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Bitcoin Savings & Trust (abbreviated as BST) was a ponzi scheme operated by Trendon Shavers (then known as Pirate). It was launched in November 2011 as First Pirate Savings & Trust. Pirate claimed to have been selling bitcoins to some local tight-lipped buyers, and that he started BST to provide more volume to these buyers. By selling invested bitcoins at a high rate and rebuying them at the market price, Pirate was supposedly able to offer a very high-yield interest rate of 7% per week.
After accumulating an ever larger amount of bitcoin, transactions were becoming difficult and expensive. Pirate attempted to reduce the strain by lowering the interest rate, but this sparked unrest and mass withdrawals. It was later revealed that the missing money went towards “rent, car-related expenses, utilities, retail purchases, casinos, and meals.”