcoin forward. I reject a block-size increase hard fork at the present time. I reject a phony “compromise.” And I especially resent and reject a consortium of suits coming to an “agreement” on what source-code base will be named “bitcoin” without that code base being thoroughly vetted over a suitable long time-frame by industry professionals. Those industry professionals include Gregory Maxwell and most of the people who participate regularly on the bitcoin developers mailing list and contribute pull requests to the bitcoin-core repository.
tl;dr; I am the BearWhale: I sold Bitcoin for the wrong reasons, and now I am all-in and long bitcoin again.
submitted by the_bearwhale to Bitcoin [link] [comments]

Famous Bitcoiners who left crypto

I was thinking of a compilation of people who left crypto for various reasons.
Who else?
submitted by nopara73 to Bitcoin [link] [comments]

ICO's are the new IPO's. Making Ethereum the new GBLSE

First, I may need to provide some background, as many of you may not have been around in 2012 and 2013, so you may not remember GLBSE, BTC.TC, havelock, bitfunder and a few other "bitcoin stock exchanges". On those exchanges, companies could list securities like company shares and bonds, which where traded for bitcoin.
Initially, mining bonds where the most popular security, allowing people to invest in bitcoin mining without having to own and operate any hardware, while allowing miners to raise capital and sell off the risk of future difficulty increases. Revenue from mining was then paid to bond holders as "dividends". In theory, a sound concept and the precursor to cloud mining. In practice however, these bonds quickly became a mania. They where trading at prices that made no economic sense at all, anyone with a calculator could easily see it was impossible they would yield a positive ROI. Miners and scammers quickly caught on to that, and sold more bonds then they had hardware for. But they kept rising in price, and people kept buying them, expecting to sell them later with profit.
Soon after, all kinds of companies launched IPO's on these exchanges. Some where legit, many dubious, most where pretty obvious scams. It didnt matter, IPO's where as much a hype as ICO's today, and virtually never failed to sell out in record times, raising millions of dollars. Almost nothing was scrutinized, anyone scammer with a tiny amount of photoshop knowledge or anyone promising to achieve some ridiculous ROI had no problem raising millions.
After the companies, came the investment funds. Someone raised bitcoins through an IPO, and used that money to trade in other securities listed on that same exchange. Then they launched a second IPO for another fund, and used fund A to buy shares in fund B, and fund B to buy shares in fund A. Prices went through the roof. You couldn't make up stuff like that, it was hilarious.
Almost nothing that was traded on those exchanges, had any real value. A few notable exceptions include Asicminer, which raised money to develop an asic, actually managed to get it produced as one of the first ever bitcoin mining asics, sold in large quantities and made a huge profit, paying back investors through dividens many times the IPO value. It was the largest success story by far, but even that ended with an exit scam when the anonymous founder ran off eventually.
Around 2013, the SEC intervened, closed a few of the largest exchanges, charged and fined some of the operators and issuers. Other exchanges collapsed or vanished. Tens of thousands of BTC where lost. Im not aware of any company that was launched on any of those exchanges that still operates, except for the gambling site satoshidice (which was among the ones fined by the SEC).
What caused this to happen? The enormous rise in value of bitcoin created a group of early-investor millionaires, who believed in crypto currency, who where accustomed to double or triple digit gains in a very short time and who had money to burn. Many of them got rich "by accident", not because they did a lot of due diligence or understood the risk/rewards or even the technology. This gullibility was clearly seen with Trendon Shavers aka Pirateat40, who at that time operated a gigantic, half million bitcoin ponzi scheme by promising 7% weekly returns. These people where very likely to invest large sums of money in risky crypto related startups, expecting a repeat of the success of their early bitcoin investment. This created a self fulfilling prophecy where IPO's always succeeded, prices always went up, creating gigantic bubbles.
Fast forward a few years. Besides bitcoin millionairs, we now have ethereum and a few other altcoin millionaires. Instead of IPO's, we now have ICO's. Instead of GLBSE, we have ethereum as the enabling platform. Instead of tradeable funds, we will soon have things like iconomi. Instead of bubbles created by funds investing in each other, we will have blockchains that are denominated in each other. And instead of thinking security regulation can be avoided by denominating an investment in bitcoin, we have people thinking regulation can be circumvented by calling something a token.
Am I the only one having a terrible deja vue?
submitted by Vertigo722 to ethtrader [link] [comments]

TOP 5 of BTCs lost/stolen/hacked/...

is this about right? whats the 5th largest sum stolen/lost? thx!
submitted by SYD4uo to Bitcoin [link] [comments]

