Bitcoin entrepreneur enters SEC settlement over unregistered share sales

According to a Reuters report, a popular advocate of the electronic currency Bitcoin has decided to settle the civil charges filed against him by the US Securities and Exchange Commission over claims that he offered unregistered shares for sale in public. SEC said on Tuesday that 29 year-old Erik Voorhees has agreed to pay around $51,000 by giving up his profit and interest in the stock sale of companies FeedZeBirds and SatoshiDICE, both of which he co-owned. His settlement with the regulator does not require him to admit nor deny any wrongdoing.

Voorhees is also the founder of Coinapult, a Bitcoin transfer service done via email or messaging service.

Like the rest of the owners and traders of the virtual currency, Bitcoin is transacted independent of central control, and is not supported by any government or central bank. The virtual currency has been touted by conservative investors as a speculative asset.

Head Andrew Ceresney of the SEC enforcement division said about the regulator's settlement with Voorhees, "All issuers selling securities to the public must comply with the registration provisions of the securities laws, including issuers who seek to raise funds using bitcoin."

According to the charges by the SEC, Voorhees aided in the raising of 2,600 bitcoins in May 2012 via a sale of 30,000 shares in FeedZeBirds. FeedZeBirds is a service that promises to pay Twitter users who forward sponsored text messages in bitcoins. Moreover, the SEC also said Voorhees also aided in the raising of 50,600 bitcoins through the sale of 13 million SatoshiDICE shares. SatoshiDICE is a gaming website that pays out casino winnings in bitcoins.

Voorhees' attorney, Brian Klein, did not immediately respond to Reuters' request for comment about the settlement.

The SEC said that since Voorhees' first unregistered offering, the value of the electronic currency has increased to $1,200 per bitcoin from a measly $5.

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Erik Voorhees, Erik Voorhees unregistered share sales civil lawsuit, US Securities and Exchange Commission, FeedZeBirds, FeedZeBirds sale, SatoshiDICE, SatoshiDICE sale, SatoshiDice.com SEC probe

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