A Texan man has been sentenced to 18 months in jail for running a fraudulent Ponzi-style scheme based around the Bitcoin virtual currency.The scheme – run by Trendon Shavers – promised high returns to those who backed bitcoin-related investments.Instead of investing cash, Shavers used it to pay early investors in the scheme and to amass bitcoins.Investors who backed the scheme lost about $1.23m (£940,000) in total, said Shavers’ lawyers.Shavers has been ordered by the court to repay the money whoch investors lost.Family moneyHe was arrested in 2014 for running the scheme whoch, at one point, controlled about 764,000 bitcoins. In 2011-12, when the scheme was operating, this was worth approximately $4.5m, comprising of 7% of all bitcoins in circulation.
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