Topic: [GLBSE] BDK.BND (1%/week) *IN DEFAULT* - page 2. (Read 17514 times)

How do we know which email address is associated with that public key?

Working on work-arounds if I either do not receive or cannot legally act on db furnished by GLBSE. I don't know if my work-around will work, and relies on a third-party who I do not intend to discuss.

I do not intend to act on claims sent to me without me being given a current db (which I trust) of unit-holders noting a username and how many units they hold.

Here is the form I'd appreciate unit-holders sending to the email address associated with the public key:

**ENCRYPT USING GPG! PLEASE DO NOT SEND ME "NAKED" INFORMATION!! See bottom of message for public key to use.**
**ENCRYPT USING GPG! PLEASE DO NOT SEND ME "NAKED" INFORMATION!! See bottom of message for public key to use.**

Additional notes, mostly for legal reasons:
*I will not be reimbursing any dividends you may have lost on GLBSE. It is your responsibility to reclaim anything I've paid on GLBSE, not mine.
*I will be filing for a scammer tag if you write me to say you own units, and it turns out you have never owned any.
*I will pay out when I have a usable db. I am making no guarantees as to when this may be. Payouts may begin as early as tomorrow, or as late as January, 2025. I am not even necessarily guaranteeing payout -- it relies on me being provided a trusted db I can legally use.
*BDK.BND is still in default and I still do not have enough to pay everyone out in full. For "soft debt" to begin accumulating interest again, I both need to be furnished a trusted db of unit-holders, and I need unit-holders to individually verify their holdings with me. BOTH of those conditions must be met both for payout and for "soft debt" to begin accruing.
*I will publicly note when I have received a trusted db.
EDIT: If GLBSE sends me a db which already includes the information I've asked for AND I can legally act on it, I will use that, and assuming you checked that you want Issuers to receive the email & payout address you provided, it would not be necessary to also send me identical information. Basically, give info for me and hope I'm provided a db by a third party, or give info to GLBSE and hope they provide me a db, or do both and pat yourself on the back for being aggressively diligent.

Use this to encrypt messages:
-----BEGIN PGP PUBLIC KEY BLOCK-----
Version: GnuPG v2.0.17 (MingW32)
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t1SyNvMZTr4Q76ohXMrpbUY/dLekhpL3RsENTXqzBACV3R9Wa7I437YLpJgouOAf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=WpYQ
-----END PGP PUBLIC KEY BLOCK-----

While it's possible, I definitely didn't have up-to-par security practices at the time. My LastPass account was compromised first. This was not long after Bitcoinica was hacked, which is what I first suspected the culprit, but believe I found I used a randomly-generated password for that.

After LastPass was compromised, the person next tried to get into my Gmail account. I don't believe there was anything compromising (well - plenty which could've humiliated me, but nothing financial, and I'm not sure why anyone would think I'd keep financial docs in my email account), though given this wasn't long after the JRO/Hermes drama, it's possible the person may've been looking for correspondence were they particularly paranoid. Were that the case, the person probably would've realized I didn't correspond with JRO & company with that address, or any address on LastPass. However, after the person got into the Gmail account, there was an activity lull for hours. It was not until I mentioned my GLBSE account hadn't been emptied, hours later, and was kind of curious about why, that it was actually compromised and emptied. I had changed my passwords far prior to it being emptied, but GLBSE didn't have login sessions expire back then, and sessions weren't logged out when I changed the password, which is just bad.

Now, while it likely wasn't Bitcoinica which had the same pw as on LastPass, I was cycling through a set of passwords back then. Sensitive financial sites usually shared one of two passwords, and though I had LastPass, only started using that recently, and didn't go through and randomize all previous passwords. It is very possible my GLBSE pw and LastPass pw were the same at that time.

I filed a complaint against the person with Amazon EC2, which I had an IP/time log of through Gmail, because the attacker originally tried to use Tor, which was blocked. Amazon EC2 Abuse got back with me indicating the user had some type of mobile service website, but didn't go into detail, and refused to unless I got the police involved or could get Gmail to verify. I tried pressing more, but they quit responding to me. I knew someone relevant in Gmail (through this forum, as it happens) who looked into whether or not he could verify the log as accurate, but it turned out that policy was to refuse assistance without a police report, which I didn't want to file because I wasn't sure how receptive they'd be to "someone stole a bunch of digital currency and securities on an questionably-legal exchange," nor what other investigations into me might result from me opening up. I did mention to Nefario that I may need logs from him in order to file with the police (which I was still internally arguing about), to which I don't believe he responded. He didn't present himself suspiciously to me, though I certainly would've appreciated him responding to calls/emails made to him before my account was emptied. Whoever did compromise the GLBSE account, however, was either exceptionally uncaring, or hateful, as they sold tons of securities for next-to-nothing, which I almost had to recognize as legitimate. However, Nefario took it upon himself to immediately lock the securities affected and reverse the transactions.

