Co-owner of bitcoin-linked sites settles SEC case

Published on NewsOK Modified: June 3, 2014 at 6:31 pm •  Published: June 3, 2014
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SatoshiDICE is a gambling site that takes bets and pays out winnings in bitcoins. The Satoshi name comes from Satoshi Nakamoto, the mysterious figure or group that created bitcoin in 2009. Voorhees and the other co-owners sold the site in July 2013, according to the SEC. FeedZeBirds pays Twitter users a fee in bitcoins in exchange for forwarding sponsored text messages.

Separately, the SEC issued an "investor alert" last month warning of the potential risks of investing in bitcoin and other virtual currencies. Investments involving bitcoin may have an increased risk of fraud, and the people behind fraudulent schemes may lure investors by touting bitcoin investment "opportunities" promising unrealistically high returns, the SEC said.

The agency said consumers should be wary of potential warning signs, such as guaranteed high returns, unsolicited offers and pressure to buy immediately.