Legality of cryptocurrencies

Regulations or positions of some countries about cryptoworld Because governments can sometimes be a bit touchy about attempts to create alternatives to the legal tender they enjoy a monopoly on printing, a wise investor might wonder about the legal status of cryptocurrencies. Indeed, the disruptive potential of these technologies has made governments around the world nervous, as they have struggled to devise appropriate regulations for the cryptocurrency realm without stifling innovation. Most potential investors have nothing to worry about from a legal standpoint, but it pays to do one’s homework.
Regulations or positions of some countries about cryptoworld Some countries have banned or ruled unconstitutional the use of cryptocurrencies within their borders, while others have embraced them or even announced plans to issue their own. Of course, due to the inherently decentralized nature of cryptocurrencies, enforcement has proven difficult. Taxes levied on profits made trading cryptocurrencies vary based on their legal classification. Check the laws in your country, and make sure you abide by them when investing. Questions of legality in major markets have caused temporary dips in cryptocurrency prices over the years, but they have always recovered. Keep reading for a brief history of legal rulings and government announcements related to bitcoin that have helped shape the current ecosystem.
February 2012
Payments services firms Paxum and Tradehill temporarily cease bitcoin exchange activities due to legal concerns raised by Canadian regulators.
28 March 2013
Cypriot investors drive up bitcoin prices seeking a refuge for savings when a government bailout program threatens to tap bank deposits.
14 May 2013
The United States Department of Homeland Security seizes almost $3 million from a subsidiary of the Mt. Gox exchange, claiming that the business is illegally engaged in money transmission without a license.
30 August 2013
Tradehill stops exchanging bitcoin, again due to regulatory uncertainty, indicating a growing need for government clarification on the legal status of cryptocurrency.
October 2013
The U.S. Federal Bureau of Investigation arrests operator of Silk Road dark web marketplace Ross Ulbricht, alias “Dread Pirate Roberts,” charges him with computer hacking, money laundering, drug trafficking and attempted murder, shuts down the site and seizes over 170,000 bitcoins. In the wake of the shutdown, numerous other illicit marketplaces emerge, but are prone to exit scams in which operators abscond with bitcoins held in escrow.
18 November 2013
U.S. Senate holds hearing titled “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies.” Members express reservations about the potential illicit applications of cryptocurrencies so vividly illustrated by Silk Road, frustration at the difficulty of regulating something so difficult to understand, but ultimately hope that government will be able to create a system in which decent people have a “chance to try and play by the rules.”
22 November 2013
China’s central bank issues an equivocal statement on bitcoin that nonetheless greenlights Chinese participation in cryptocurrency exchange and investment, prompting huge price gains over subsequent weeks.
05 December 2013
Backpedaling somewhat in response to the widespread use of bitcoin to circumvent limits on capital outflows, China bans banks and other financial institutions from dealing with or offering services relating to bitcoin, ruling that it is not a currency.
25 March 2014
The U.S. Internal Revenue Service issues its first guidelines for bitcoin, ruling that it is to be taxed as property, not treated as currency.
10 April 2014
Under government pressure, Chinese banks begin to shut down accounts belonging to bitcoin exchanges. Prices drop 10%, but many exchanges exploit loopholes and offshore parts of their businesses to continue operating.
July 2014
The state of New York announces plans to develop licensing requirements for businesses dealing in bitcoin or related services, which proves extremely unpopular with cryptocurrency advocates.
06 November 2014
Trendon Shavers, alias “pirateat40,” arrested for defrauding bitcoin investors in Ponzi scheme in 2012.
19 December 2014
Bitcoin entrepreneur and proponent Charlie Shrem sentenced to two years in prison for illegal money transmission charges related to the Silk Road marketplace.
25 January 2015
Coinbase navigates regulatory frameworks to win approval to operate a fully-fledged bitcoin exchange in 25 U.S. states and sets sights on further expansion.
25 March 2015
Hong Kong officials warn against potential fraud on exchanges, but indicate they will take a light hand regulating cryptocurrencies, classifying them not as legal tender but as “virtual commodities.”
29 May 2015
Ross Ulbricht receives sentence: life in prison without parole. Judge Katherine Forrest explicitly seeks to make an example of him and thereby discourage others from using cryptocurrency and the relative anonymity of the Internet to flout the law.
01 August 2015
Mark Karpeles, former Mt. Gox CEO, arrested in Japan and charged with falsification of records relating to the solvency of the exchange during its collapse.
10 August 2015
Deadline hits for compliance with New York regulators’ “BitLicense” rules, leading many exchanges to stop serving customers in the State.
22 October 2015
Crypto advocates hail a European court ruling that VAT does not apply to bitcoin and other cryptocurrency transactions, thereby classifying them as currency, not property.
10 November 2016
The state of North Carolina creates legislation to address bitcoin and money transmission, which regards businesses dealing in virtual currencies as subject to the same set of rules and licensing requirements that govern transmission
10 March 2017
The U.S. Securities and Exchange Commission denies Cameron and Tyler Winklevoss authorization to create a bitcoin-based ETF, citing inadequate regulation of cryptocurrency exchanges.
28 March 2017
The SEC denies the Winklevoss brothers’ second request for authorization of a bitcoin ETF, again citing concerns about the lack of regulation and potential for fraud on the exchanges.
01 April 2017
Japan recognizes bitcoin and other cryptocurrencies as legal tender and lays the groundwork for supportive regulations intended to permit legitimate investment while discouraging money laundering and terrorist financing.
04 September 2017
China prohibits fundraising via initial coin offerings, which it considers illegal.
07 September 2017
The European Central Bank rules out the possibility of Estonia launching its own national cryptocurrency, reaffirms the privileged status of the Euro as legal tender, and cites concerns that national cryptocurrencies would undermine financial regulations.
06 December 2017
Softening its initial stance, Russian regulators indicate that new rules may allow the purchase of cryptocurrencies, but forbid or heavily restrict mining activities.
07 December 2017
Regulators in South Korea ban trading in bitcoin futures as well as initial coin offerings(ICO), but will permit cryptocurrency exchanges to continue operations.
submitted by Which_Blockchain to u/Which_Blockchain [link] [comments]

