Bitcoin News With SiliconANGLE

The appeal of Bitcoin as an investment has increased over the years, especially now that more merchants and retailers are accepting it.

But as with anything that attracts investors and big money, scammers will descend upon it like vultures, scrapping for a piece of the action. But now, one law firm is fighting back.

Silver Law Group, a nationally recognized securities law firm in South Florida with satellite offices in New York and Washington, DC, has filed cases against Bitcoin startup Cryptsy, a cryptocurrency trading platform operated by Paul Vernon, and Bitcoin Savings & Trust, a Bitcoin investment firm operated by Trendon Shavers, which recently shut down amid allegations it was nothing more than a Ponzi scheme.

Complaints against the exchanges include using deceptive and misleading tactics such as the promise of high profits based on seven percent weekly interest; not providing a safe and reliable platform to trade cryptocurrencies; and excessive fees and commissions, among others.

Skye Bonnow, one of Cryptsy’s scorned customers of Cryptsy who is now represented by Silver Law Group, recounts how 140 Bitcoins disappeared from his account earlier this year. Bonnow stated that he complied with all of Cryptsy’s Terms & Conditions but was still defrauded by the service. Some users also noticed that they were able to withdraw more than what they had in their Cryptsy account, which led to the realization that the service mixes people’s funds and is therefore extremely insecure.

“Contrary to the claims promoted on the Cryptsy website, the website platform was not a secure online cryptocurrency trading platform, but instead was rife with developmental bugs, security issues, lack of protection against fraud, and operated as a general slush co-mingled account for Defendants to later misappropriate funds for its own use,” the lawsuit stated.

Despite the controversy and lawsuit, Cryptsy continues to operate.

As for Bitcoin Savings & Trust, its operations ceased suddenly last year just as evidence of it being a ponzi scheme began to pile up. Its operator, Shavers who then went by the name pirateat40, insisted that it wasn’t a fraudulent scheme despite promising a seven percent weekly interest to investors. Silver Law Group is assisting those who have been scammed by Bitcoin Savings & Trust to get their investments back.

Silver also encourages anyone who thinks or feels they have been a victim of fraud or a theft of your assets to get in touch with them by contacting David C. Silver at dsilver@silverlaw.com to discuss your legal matters.

photo credit: btckeychain via photopin cc