Bitcoin Savings and Trust
An early Bitcoin Ponzi (2011–2012) run by Trendon Shavers ('pirateat40'), who promised up to 7% weekly returns and took in ~764,000 BTC. The SEC won a $40M+ judgment, and in 2016 Shavers was sentenced to 18 months — the first U.S. federal securities-fraud case involving Bitcoin.
Also known as: Bitcoin Savings and Trust, BTCST, Trendon Shavers, pirateat40
Summary
Bitcoin Savings and Trust (BTCST) was an online investment scheme operated from 2011 to 2012 by Texan Trendon Shavers under the handle "pirateat40." He solicited investors on Bitcoin forums and chat rooms, promising up to 7% returns per week from purported Bitcoin arbitrage trading. [1][2]
Reality and outcome
The SEC established that Shavers ran a Ponzi scheme — paying earlier investors with later investors' bitcoin and diverting funds for personal use (including a BMW and Las Vegas trips). At its peak BTCST held about 764,000 BTC (roughly 7% of all bitcoin then in circulation, ~$4.5M at the time). In 2014 a federal court ordered more than $40 million in disgorgement and penalties; in 2016 Shavers was sentenced to 18 months in prison — the first U.S. federal securities-fraud prosecution involving Bitcoin. [1][2][3]
Bracketed numbers refer to the numbered sources listed below.
Linked scams & cases
People & entities involved
Sources (3)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.