Reading: Industry Report: Bitcoin Fraud Never Works


Industry Report: Bitcoin Fraud Never Works

Nick Marinoff | Jul 24, 2016 | 09:00

Bitcoin Industry Report Bitcoin

Industry Report: Bitcoin Fraud Never Works

Nick Marinoff | Jul 24, 2016 | 09:00

Coinbase adds Ethereum, a man learns the consequences of bitcoin fraud, and Surbitcoin unfreezes following a temporary scare. Want to catch up on your latest digital currency news? Take a look at the stories below.

Also read: Industry Report: Charlie Shrem Is a Free Man


Once a primarily Bitcoin-based exchange, Coinbase shocked the world when it announced that leading bitcoin competitor Ethereum would be added to its list of currencies, and the exchange will now offer Ether services to its customers. Clients in well over 30 counties will now have the ability to buy, sell, and store ether in their Coinbase accounts like they would bitcoin.

coinbase Bitcoin

Company product manager Ankur Nandwani explains:

“Ethereum is still an early and experimental phase, and as it matures, will likely evolve to serve a different purpose than bitcoin… In the meantime, Ethereum is pushing the digital currency ecosystem forward, and we are excited to support it as part of our mission to create an open financial system for the world.”


Texas resident Trendon Shavers is now serving an 18-month jail sentence for a Ponzi-style scheme based around Bitcoin. The “first person to face federal securities fraud charges involving bitcoins,” Shavers promised unusually high returns to investors, while in turn using funds to pay back early investors, and amass bitcoins for himself. Shavers also purchased a BMW and funded a Vegas vacation.

Lawyers estimate that over $1 million in funds were lost. Shavers, who says he “royally messed up,” has been ordered to pay back the stolen amounts in full.

“I don’t think this is something I’m ever going to get over, but I’m going to try to make things right,” he said in court.


Venezuela-based bitcoin exchange Surbitcoin has resumed regular operations, following a temporary freeze of one of its fiat accounts. The company issued a statement explaining that its account activity had been forcibly halted after a customer complained about a delayed withdrawal. The company says:

“Thanks to the help of Banesco’s Security Department, we found the shady actor who caused the fiat gateway outage. We will pursue legal action against this individual, and we thank our customers for their patience.”


Latin America has experienced heavy rates of inflation, which has allowed Surbitcoin to become Venezuela’s biggest and most popular exchange.

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