Buttcoin Law Shit for July - pirateat40, Charlie Shrem and Ross Ulbrich case updates

Who say's we can't do some real reporting around here? Here are your Bitcoin Scammers Opressed Members law updates for July 2014
(this is posted with permission from Woozle Wuzzle, an honest to god lawyer at SomethingIsAwful.com)
Case 1: Pirate aka Trendon Shavers aka Ponzi McWifebeater
In our last episode, Pirate was gutted of all assets and awaiting trial without an attorney. He's since lawyered up! Holy shit! That lawyer has filed a bunch of motions to undo the mess caused by the case going undefended for a year. The attorney appears to be normal, unfortunately. The motions appear well-drafted, researched, and expensive. There's a motion to dismiss the case for lack of jurisdiction and to reverse the asset freeze.
The attorney is based in Oregon. He appears to be a typical SEC defense attorney. There's nothing bitcoiner or libertarian that I can see on him. It's public record to find him, but there's nothing to it. He's just a straight up SEC defense attorney without any public bitcoin advocacy.
Among the attorney's arguments is that bitcoins aren't money. It's hypertechnical about SEC jurisdiction and not very quotable. The SEC responded to the motions with dense 60-page answers, which the attorney responded to at length, and the SEC responded to at length, etc etc. This work cost thousands of dollars, and who knows where the money came from. An initial hearing is set for July 14 for the judge to try and sort out the motions. It's unlikely things will be resolved then.
BONUS NON-COMEDY!
I have an actual audio recording of a pirate hearing! In August of 2013, there was an initial hearing on his stupid 5-line defense to his case. Because of sequestration, the court couldn't afford a court reporter and recorded the hearing. The mp3 recording of that hearing was posted on the court's website and is public record.
It's an hour long, and I've listened to the whole damn thing: It's not funny. It's a regular pro se defendant losing because he had no attorney, but he doesn't make any crazy statements or arguments. It's kinda funny to hear people say "Satoshi Nakamoto" out loud in court. The funniest part was at some point Pirate said Mt Gox, but he pronounced it "M.T. Goax", like Em Tee then Goat with an x. But aside from that it's a snoozefest. I guess I could email the mp3 to any buttcoin people that want it, PM me, but I doubt anything interesting can be gleaned from it. It's boring
Case #2: Charlie "Shrem" Shrem - the BitInstant guy funded by the Winklevi
There's not much cooking in his case. He's under house arrest as condition of his bond, which sucks more than you'd think. Recently he put in an application for leave to visit family, and he obtained a court order that allows him to visit specific family in New Jersey, with prior approval of his court services officer on a day-by-day basis. He's awaiting trial, and there are transcripts of his hearings that are waiting out timers to become public record. So basically his life has come full circle, and a court has ordered him to stay in mom's basement.
Case #3 Ross Ulbricht: Dread Pirate Roberts of Silk Road!
This guy is still in the slammer awaiting trial. Trial will take place around November of this year. He has a lawyer filing motions like crazy, and again it appears to be a normal, expensive attorney. Nothing new has been posted in months, aside from standard motions and court docketing. There are hearing transcripts waiting for timers to expire to go public. Again, this defense is costing somebody thousands of dollars. He's probably costing his parent's their house.
The only interesting thing is that a linchpin of his legal defense is that bitcoins are not funds. He's trying to distance himself from the drug sales. Like he just had a pog trading website, and people just happened to trade pogs for drugs sometimes. His pog trades weren't drug sales... right? That's his defense. It's similar to Pirate's defense, and neither will work. It's just funny that the gov't is in the position of defending bitcoin's fungibility.
Ok so none of that was funny or interesting. But I paid like $2.10 to find it, so tough shit there you go.
submitted by borderpatrol to Buttcoin [link] [comments]

