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Satoshidice

Satoshidice

SatoshiDice was a gambling website using the digital currency bitcoin. In 2012, SatoshiDice was the leading bitcoin gambling site in terms of amount wagered.

SatoshiDice was a gambling website using the digital currency bitcoin. In 2012, SatoshiDice was the leading bitcoin gambling site in terms of amount wagered. On 18 July 2013, Erik Voorhees announced that SatoshiDice had been sold for 126,315 BTC, or US$11.5 million at the time of the announcement.

Background

SatoshiDice launched in April 2012. As of January 2013, it had taken in approximately $15 million in bets. During 2012, SatoshiDice reported profits of over $500,000 in US dollars. However, in May 2013, SatoshiDice moved to block all US-based IP addresses, citing potential legal issues.

Name origin

The term satoshi, named after Satoshi Nakamoto, refers to the smallest unit of bitcoin, with value of 0.00000001 BTC. For certain transactions, the loser of a bet is paid "1 satoshi".

Offering

In August 2012, Erik Voorhees, founder of SatoshiDice, launched a "prospectus" for SatoshiDice, aiming to attract investors. The offering was not registered with the Securities and Exchange Commission (SEC), and was conducted in bitcoin through the website MPEx, based in Romania. SatoshiDice was described as an "unregistered corporation" represented by Voorhees, with the investment agreement stating that it may "not be modified by third parties, irrespective if said parties should style themselves "court of law", "judge" or otherwise". As of January 2013, SatoshiDice shares were valued at $8.9 million.In June 2014, Erik Voorhees was charged by the SEC over offering unregistered securities including SatoshiDICE and FeedZeBirds. Voorhees conducted a share buyback in addition to paying over $50,000 in penalties.



Timeline

People

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Erik Voorhees





Further reading

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Satoshi Dice Review

BitcoinChaser





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