Trendon Shavers, 33, pleads guilty to the charge of operating a bitcoin Ponzi scheme, which caused losses of over $4.5 million to 48 investors.

On Monday, September, 21 Mr. Shavers admitted having done a "wrong" thing and said he was "very sorry".

Operating Bitcoin Savings and Trust in 2011-2012, Shavers, also known as Pirate, promised interest rates of 3,641 percent a year (7 percent per week). He raised at least 764,000 bitcoins worth more than $4.5 million and misappropriated them to cover his daily expenses, including 1,000$ Las Vegas dinners and gambling.

According to the prosecutors, at the peak of its activity Bitcoin Savings and Trust accumulated 7 percent of all bitcoins in public circulation.

Sentencing is to take place on February, 3, 2016.

If the sentence is at or below 41 months, Mr. Shavers is not going to appeal it.





Maria Rudina