Feds level first bitcoin securities fraud criminal prosecution

A Texas man was arrested Thursday and charged with fostering a bitcoin-related Ponzi scheme, in what is the first securities fraud case involving the crypto currency ever lodged by US prosecutors.

Prosecutors said the defendant, Trendon Shavers, is accused [PDF] of promising investors “absurdly high interest” in exchange for turning over their bitcoin to him. Investors were falsely promised that their bitcoin was recoverable at any time, the authorities said.