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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WASHINGTON (AP) — The co-owner of two bitcoin-related Websites is paying almost $51,000 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 said 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 acknowledged nor denied wrongdoing but agreed to refrain from future violations of securities laws.

Under the settlement, Voorhees is repaying the $15,843.98 in profits and paying a $35,000 penalty.

In a message to "fellow Bitcoiners" posted on the website Reddit, Voorhees said "With this matter resolved, I look forward to helping to build the bitcoin industry and the future of finance."