Get credit, purchase Bitcoin, declare bankruptcy, profit?? - page 2.

Jozzaboy

member

Activity: 98

Merit: 10

Quote from: hendo420 on June 18, 2013, 02:39:37 AM

Quote from: odolvlobo on June 17, 2013, 11:12:30 PM

Quote from: Jozzaboy on June 17, 2013, 10:12:08 PM

Good evening,

Now, this might have only just occurred to me now and of course this would constitute fraud but what is stopping an individual from getting a line of credit in the 6 figure range, then purchasing a massive amount of Bitcoins then rinse with bankruptcy? I imagine the individual wouldn't care about his credit if they had several hundred thousand in the 'wallet'.

Your thoughts?

P.s. I hope someone is foolish enough to do this, it would prop the price up a bit for the rest of us Cheesy

There are a couple of problems:

1. First, someone with the ability to obtain a "6-figure" line-of-credit makes a lot of money and has a lot of assets, and would it be stupid to risk losing everything for only a "6-figure" payout.
2. Second, the person would have to show what they did with the money, and convince the judge that they were not committing fraud.

1. Start a business(Get loans ect.)
2. Fudge the paperwork so you lose your ass(In reality moving thoes funds to bitcoin)
3. Close the business and file bankruptcy.
4. Wait some time.
5. Start a new business
6. Fudge the paperwork and sell the bitcoins counting it as profit.
7. pay taxes on everything.
8. Profit(Literally)

You might actually get away with the business one if you were savvy enough with the paperwork unfortunately. This reminds me of the man who took out a loan for 30k on Bitcoins earlier this year, unfortunately the price shot up exponentially and he paid it off in a legal fashion but I'm sure this con has been attempted before.

hendo420

sr. member

Activity: 420

Merit: 250

Quote from: odolvlobo on June 17, 2013, 11:12:30 PM

Quote from: Jozzaboy on June 17, 2013, 10:12:08 PM

Good evening,

Now, this might have only just occurred to me now and of course this would constitute fraud but what is stopping an individual from getting a line of credit in the 6 figure range, then purchasing a massive amount of Bitcoins then rinse with bankruptcy? I imagine the individual wouldn't care about his credit if they had several hundred thousand in the 'wallet'.

Your thoughts?

P.s. I hope someone is foolish enough to do this, it would prop the price up a bit for the rest of us Cheesy

There are a couple of problems:

1. First, someone with the ability to obtain a "6-figure" line-of-credit makes a lot of money and has a lot of assets, and would it be stupid to risk losing everything for only a "6-figure" payout.
2. Second, the person would have to show what they did with the money, and convince the judge that they were not committing fraud.

1. Start a business(Get loans ect.)
2. Fudge the paperwork so you lose your ass(In reality moving thoes funds to bitcoin)
3. Close the business and file bankruptcy.
4. Wait some time.
5. Start a new business
6. Fudge the paperwork and sell the bitcoins counting it as profit.
7. pay taxes on everything.
8. Profit(Literally)

odolvlobo

legendary

Activity: 4466

Merit: 3391

Quote from: Jozzaboy on June 17, 2013, 10:12:08 PM

Good evening,

Now, this might have only just occurred to me now and of course this would constitute fraud but what is stopping an individual from getting a line of credit in the 6 figure range, then purchasing a massive amount of Bitcoins then rinse with bankruptcy? I imagine the individual wouldn't care about his credit if they had several hundred thousand in the 'wallet'.

Your thoughts?

P.s. I hope someone is foolish enough to do this, it would prop the price up a bit for the rest of us Cheesy

There are a couple of problems:

1. First, someone with the ability to obtain a "6-figure" line-of-credit makes a lot of money and has a lot of assets, and would it be stupid to risk losing everything for only a "6-figure" payout.
2. Second, the person would have to show what they did with the money, and convince the judge that they were not committing fraud.