Trendon Shavers interviewed on Bitcoin Uncensored

I am a newbie to Bitcoin, but what a fascinating story. I listen to Bitcoin Uncensored on Sticher.
An interview with Trendon Shavers, aka 'Pirateat40' on early days, ponzis, and lessons learned from Bitcoin Uncensored - http://stitcher.com/s?eid=45963049&autoplay=1
submitted by idiocracy4real to Bitcoin [link] [comments]

Bitcoin gets some positive business press in Oklahoma. How did I do?

I got an email from a reporter early yesterday, a photographer showed up later in the day, and here is the result.
http://journalrecord.com/2013/08/01/local-traders-unmoved-by-sec-bitcoin-warning-finance/
Article went behind paywall, so here is text:
TULSA – To alleviate some of his unease about the economy, Tulsa resident Christopher King saves some of his personal wealth in non-dollar assets such as silver and Bitcoins.
The latter currency has been trading lately at a ratio of about 1 Bitcoin per $100. When the King family savings account reaches a certain level, dollar-wise, King said he has to put his wife’s concerns to rest over the latest developments in the Bitcoin market.
“My spouse is not as sold on it as I am,” he said. “It’s the same with any investment – you have to explain your reasons to the boss. And we’re focused on moving at the end of the year, so she’s more focused on dollar amounts right now.”
Their next chat will probably include details about the latest SEC action: The Securities and Exchange Commission last week issued an alert warning investors about the dangers of potential investment scams involving virtual currencies promoted through the Internet. The warning follows the SEC’s charges against Texan Trendon Shavers and his company on allegations he defrauded investors in a Ponzi scheme involving Bitcoin, a virtual currency traded on online exchanges for conventional currencies.
Officials at the SEC said Shavers, as the founder and operator of Bitcoin Savings and Trust, or BTCST, sold Bitcoin-denominated investments through Internet aliases. Shavers raised at least 700,000 Bitcoin in BTCST investments, or more than $4.5 million in 2011 and 2012 currency rate exchange values. Those Bitcoin resources now have a value of more than $60 million.
The SEC alleges that Shavers promised investors up to 7-percent weekly interest based on BTCST’s Bitcoin market arbitrage activity. Instead, Shavers was running a Ponzi scheme, using new investors to pay off earlier promises, officials said. Adding insult to injury, Shavers exchanged investors’ Bitcoin for U.S. dollars to pay his personal expenses.
“The short answer is that financial scams are everywhere and it pays to be cautious about any investment and ensure that you understand it and trust those operating it, before giving them your dollars or your Bitcoins,” said Tulsa Bitcoin trader Ryan Underwood.
“This question of where to place confidence is not a Bitcoin-specific issue but a problem with all investments that make future promises in exchange for taking investor money in the present,” Underwood said. Citing former stockbroker Bernie Madoff’s massive Ponzi scheme a few years ago, he said, “The SEC did not protect investors from Madoff despite numerous whistle-blowers coming forward in advance. Only their own diligence could have protected them.”
Underwood has as much confidence in Bitcoin as King; they’re both members of the Tulsa Bitcoin Buttonwood group, which meets at a local coffee shop each month to talk about the Bitcoin economy.
Bitcoin credit is harder to come by in a dollar-based society. King said he has paid for a sticker printing job in Bitcoin and identified a local pizza parlor that accepts Bitcoin online, but otherwise the currency in America is still more of a value savings unit than final token of merchant exchange. As an early adopter of the concept, King is biding his time and waiting for everyone to catch up.
“At first, I was a real booster and tried to get brick-and-mortar shops to accept it,” he said. “But there’s a huge technology gap. …When I start talking about virtual currency, I’ve seen too many eyes glaze over. I even struggle with my own elevator pitch.”
In simple terms, Bitcoin is a token of exchange with value determined by users, much like euros or dollars. But Bitcoin is not issued or overseen by any government agency; it does not exist in a physical form; and it is not based on a standard resource such as gold.
Bitcoin was established in 2009 by an unknown individual or group operating under the pseudonym of Satoshi Nakamoto. That entity has yet to be identified, although users believe Nakamoto left the project in 2010. The system Nakamoto devised doesn’t rely on a central manager; the worldwide Bitcoin ledger is maintained in a decentralized peer-to-peer network and verified with high-level, digital cryptography.
Further, since the Bitcoin system is believed to have an upper limit of 21 million, as long as another agency doesn’t step in, Bitcoin value theoretically will fluctuate freely according to market demand. All Bitcoin transactions are saved publicly and permanently online.
Bitcoin has the advantage of not passing through other institutions such as banks and credit card companies, so transactions cost less than dollar-based deals. And Bitcoin decentralization makes it more appealing to people such as Underwood. He described the typical Bitcoin investor as young, male and geeky. Bitcoin also attracts entrepreneurs, and people concerned about civil liberties, banking failures and government oversight.
“The only challenge is wrapping people’s minds around the idea of a currency that is basically designed for and working through the Internet,” Underwood said. “Aside from that, it works exactly the same as cash.” King said he’s dabbled in precious metal investments, but prefers digitally handling his Bitcoin resources because it’s easier to cash out in dollars. He has saved about half a year’s earnings from a part-time job in Bitcoin and the same in silver.
“I feel much more insecure about my savings in dollars than in Bitcoin,” he said. “Every week, you hear about something crazy going on in the macroeconomic news. There’s a whole bunch of us waiting for the dollar to drop out.”
submitted by runderwo to Bitcoin [link] [comments]

