Topic: BREAKING: SEC Charges pirateat40 With Running Bitcoin-Denominated Ponzi Scheme - page 9. (Read 44403 times)
July 24, 2013, 01:02:28 AM
Yall better hope this case gets dismissed on a 12b measure.
July 24, 2013, 12:52:21 AM
Excellent news, hopefully he gets plenty of time in a nasty place 
I'm guessing a year--time served--and a fifty buck fine, half the amount that Sonny Vleisides got for ripping off poor little old ladies totally millions with his lottery scheme. Reason? Trendon did this to fellow bitcoiners ONLY! Not a single non-bitcoiner lost a single satoshi with his scheme. Think about that for a second.
Enjoy the following:
This is a great exercise, I just hope people stay the course and realize this is not just, " someone did something wrong in the past let's forget about it. "
The guy pulled a multi-million dollar scam and people here and elsewhere have invested hundreds of thousands of dollars in upfront money which can be EASILY stolen since the bulk of it is in BTC.
I have heard many of the same excuses so far in this matter which were used to justify pirate40's behavior. Stop being so naive and understand this is not just someone getting arrested in the past for a minor crime.
Any legitimate business owner would have to answer to this in the real world.
I hope it works out and if BFL has good intentions then this should end the criticism's of their company once and for all.
The guy pulled a multi-million dollar scam and people here and elsewhere have invested hundreds of thousands of dollars in upfront money which can be EASILY stolen since the bulk of it is in BTC.
I have heard many of the same excuses so far in this matter which were used to justify pirate40's behavior. Stop being so naive and understand this is not just someone getting arrested in the past for a minor crime.
Any legitimate business owner would have to answer to this in the real world.
I hope it works out and if BFL has good intentions then this should end the criticism's of their company once and for all.
July 24, 2013, 12:17:08 AM
we should all go visit him in prison and get our last laugh!
IANAL, but it looks like a civil complaint - a lawsuit seeking an injunction, disgorgement of ill-gotten gains, and penalties.
It also seeks a finding that the defendant violated securities law, but I don't know if that means this case could result in jail time.
Does anyone know if there will be a separate criminal action?
July 24, 2013, 12:16:12 AM
When I saw the story, I thought the feds had finally busted BFL. Perhaps some other day
July 23, 2013, 10:23:34 PM
Quote
Shavers raised at least 700,000 Bitcoin in BTCST investments, which amounted to more than $4.5 million based on the average price of Bitcoin in 2011 and 2012 when the investments were offered and sold. Today the value of 700,000 Bitcoin exceeds $60 million.
LOL.... if he had only offered a 'yearly' return of say 200% everything would have been clean...
July 23, 2013, 10:06:12 PM
What, if at all, impact do you think this will have on the price of BTC?
July 23, 2013, 09:53:15 PM
This thread makes me happy 
July 23, 2013, 09:38:48 PM
I'm trying to dig up that email that I got from the SEC...
Ah yes. 2012-09-24
Ah yes. 2012-09-24
July 23, 2013, 08:30:25 PM
Wow! I didn't believe it first. Was he so stupid to get busted?
July 23, 2013, 08:17:54 PM
Excellent news, hopefully he gets plenty of time in a nasty place
July 23, 2013, 07:11:30 PM
The SEC should have deferred to BTCTalk for punishment. A bunch of fucking idiots who believed 7% weekly returns are a possibility should be happy with their scammer tag above his avatar. It would be a real shame if all of the fucking morons who threw their bit at such stupidity were able to recoup anything.
They won't. Reading between the lines, Pirate lost most (90%+) of the stolen funds day trading. He siphoned off ~150K BTC of victims funds (~700K BTC deposited, ~550K BTC paid back as withdrawals & interest). At the time 150K BTC was worth >$1M yet he had trading losses and withdrew less than $150K from the exchange account. So most of what was stolen is either a)imaginary interest which is never coming back or b) money Pirate lost playing day trader.
Of the remaining $150K I would imagine he has probably wasted a good chunk of that. Say there is $50K left, remember this was a BTC based scam and the price of BTC has risen 10x to 15x since then. Today $50K/$100 ea = 500 BTC. 500 BTC out of ~150,000 BTC stolen isn't much of a recovery.
TL/DR Pirate stole siphoned off ~150,000 BTC and best case scenario the feds might be able to recover 500 BTC (0.3%). The feds may simply seek in reim forfeiture as the entire operation violated federal law and victims will never see a dime. Not saying it is fair but honestly we are talking a 99% to 100% loss for investors.
July 23, 2013, 07:03:37 PM
I predict the following:
- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back
- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back
You forgot:
-lawyers get richer
-SEC gets 'manual relief' from its AlphaSoup friends
and one unused ticket to Brazil
Let me guess, he spent all this time learning Spanish, only to discover...
July 23, 2013, 06:00:42 PM
I predict the following:
- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back
- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back
July 23, 2013, 05:51:48 PM
I wonder how bitcoins will be frozen.
July 23, 2013, 05:28:23 PM
I knew he just pissed it all away on gambling and other bullsiht. I bet he has nothing left to show for it except a handful of empty online poker accounts, a car with multiple loans against it, and one unused ticket to Brazil.
I predict the following:
- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back
I predict the following:
- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back
July 23, 2013, 04:49:23 PM
To misquote what MNW once wrote about Pirate:
Quote
I like Butterfly Labs for one, even if they are running a likely illegal and undercover operation for three reasons:
What do they call this in the real world again? Oh yea, professionalism.
- They make bank
- They piss everyone else off in how they do it
- No one can stop them because people follow the money
- They don't constantly defend himself on a bullshit unrelated forum, sans Inaba when he's off his meds
What do they call this in the real world again? Oh yea, professionalism.
July 23, 2013, 04:44:55 PM
I don't think so, GH. He took 30 minutes to search this forum. 
That'll teach me to get my hopes up.
lol, actually I took 5 minutes encrypting that folder an searching there and some time for a little refresher, reading it.
Good, now I feel better.
July 23, 2013, 04:42:39 PM
I'll just add this quote to this one:
Quote
Howdy Y'all
So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders. Most of the information seems to be fabricated by people wearing pointy foil hats. On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum. As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch. I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.
So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders. Most of the information seems to be fabricated by people wearing pointy foil hats. On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum. As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch. I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.
I like that quote. It's so Zerlan.
You're just saying that because there's an extra space after each period.
You'll love the next quote by Trendon.
Quote
Q - Are you running a drug ring and laundering money for Silk Road?
A - Are you kidding me? I live in the US. If anything I was doing was illegal, my CPA, attorneys, and scariest... my wife would have my head. So to make it clear, nothing I'm associated with is illegal.
A - Are you kidding me? I live in the US. If anything I was doing was illegal, my CPA, attorneys, and scariest... my wife would have my head. So to make it clear, nothing I'm associated with is illegal.
July 23, 2013, 04:40:17 PM
Do people need to be hit over the fuckin' head to be shown that BFL is not operating on the up-and-up?
YesMmmkay!
July 23, 2013, 04:39:33 PM
I'll just add this quote to this one:
Quote
Howdy Y'all
So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders. Most of the information seems to be fabricated by people wearing pointy foil hats. On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum. As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch. I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.
So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders. Most of the information seems to be fabricated by people wearing pointy foil hats. On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum. As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch. I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.
I like that quote. It's so Zerlan.
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