- Token Economy
Bitcoin Savings & Trust (abbreviated as BST) was a ponzi scheme operated by Trendon Shavers (then known as Pirate). It was launched in November 2011 as First Pirate Savings & Trust. Pirate claimed to have been selling bitcoins to some local tight-lipped buyers, and that he started BST to provide more volume to these buyers. By selling invested bitcoins at a high rate and rebuying them at the market price, Pirate was supposedly able to offer a very high-yield interest rate of 7% per week. This rate attracted many investors, and Pirate claimed that over 500,000 bitcoins had been deposited. The scheme shut down in August 2012, and a year later the government indicted organizer Tendon Shavers. The government accused him of raising more than 700,000 bitcoins from gullible customers. In 2014, a judge ordered Shavers to repay victims more than $40 million. The judge found the scheme had cost victims 265,678 bitcoins.