Home » News » Justice

Co-owner of bitcoin-linked sites settles SEC case

First Published      Last Updated Jun 03 2014 12:32 pm

WASHINGTON • The co-owner of two bitcoin-related Websites is paying $50,843 to settle federal civil charges that he sold shares in the businesses without registering them as securities offerings.

The Securities and Exchange Commission on Tuesday announced the settlement with Erik Voorhees in connection with soliciting investors to buy shares in the two sites, SatoshiDICE and FeedZeBirds. The SEC says investors paid for the shares they bought with bitcoin, the online currency that allows people to buy goods and services, and exchange money across borders without involving banks or other third parties.

Voorhees, a prominent bitcoin proponent who co-founded a separate bitcoin company, made $15,843.98 in profit from the unregistered offerings, according to the SEC.

He neither admitted nor denied wrongdoing but agreed to refrain from future violations of securities laws.