Trendon Shavers earned a lenient sentence through good faith efforts to right the wrongs he did while improperly managing the Bitcoin Savings Trust, Bitcoin’s first federal securities case, according to his sentencing judge.
That’s news the Bitcoin Community, which has long viewed Shavers as a no more than a fraudster, likely won’t heed.
Bitcoin Savings Trust, initially called First Pirate Savings Trust, ultimately stripped investors of $4.5 million. Shavers faced 40 years in prison before a plea deal brought his maximum sentence to 41 months.
Shavers’ $4.5 million ponzi scheme netted him approximately $220,000 which he spent on groceries, rent and car payments, according to court documents. Much of his profit was lost due to trading losses.
“Applying a modern spin to an age-old fraud, Trendon Shavers used a bitcoin business to run a classic Ponzi scheme,” according to prosecutor, U.S. attorney Preet Bharara.
In reading his verdict, the judge noted that Shavers, while carrying out a “classic ponzi scheme,” had tried to make things right,.