Topic: BREAKING: SEC Charges pirateat40 With Running Bitcoin-Denominated Ponzi Scheme - page 2. (Read 44440 times)

I've been saying that for months. Years even.

If he was a criminal shouldn't he be in a jail?

Obviously they have nothing on him - just like they have nothing on MtGox, but the US authorities still froze 5mln USD on their account and do not want to give it back.

Btc24 - the Polish authorities froze 1mln EUR on their bank account and also do not want to give it back.

If you are saying that pirateat40 was a criminal, then by the same logic, you should be saying that MtGox and Btc24 are criminals, because they also got their funds frozen by authorities.
MtGox had enough money to compensate their customers, but bct24 customers are still suffering - it's not much different than the pirate's case.

Thanks for playing.



You lost. Do you want to try again? (Y/N)

I don't think you guys understand what has actually happened here.

Today it is pretty clear what pirate's business was about. IMO, it was not a ponzi scheme.
He was borrowing coins and lending them to other people, though keeping their USD as a collateral - probably with ~10%/week interests, maybe more.
The idea was that in case if they would not return him then coins, he would just buy them on the maker, using the dollars.
What has happened though is that at the very moment when he was trying to do so, his customers informed SEC and SEC has blocked the funds on his bank account - thus he was not able to buy back the coins and return them. And considering the price raise, he never will anymore, even if they will eventually release his funds.

You need to understand that this was probably someone's insidious plan to acquire hundreds of thousands of bitcoins, without moving the market, at a discounted price, and pirateat40 was probably just an unconscious sucker.

Which does not mean that he has not made lots of money on this, assuring people that his business model was safe, while in fact it wasn't - the pirate was just too stupid to see it.

So most important question we should be asking here is: who were his customers - who got the coins?
For me, whoever they were, it seems that like they had some good inside in either US gov of financial institutions (likely both).
It's a shame though that the sucker does not want to blow a whistle, since this is the least he could have done after doing this to people who had trusted him.

This is one of the worst ideas in human history ever.
Sure they are probably heavily influenced by having a bad father.
But you are denying them any chance of being good (-> being born guilty).
If everyone judges them for something they didn't do, why should they even try to do good?
It's like throwing you into prison, because your grand-grand-grand-father murdered somebody.

Indeed.

He might be there already.

This:


certainly reeks of antisocial personality disorder.

Leave the children out of it. Are you going to hold the cashier in the photo responsible for saying, "Have a nice day!" after he pays the bill with your stolen money? You want some crazy person to snatch his kids and then somehow punish them for being legally obliged to be in his care? You logic can lead people to dark places that are far worse then stealing people's money.

1) Do you know what Bitcoin is?
2) Do you know what a ponzi scheme is?
3a) Do you know what a comparison is?
3b) Do you know that two things must have at least one similarity to be compared?

http://regex.info/exif.cgi?imgurl=https%3A%2F%2Fscontent-a-lhr.xx.fbcdn.net%2Fhphotos-prn2%2F1390482_10201735090957295_180389736_n.jpg

AND

http://regex.info/exif.cgi?imgurl=https%3A%2F%2Fscontent-b-lhr.xx.fbcdn.net%2Fhphotos-ash4%2F1378326_10201734790629787_1728646743_n.jpg


See how warm everybody is dressed, thus possibly proving the date's correct?

I have and I have emailed the links and screenshots to the SEC so they know exactly what he is up too. What happened to his frozen accounts, I guess the sun melt that quickly.

What's the alternative, run away?

WTF are you talking about?

Technically this would be a meta ponzi scheme, transacted as it was via PonziCoin.

Holy shit, you're a creepy fucking moron. 

No I like seeing who getting limo rides off my money.

Franky

Her kids have nothing to do with this. Please take their photos down.

hmm. news has gone quiet on this.. but lets atleast look at what trendon is doing in real life right now

trendon and his wife hired out a stretched limo for the evening, for the kids to go on a 'haunted house' fun day
https://scontent-b-lhr.xx.fbcdn.net/hphotos-ash4/1378326_10201734790629787_1728646743_n.jpg

they stopped at a fast food place
https://scontent-a-lhr.xx.fbcdn.net/hphotos-prn2/1390482_10201735090957295_180389736_n.jpg

notice trendon and his wife at the cashiers desk in the background. and the old guy .. he is the limo driver.

long story short, it seems the fraud arrest and other matters hasn't phased them.

Edit: to anyone complaining that this breaches some privacy laws or someones right to a private life. my response: photos publicly available on facebook.. the end.

EDIT i have taken off the pictures from being instantly viewable due to complaints from posts below, but because the photos are direct links to the open and publicly accessable FB page i cant just black them out..

if i were to take the photo's and edit them and then upload them from tinypic or imgur. then its no longer part of the publicly released photo and i have not been given consent to edit their photo.. thus just linking a publicly accessable original photo without editing or moving to tinypic is the safest bet...

now this post has bumped. anyone with any legal updates?

i started buying btc right after the pirate scandal

always thought "trendon shavers" was a fake name, color me impressed. 

Did you see the FinCEN guidelines?

i seem to have missed this story when it happened. does anyone think this has implications for how the us government generally views / legitimizes bitcoin as currency, or at least something of value, like gold?