Bitcoin is 'an electronic form of currency unbacked by any real asset', the supply of which is 'based on an algorithm which structures a decentralized peer-to-peer transaction system'. In short, a virtual currency of fluctuating value. Trendon Shavers, the founder and principal of Bitcoin Savings and Trust (BST; formerly First Pirate Savings & Trust, perhaps not a name to inspire confidence) offered a group of Texas investors the opportunity to purchase Bitcoin through investments in BST. A number of them lost money and the Securities and Exchange Commission became interested, alleging that Shavers had misrepresented the nature of the investments. Shavers challenged the jurisdiction of the SEC to regulate Bitcoin investments at all, arguing because Bitcoin is not money, an investment in Bitcoin is not an 'investment in money' and therefore not a 'security' under the 'investment contract' branch of the definition of that term (which is predicated on there being an investment of money in a common enterprise with the expectation of profits derived from the efforts of the promoter or a third party).