SEC Shuts Down Bitcoin Fraud Scheme Sold Using Twitter, Facebook

Fraud schemes follow hot markets and hot money, and Bitcoin is no exception. Bitcoin might not be the issue, despite frenzied market behavior Bitcoin is the center of the Mt. Gox collapse, the online exchange where 850,000 Bitcoins worth over $27 million “disappeared.” This news follows a recent Bitcoin executives’ suicide, which comes on the heels of news that the Securities and Exchange Commission took emergency action to shut down an alleged fraudulent Bitcoin pyramid scheme promoted on Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).  With this scheme the issue might not be Bitcoin, but investors understanding that guarantees of…