Coinbase and IRS: What can you do?

What is this post about
I have been a long-time Coinbase user, since when it was simply an email address. I don't use them anymore. I would like to share some information to help folks who are stressed. Hopefully some of this will bring the event into context, rather than just a general don't tread on me tax man perspective.
Why was Coinbase a target?
Coinbase has the most licenses of any Bitcoin company to my knowledge. While the perceived drop in user base and exchange volume appears to cause lower valuation the actual value for an acquisition is probably this legal status. It's difficult, time consuming and expensive to get each license. Every state is different. This means their end game might be just this, and even an IRS audit speaks more to their collaboration with the government. However, individual users are now subject to blanket reviews of their participation. Basically anything in the United States has the potential to face similar requests.
Is the IRS anti-bitcoin?
Let's look at just a couple cases that I think actually speak to their positive impacts:
Now the fact that the IRS literally went after their own, bringing the agents involved in Silkroad to court and eventual sentencing does show autonomy. AKA they'll go after anyone. I'd actually reckon the IRS has helped improve Bitcoin in some ways, but maybe that's because they are number oriented not always politically driven.
Who is the IRS seeking?
So you're using Coinbase and you're transferring to bank accounts. Here's issue #1, you can tell on the bank side where wires are coming from. They can't see the full scope on the Coinbase side. Simply put if you're already interacting with U.S. banks I'm not sure you can expect much privacy. The IRS is likely seeking individuals who moved more than 25-50k (guess?) and either didn't file taxes or their previous taxes were less than expected.
I used Coinbase for something Illegal
Well, here's your problem. If you were involved in some activity with ill gotten gains, then it would be a good time to worry. Woops! You could either seek a lawyer and/or take precautions. I doubt small gambling or exchange transfer uses would be an issue, but on a large scale it could be a case for a second look. I'm going to simplify this not as advice but general rule, don't expect any privacy on centralized platforms, specifically in the U.S. where you've supplied your information. (consult a lawyer, I'm not condoning illegal activity blah blah)
I used Coinbase and my taxes don't reflect Bitcoin balances
Ultimately the IRS is there to make sure taxes are collected. If there isn't purposeful negligence that is provable you can file back taxes. If you owe less than $10k in taxes, that say slipped through (and they understand) then you can go through their fresh start program: https://www.irs.gov/uac/newsroom/irs-fresh-start-program-helps-taxpayers-who-owe-the-irs/
In general this is a civil matter, and the IRS will do what's called a tax lien, or more than just a request but a motion to begin collection. You can consult any tax specialist if you're over the $10k limit, and figure out how to handle back taxes. What I recommend, not as a lawyer, is to evaluate what you might owe, be proactive and start the process of reconciling. Remember, IRS has been key to bringing down many a "bad guy", and if you're not in that category than you can simply square the issue. You are allowed a civil trial if you want to dispute. Here is a very long and detailed PDF on what their collection process looks like: https://www.irs.gov/pub/irs-pdf/p594.pdf
Is this big news?
Yes. The government has consistently failed to define Bitcoin, and how to file taxes accurately. I believe there is an accurate way to file it, but there isn't a standardized release that classifies Bitcoin, and helps to file these reports. Ultimately as a business, and individual taxes are important. We may not like them, we may disagree with how they're used, but if you're dealing with banks, and bank like providers like Coinbase expect it to continue. The Government needs to work with the community more closely, and instead of issuing sweeping requests, also address the correct way they want to see taxes. After the sheep market catch, where Coinbase and Simple (Bancorp) collaborated to catch millions in "fraudulent gains" the IRS and Government likely saw this as a potential hotbed for more issues. The IRS can be a force for good (see the section with what they have assisted with), but they are an equal opportunity investigator.
How do the big boys avoid taxes?
Mostly offshore arrangement. Many large corporations utilize what's called a double-irish-dutch-sandwhich or double irish agreement(http://www.investopedia.com/terms/d/double-irish-with-a-dutch-sandwich.asp?lgl=no-infinite) - You can see a list on Wikipedia (https://en.wikipedia.org/wiki/Double_Irish_arrangement), while this loophole is being closed in 2020, there will be another. Companies like Facebook, Google, Apple and more use business offices in Ireland to offshore their tax jurisdiction to small Islands and avoid tax on certain profits. Other individuals choose to incorporate offshore or in favorable jurisdictions like Seychelles or Singapore. Even places like Puerto Rico have lax capital gains taxes so as a U.S. citizen you can avoid some taxes. So yes, many "legit" businesses avoid tax by utilizing outside jurisdiction. In Bitcoin this primarily means innovation and business is being pushed out due to lack of clarity, harsh laws, and tax complications. I don't think the United States can be the hot bed for Bitcoin Venture Capital gains as has been projected it to be, but maybe mainstream adoption users don't care about the draw backs. Paypal's of Bitcoin basically. Possibly why so many decentralized projects (even Bitcoin) are more attractive.
Closing
I hope this helped, if you're worried about your situation. Things can be resolved and habits can be adjusted, but being on the right side of the taxman is probably your best choice.
Cheers.
submitted by shouldifreakout to Bitcoin [link] [comments]

