When you knew he was going to default, you decided to create an insurance fund and forced everyone to accept that instead of coin you got back from pirate. That is where you scammed everyone, by pretending you never received any coin.
I didn’t know he was going to default. I knew what everyone else knew and you are a piece of shit to pretend otherwise.
“What everybody else” knew straight from the first day:
Post #2 in pirateat40’s original announcement thread:Merited by nullius (1)Smells like a classical HYIP scam.
Promoting Pirate’s Ponzi, and especially basing other investment instruments on it, showed
at best extremely poor judgment at the level of
at best gross negligence. I say that, making for the purposes of this post all the most favourable assumptions about you (and ignoring everything else discussed in years of other threads). Anybody with even an ounce of common sense could have seen that something looked wrong here:
Original topic title: Looking for lendersOriginal text, quoted here and elsewhere:The Business:
Over the last few months I have been selling BTC to a group of local people. Now this is a don't ask don't tell group of people so I can't tell you exactly where and to whom the coins ultimately end up with but so far its been pretty painless. During this last week I maxed out my available coins both personally and "leased" from other members and they needed a lot more. Up until now, I have dealt with my core group of friends and been able to handle the requests, but they seem to be getting larger and more frequent. So now I'm looking into other methods for keeping a consistent storage or on-demand availability of coins. I have two plans available for those sitting on coins.
On-Demand
When an order comes in that is over what I have available I'll send out a request to users in this plan requesting the total needed. The first to respond gets the deal and the transfer is made. These coins will be tide up for 1 business day to give me enough time to settle the transaction and acquire the coins to return. This plan pays a flat 3.5%.
Storage
This plan works as an ongoing commitment. You would send coins anytime to the address provided and you would earn interest on a daily basis. You can withdraw your balance at anytime, but I do request that you give me a couple hours to insure I have coverage for the next order. Interest payments are paid out ever 3 days until either you withdraw the funds or my local dealings dry up and I can no longer be profitable. This plan pays 1% per day.
Now I would hope to have enough people on the storage plan that I wouldn't have a need for the on-demand but I'll see how it goes. I ultimately want the ability to provide coins at anytime and any amount for these guys and we can all share in the profits.
I've created my own custom management software that I've built to monitor deposits, withdraws and interest payments. As this gets bigger I'll build a front end for it so users can view and manage there account and maybe putting that domain btclending.com to good use.
For more information send me a PM or just ask below. You can check out my OTC ratings in my signature.
Edit: I forgot to mention that dealing with anything less than 50BTC is more work than its worth so I've made that the minimum on both plans.
Thanks
In substantial effect, pirateat40 was essentially claiming to have an extraordinarily large opportunity for
arbitrage between the market he was making for his alleged shadowy clientele, and other markets. If I had such an unusual opportunity, I can think of all sorts of ways to handle it. They do not include seeking “lenders” on an Internet forum
with upfront promises of a return of “1% per day”. None of it made sense, except as a just-so story for pumping a scam.
I need not remark on what types of persons would hypothetically pay such a high price for Bitcoin on a regular basis, and could afford to keep doing so—and what the potential implications of
that may be, if pirate’s story had been anything other than cover for his scam.
And I say that as somebody who took about a 30% hit on his very first Bitcoin purchases (not upfront—a repeated string of market losses), due to wanting absolutely anonymous Bitcoin just on principle!So as for “what everyone else knew”. Nobody had any excuse for being surprised, when it turned out to be “
the largest scam in bitcoin history”.
OP here:
