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A district judge has ordered a bitcoin Ponzi operator to be arrested and imprisoned after he ignored multiple court orders and failed to pay the U.S. Securities and Exchange Commission (SEC) $40 million. He pleaded guilty to securities fraud in 2015.<\/strong>\n<\/p>\n \n Trendon Shavers, a resident of McKinney, Texas, owes the U.S. Securities and Exchange Commission (SEC) more than $40 million after pleading guilty in September 2015 to one count of securities fraud. However, he has repeatedly disregarded court orders, Judge Mazzant said, adding:\n<\/p>\n Shavers\u2019s flagrant disregard for the court\u2019s orders on multiple occasions leads to only one conclusion: Shavers will only comply with the court\u2019s orders if he is incarcerated.<\/p>\n<\/blockquote>\n \n The SEC obtained a ruling against him in September 2014. The regulator said at the time:\n<\/p>\n The court\u2019s judgment requires Shavers and BTCST to pay more than $40 million in disgorgement and prejudgment interest, and orders each defendant to pay a civil penalty of $150,000.<\/p>\n<\/blockquote>\n \nJudge Mazzant\u2019s contempt order focuses on the SEC\u2019s effort to enforce the $40.4 million civil judgment, the publication conveyed.<\/p>\n The SEC asked Shavers for certain financial documents to determine his ability to pay the disgorgement. Shavers testified that he had made no payments and that he was earning about $4,000 per month. The court ordered him to produce the documents and make six $400 payments but the documents and two of the payments never materialized, which led to more SEC motions and court orders.<\/p>\n The district judge also noted that Shavers failed to appear for a hearing. He reiterated that other than imprisonment, he saw \u201cno other way to coerce Shavers to comply\u201d with court orders.<\/p>\nBitcoin Ponzi Operator Faces Imprisonment After Failing to Pay SEC<\/h2>\n
\nJudge Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas said earlier this week that a bitcoin Ponzi operator will be arrested and imprisoned for civil contempt unless he immediately provides overdue documents and payments, Bloomberg reported.<\/p>\n\n
\nThe SEC charged Shavers and his company, Bitcoin Savings and Trust (BTCST), in July 2013 for running a bitcoin Ponzi scheme. According to the authorities, he defrauded investors out of at least 764,000 BTC<\/a>.<\/p>\n\n