I am the BearWhale: UASF Now!

Signed version of this message: https://pastebin.com/Lp5Djs5R
Hello. I am the BearWhale. After a series of bad experiences with the banking system, I invested most of my life savings into bitcoin when the price was fairly low, around $8. For years I was a HODLer. I was holding when Trendon Shavers ripped everyone off. I was holding when the price was over a thousand, and I held after MtGox imploded. I believe strongly in Bitcoin’s decentralized promise of displacing immoral national currencies.
The price kept drifting downwards until finally at a little over $300 I had enough. I sold off everything, based on an accumulation of information I gathered mostly from social media such as bitcointalk.org and reddit:
At this point I should state that I am a highly technical person. I understand all of the math behind the bitcoin whitepaper and the software that powers it. Although, I am not a security expert nor am I a cypherpunk - only a little experience in the type of adversarial thinking necessary to be a competent steward of the technology. I don’t regret selling, as I made an enormous profit. The decision was a rational one based on available information. However, in 2017 I went all-in on bitcoin again and here’s why:
None of the supposed facts which motivated my decision to sell were correct. It was all a carefully crafted and funded disinformation campaign launched by Roger Ver and his cronies, perhaps Jihan Wu, to discourage improvements to the bitcoin protocol to achieve financial gain at the expense of the community.
Once I recognized the moves to discredit the core developers for what it was, a covertly operated smear campaign fought on social media, funded by enormous enrichment from bitcoin, carried out with sock puppets and appeals to emotion, I looked at bitcoin and the greater community again with a more critical eye and I came to the following conclusions:
Although I am of course an adult fully responsible for my decisions, I want to make it clear that Roger Ver’s agenda was successful at convincing me that bitcoin had a “governance crisis” and was at risk of being overtaken by altcoins.
My reason for this open letter s simple: I want the community to know that I fully support the core developers. I am strongly in favor of UASF as a mechanism for liminating the centralizing effect of miner control illusions. I support SegWit as a sensible technology for moving Bitcoin forward. I reject a block-size increase hard fork at the present time. I reject a phony “compromise.” And I especially resent and reject a consortium of suits coming to an “agreement” on what source-code base will be named “bitcoin” without that code base being thoroughly vetted over a suitable long time-frame by industry professionals. Those industry professionals include Gregory Maxwell and most of the people who participate regularly on the bitcoin developers mailing list and contribute pull requests to the bitcoin-core repository.
tl;dr; I am the BearWhale: I sold Bitcoin for the wrong reasons, and now I am all-in and long bitcoin again.
submitted by the_bearwhale to test [link] [comments]

Everyone listen! I am from the future and have a story!

