Man Who Issued Securities For Bitcoins Settles With SEC

MrBingoBoingo writes with news that the U.S. Securities and Exchange Commission has settled federal civil charges with Erik Voorhees, a man who sold shares of two businesses in exchange for Bitcoins without registering them. Voorhees must make restitution for the $15,000 in profit he made, plus interest, and a $35,000 fine. Here's the SEC's filing (PDF). "The agreement reflects an expanded effort by U.S. regulators to cast a wider net over the burgeoning bitcoin economy. It comes as investor enthusiasm grows for direct offerings of shares by new bitcoin-focused ventures over bitcoin's global computer network. Maidsafe, a system for sharing computer memory, raised $7 million last month in such a deal."

Comments

The what strikes where now?

[Anonymous Coward]

The dude broke the law. A very real, very good (shockingly) law.

Doesn't matter if he offered securities for bitcoin, bushels of corn, or steamy massages. The currency isn't the problem with what he did.

Routine unregistered securities case

[Animats]

That's a routine sale of unregistered securities case. If he'd sold them for dollars or yen, the SEC would have done the same thing. Bitcoin is irrelevant here.

Re:Routine unregistered securities case

[DontLickJesus]

Exactly. Title is misleading. Crime was for unregistered securities.

Re:SEC

[jbeaupre]

Because the SEC's job isn't to stop stupid. Its job is to stop fraud. Distinguishing the two can be tricky. Selling unregistered securities is one area that has been designated at fraudulent. Selling over overpriced or excessively risky investments has not been designated fraud as long as the buyer isn't knowingly fed false information.