SEC alleges bitcoin investment was Ponzi scheme

Bitcoin Watch Shop

The Securities and Exchange Commission charged dual bitcoin mining companies and their owner on Tuesday with defrauding investors.

The SEC’s censure accuses Garza and his firms of using a Ponzi intrigue that used “mining” for bitcoin or other practical currencies as a front to take financier funds. “Mining” means requesting mechanism energy to try to solve formidable equations. The initial mechanism or collection of computers to solve an equation earns a bitcoin currency.

From Aug to Dec 2014, the SEC alleges in a censure Homero Joshua Garza sole $20 million value of shares in a digital mining agreement he called a Hashlet by his digital bitcoin mining companies GAW Miners and ZenMiner. But those companies did not possess adequate computing energy to solve a problems. Garza and his companies sole distant some-more computing energy than they owned, so some investors perceived deduction generated from sales to other investors.

“Garza and his companies cloaked their intrigue in technological sophistication and jargon, though a rascal was elementary during a core: they sole what they did not own, skewed what they were selling, and attacked one financier to compensate another,” pronounced Paul G. Levenson, executive of a SEC’s Boston Regional Office, in


Read more ... source:

Advertise on the Bitcoin News

Do you like The Bitcoin News ? Thank you for Support us !
BTC: 1FVCSiK2ErerjH1kBP4VLS5LqR3YzmVeXf
ETH: 0xa829E61Cc130b4f02fbfc9D7763361a550C7f824