I am a time traveler from 2015 and have a warning for all of you! There was just a huge bust and all the people who were being paid to promote bitcoin are in jail! After the SEC executed Trendon Shavers with a firing squad for securities fraud, they moved onto investigating redditers. Due to budget cuts, the courts use firing squads now instead of jail for most crimes. It makes great primetime TV and is currently the most popular show. It has reduced violent crime so much that they're now finally arrested white collar criminals.
Due to the time travel I have lost some of my memories but I believe they were charged with SEC violations 240.10b-5 and 78j(b).
I must go now and find my ship. Some guy named Lazarus borrowed it to go buy medical marijuana from California where Ross Ulbricht is now governor.
submitted by MarthaMcFlyer to Bitcoin [link] [comments]

WARNING: SEC involvement over pirate40 could mean SEC regulatory encroachment on bitcoin companies like ASICMiner.

The Genesis Block has reported that Trendon Shavers (aka pirate40) has been charged with fraud by the SEC. While this may seem like a good thing, if you read closer, the SEC has filed two charges:
  1. Fraud.
  2. "unlawfully selling unregistered securities"
While we can understand the first, the second is a dangerous encroachment on the bitcoin community. If the SEC can prove regulatory authority in court, companies that trade for bitcoins and pay dividends in bitcoin (e.g. ASICMiner) may face a nasty future.
submitted by BobbyLarken to Bitcoin [link] [comments]

currently brainstorming a wiki about funny bitcoiner names

Here's what I've got so far:
Name occupation status
Hass Mc Cook bitcoin speaker, bowties ?
Tuur de Meister tweets about bitcoin no one cares
Gonzague Gay Bouchery had coffee with marky at work updating resume
Charlie Lee copy pasted bitcoin to make litecoin made a commit in january
Andreas Antonopoulos bitcoin expert and consultant charging a grand to create a private key
Roger Ver bitcoin serial entrepreneur solid statelessness expected
Charlie Shrem running a low risk fish based prison bank freedom: disrupted
Trendon Shavers successful bitcoin entrepreneur got decentralized to jail
Mark Karpeles [redacted] [redacted]
CARL MARK FUCKING FORCE IV Stole from MtGOX, Silk Road and Various Assorted Fuckeries deleting c:
FAQ:
  1. Why are those names funny ?
Because they usually sound completely made up or have a funny alliteration going on.
submitted by dildoge_investor to Buttcoin [link] [comments]

SEC acusa homem de criar esquema de pirâmide nos EUA usando Bitcoin

NOVA YORK - O órgão regulador do mercado de capitais dos Estados Unidos, a Securities and Exchange Commission (SEC), acusou um homem do Estado americano do Texas de manter um esquema de pirâmide (ou esquema Ponzi) baseado na moeda virtual Bitcoin – que se tornou conhecida do grande público nos últimos meses como uma alternativa para quem quer driblar a instabilidade da economia mundial.
Trendon Shavers, que usava o apelido “pirateat40”, administrava um site chamado “Bitcoins Savings and Trust” (BTCST), de acordo com a denúncia da SEC. O site atraiu muita atenção e investigação da comunidade de usuários do Bitcoin. Shavers fechou o site em agosto do ano passado.
De acordo com a SEC, Shavers levantou pelo menos 700 mil Bitcoins em investimentos na BTCST, o equivalente a US$ 4,5 milhões, baseado no preço médio do Bitcoin entre 2011 e 2012, período em que o investimento foi comercializado. Hoje, o valor passaria de US$ 60 milhões.
A SEC alega que Shavers prometia aos investidores o pagamento de até 7% de juros por semana baseado na arbitragem dos negócios do BTCST, que supostamente incluía a venda para indivíduos que queriam comprar Bitcoins “fora do radar”, de forma rápida e em grandes quantidades.
Na realidade, o fundo era um esquema de pirâmide no qual Shavers usava Bitcoin de novos investidores para honrar os juros prometidos a outros investidores e pagar quem sacou dinheiro do fundo. Shavers também fazia operações de um dia com os Bitcoins em sua conta em um site de “câmbio” da moeda e usava recursos dos clientes para pagar despesas pessoais.
“Fraudadores não estão fora do alcance da SEC só porque eles usam Bitcoin, ou outras moedas virtuais para enganar investidores e violar leis federais”, disse Andrew M. Calamari, diretor do escritório regional de Nova York da SEC. O órgão emitiu um alerta para que investidores fiquem atentos ao aumento de fraudes com moedas virtuais.
Fonte Valor Economico
submitted by allex2501 to BrasilBitcoin [link] [comments]

