Trendon Shavers
Founder of Bitcoin Savings and Trust, who operated under the handle 'pirateat40' and ran what the DOJ called the first federal criminal securities-fraud case involving Bitcoin. He pleaded guilty in 2015 and was sentenced in 2016 to 18 months in prison.
Also known as: pirateat40, Pirate, Trendon T. Shavers
Bio
Trendon T. Shavers, who used the online name "pirateat40," founded and operated Bitcoin Savings and Trust (BTCST). From 2011 to 2012 he solicited investors on online forums, promising up to 7% weekly returns from purported bitcoin market arbitrage. In reality the SEC and DOJ said BTCST was a Ponzi scheme that paid earlier investors with newer investors' bitcoin while Shavers diverted funds for personal use. [1][2]
Legal outcome
The SEC's 2013 case was the first it brought over a Bitcoin-denominated Ponzi scheme; a 2014 judgment ordered Shavers and BTCST to pay more than $40 million. He pleaded guilty to securities fraud in 2015 and, in 2016, was sentenced to 18 months in prison — described by prosecutors as the first federal criminal securities-fraud case involving Bitcoin. [1][2]
Bracketed numbers refer to the numbered sources listed below.
Linked scams & cases
Sources (2)
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.