Bitcoin Ponzi Schemer Hints at Dealings With Mt Gox CEO

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Convicted Ponzi scheme operator Trendon Shavers is now insinuating the major unidentified debtor cited in his defense against the SEC may have been Mark Karpeles, CEO of the now-defunct bitcoin exchange Mt Gox.

The claims, while veiled, stem from a new interview for the popular industry podcast Bitcoin Uncensored, in which Shavers faced questions about the history of Bitcoin Savings and Trust (BTCST), an investment operation later deemed a Ponzi scheme in multiple court litigations. Investors lost as much as 700,000 BTC through the scheme, which collapsed in late 2012.

In a court deposition, Shavers claimed that BTCST’s largest debtor, who was unidentified in public records, defaulted on a 202,000 BTC loan, thereby triggering the capital shortfall that accelerated its demise. However, he would go on to admit that “he has no proof at all of the lending activities he supposedly undertook for BTCST”, including the major borrower.

Where does Karpeles factor into this? During the interview, Shavers references the debtor as someone connected to “a very, very big exchange” but stopped short of identifying the figure.

When pressed by co-hosts Chris DeRose and Joshua Unseth, he said the

Read more ... source: TheBitcoinNews

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