SEC acusa homem no Texas de pirâmide financeira com Bitcoin

WASHINGTON, 23 Jul (Reuters) - Reguladores de valores mobiliários dos Estados Unidos acusaram um homem do Texas nesta terça-feira de administrar um esquema de pirâmide financeira ao oferecer investimentos com a moeda virtual Bitcoin na Internet, embolsando parte dos recursos para despesas pessoais.
A Securities and Exchange Commission (SEC), alegou que Trendon Shavers, fundador do Bitcoin Savings and Trust, prometia falsamente retornos de até 7 por cento por semana, mas utilizava a maior parte do dinheiro aplicado para cobrir as retiradas de outros investidores.
Separadamente, a SEC também alertou investidores dos perigos de potenciais esquemas fraudulentos envolvendo moedas virtuais como a Bitcoin.
Fonte G1 Globo
submitted by allex2501 to BrasilBitcoin [link] [comments]

SEC acusa homem no Texas de pirâmide financeira com Bitcoin

A Securities and Exchange Commission (SEC), alegou que Trendon Shavers, fundador do Bitcoin Savings and Trust, prometia falsamente retornos de até 7% por semana
Washington - Reguladores de valores mobiliários dos Estados Unidos acusaram um homem do Texas nesta terça-feira de administrar um esquema de pirâmide financeira ao oferecer investimentos com a moeda virtual Bitcoin na Internet, embolsando parte dos recursos para despesas pessoais.
A Securities and Exchange Commission (SEC), alegou que Trendon Shavers, fundador do Bitcoin Savings and Trust, prometia falsamente retornos de até 7 por cento por semana, mas utilizava a maior parte do dinheiro aplicado para cobrir as retiradas de outros investidores.
Separadamente, a SEC também alertou investidores dos perigos de potenciais esquemas fraudulentos envolvendo moedas virtuais como a Bitcoin.
Fonte Exame
submitted by allex2501 to BrasilBitcoin [link] [comments]

Bending Reality TV - YouTube Un tribunal de EE.UU. acepta por primera vez al bitcóin como una moneda real Bitcoin - the Gold of Internet ZebPay – Bitcoin Mobile Wallet Decentral Talk Live Ep #78: Jason Seibert of FJ Seibert, LLC

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23090 / September 22, 2014 Securities and Exchange Commission v. Trendon T. Shavers and Bitcoin Savings and Trust, Civil Action No. Civil Action No. 4:13-CV-416 Final Judgment Entered Against Trendon T. Shavers, A/K/A/ "Pirateat40" - Operator of Bitcoin Ponzi Scheme Ordered to Pay More Than $40 Million in Disgorgement and Penalties Trendon T. Shavers, or Pirateat40, is Bitcoin's Bernie Madoff. When Bitcoin Savings & Trust started, Shavers had a formula for investing his client's bitcoins, Seibert said. Trendon Shavers (known as Pirateat40 or simply Pirate) was the operator of the largest scam in bitcoin history: he operated a ponzi scheme which initially promised a guaranteed a daily profit of 1%, and then disappeared with an unknown amount of bitcoins in August 2012.Thoughts were that the amount was about 500,000 bitcoins, valued around US $5 million at the time. Securities and Exchange Commission v. Trendon T. Shavers and Bitcoin Saving & Trust, United States District Court, Eastern District of Texas Sherman Division, Case No. 4:13-CV-416, District Judge Mazzant (2013) United States of America v. E-gold, Ltd, Unwitting investors were promised amazing returns like 7% per week, and ultimately more than 265,000 Bitcoins were stolen via fraud. The whole Savings and Trust scheme finally collapsed in 2012, and organizer Trendon Shavers was caught up in court battles for years. This eventually led to his imprisonment and a $40 million fine. Too bad the

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Bending Reality TV - YouTube

Interview with Jason Seibert about the SEC's allegations against his client Trendon Shavers, AML compliance programs, the OFAC list, and the future of bitcoin's status as money under federal ... Bitcoins continue to make waves globally after the first bitcoin securities fraud case was reported from the US earlier this month. Trendon Shavers, a Texas resident, was accused of engineering a ... Hi tired of persuading your kids to eat healthy? This video is of muthiya, a gujrati dish, full of immunity and strength. Kids won't be tired of eating but u will be exhausted of making Pregnant ... itcoins – the currency of the Internet – continue to make waves globally after the first bitcoin securities fraud case was reported from the US earlier this month. Trendon Shavers, a Texas ... This video is unavailable. Watch Queue Queue. Watch Queue Queue

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