The Securities & Exchange Commission has issued an alert for investors, regarding entities operating Ponzi schemes that utilize virtual currency*. At the same time, it took action, in United States District Court in Texas, against an alleged $4.5m fraudster, who offered Bitcoin investments, in a Ponzi scheme that collapsed. Note that the company was called Bitcoin Savings & Trust.
It is suggested that you review the complete text of the SEC alert, by visiting the hyperlink below.
*Ponzi Schemes using Virtual Currencies