Cubic Earth

legendary

Activity: 1176

Merit: 1020

The system is aware of maneuvers like that, and you don't need bitcoin to hide your assets. Your strategy has been possible with gold forever. They are not going to discharge your debts, however, it they determine that you assumed those debts with no intent to pay them back. So if you sell you car, sell your house and take out a loan, put $100k on your credit cards and funnel it all into gold, and then declare bankruptcy, you'll probably just end up in jail. Be prepared to flee to Mexico.

justusranvier

legendary

Activity: 1400

Merit: 1013

Depending on the specific laws of the area you live in, and the care to which you keep your Bitcoin holdings private, it's something that a dedicated person could successfully pull off.

Gordon Bleu

sr. member

Activity: 308

Merit: 250

verified ✔

it^s a Dream i know but if Satoshis appears in afew Years after even more greedy Bastards joining the Bitcoin Train
with dat Wallet he could solve a few World Problems i guess, but who would do that ?

saddambitcoin

legendary

Activity: 1610

Merit: 1004

Quote from: rudrigorc2 on June 17, 2013, 10:22:44 PM

I remembered this:

Quote

In 2008, anticapitalist campaigner Enric Durán borrowed €492,000 ($642,306) from 39 different financial entities with absolutely no hope or intention of paying it back. But—as you might expect from an anti-capitalist campaigner—he didn't spend it all on diamond kitchen knives and luxury frisbees. Instead, he ploughed it into a number of unspecified anti-capitalist causes and spent the rest on Crisi, a free newspaper that detailed how he'd done what he did and urged others to do the same.

That display of reckless Robin Hoodery turned him into a hero overnight, but the one problem with becoming a hero through questionably legal means is that, for whatever reason, the police feel like they have to go and lock you up for it. Enric spent two months in jail in 2011 and was released pending trial, which was set for earlier this month. His minimum sentence would be eight years, which might explain why he refused to attend the first trial dates, prompting a warrant to be put out for his arrest.

full text: http://www.vice.com/read/spains-robin-hood-prefers

hope he's got a brain wallet!!

rudrigorc2

legendary

Activity: 1064

Merit: 1000

I remembered this:

Quote

In 2008, anticapitalist campaigner Enric Durán borrowed €492,000 ($642,306) from 39 different financial entities with absolutely no hope or intention of paying it back. But—as you might expect from an anti-capitalist campaigner—he didn't spend it all on diamond kitchen knives and luxury frisbees. Instead, he ploughed it into a number of unspecified anti-capitalist causes and spent the rest on Crisi, a free newspaper that detailed how he'd done what he did and urged others to do the same.

That display of reckless Robin Hoodery turned him into a hero overnight, but the one problem with becoming a hero through questionably legal means is that, for whatever reason, the police feel like they have to go and lock you up for it. Enric spent two months in jail in 2011 and was released pending trial, which was set for earlier this month. His minimum sentence would be eight years, which might explain why he refused to attend the first trial dates, prompting a warrant to be put out for his arrest.

full text: http://www.vice.com/read/spains-robin-hood-prefers

saddambitcoin

legendary

Activity: 1610

Merit: 1004

They would have a more difficult time in the near-term future spending their BTC but I suppose if one wants to destroy their credit this is a good idea. Personally I already ruined my credit so I can't really entertain the idea to begin with.

Jozzaboy

member

Activity: 98

Merit: 10

Good evening,

Now, this might have only just occurred to me now and of course this would constitute fraud but what is stopping an individual from getting a line of credit in the 6 figure range, then purchasing a massive amount of Bitcoins then rinse with bankruptcy? I imagine the individual wouldn't care about his credit if they had several hundred thousand in the 'wallet'.

Your thoughts?

P.s. I hope someone is foolish enough to do this, it would prop the price up a bit for the rest of us Cheesy

Legal notice: All this topic and all replies are fictitious works for entertainment purposes only. To perform the action herein would constitute Fraud.

Topic: Get credit, purchase Bitcoin, declare bankruptcy, profit?? - page 2. (Read 5350 times)