No reason to speculate on my behalf, though. It'd "fit" well in some aspects, but I certainly have no evidence. The attack was really queer for someone I'd assume would want to act quickly and quietly, so I still don't really know what to make of it. It'd be nice to have closure, if nothing else, because it still bothers me that I still have absolutely no idea why the attacker waited many hours between when he compromised the LastPass account to when he emptied my GLBSE account, and also appeared to wait for me to acknowledge he didn't empty it (or maybe he didn't realize I had an account? I never did get the logs from Nef on that, so dunno times).

Sorry for not updating on Monday. Figured out why phone tether failed, finally (haven't had much time to look). Phone is unrooting itself (judging by Google, I'm the only person on Earth with this issue on an S3 through Sprint) which causes wifi tether to fail. It does this both during reboots and randomly while on. It resets to stock recovery image.... I've dinked around with some options this time... will see if it sticks.

I have been receiving some second-hand legal advice atop my own research. I believe I qualify for certain exceptions to usual Accredited Investor laws, and that GLBSE, which acted as both broker and exchange, afforded operators of underlying operations related to GLBSE securities certain legal protections. However, should anyone choose to act on contracts without that legal buffer (GLBSE), they may be acting criminally, even if an operator is clearly not facilitating any type of securities exchange. As such, I will not be claiming anything through GLBSE, nor do I have immediate plans to act on any information coming directly from GLBSE. I'm actively seeking first-hand legal advice from someone relevant which should help me decide how to proceed -- I sure don't know what I'm doing... CFR's fucking impossible to read and comprehend. It's like... For possible exemptions, refer to section (2) of §9313-C. §9313-C (2_: Exemptions allotted under §9311 1(c) are permitted unless conditions of §9313 2(d) and §9313 2(f) are made, in which case §9408 4(a) requirements must be met to satisfy the conditions of §9310-B 3(a), as defined in section 1504(a) of the Internal Revenue Code of 1954 (26 U.S.C. 1504(a)), as amended by §9590 and §9591.
[a]In a condition where the entity is a "magnanimous actuarial," as defined in §9311 1(c), filing must occur as outlined in §9311 1(c) except when acting as a "snatch latch," as defined in §9313-C 5(a).

Anyway... "Soft Debt" did not earn interest on 10/8/12 due to reasons I've given in previous posts. "Soft debt" likely will not increase any time in October, but possibly in November, depending on when GLBSE releases .csv files to Issuers, what's in them, and whether or not I'm legally allowed to act on the information.

For reference:
Bonds Issued: 19590
"Hard Debt": (19590*.92139)= 1805BTC
"Soft Debt": (1959*.093139)= 1824.59BTC
Current bond value @ "lock in" rate (this is the amount I claim I am liable for assuming interest does not accumulate after the date I announced default): 0.092139BTC/bond
Current bond value @ "compounded" rate (this is the amount I claim I am liable for assuming interest DOES* accumulate after the date I announced default): 0.093139BTC/bond
*"soft debt" or "compounded debt" accumulates interest only on Mondays where I have the possibility to repay. It does not accumulate interest while I do not have access to repay bond-holders, such as when GLBSE is down and I do not have ability to repay unit-holders. Please refer to Board 78.0, Topic 79923, Message 1248967, Paragraph 3 for more complete explanation, as amended by Board 78.0, Topic 79923, Message 1261518.

His name is Nefario.  How could you people not see this coming?  How did you not learn your lesson after getting scammed by a guy named pirate?

..... That never occurred to me...

It wasn't hacked.  It was Nefario helping himself.   

Yes... spies told me of your IRC posts.

I'll admit what's happened with GLBSE is pretty convenient for me. My account was hacked months ago wiping out all securities I held on there, and the last thing I did on there was make a large-ish dividend payment on BDK.BND, so all I had in there was maybe 4 or 5 coins.

I've been watching the news on GLBSE with interest, but all most everyone has is speculation given Nef's keeping fairly quiet. I have nothing extraordinary to report on my end.

AFAIK, a list will be provided to Issuers. I have no solid plans on how to proceed and will not until I see how the GLBSE situation is resolved and how many more "legal troubles" begin to arise for equity operations. As I have never sold equity, did register IOUCoin with The State, have a relatively small operation, and have never claimed BDK a bank, I doubt I'm at any significant risk. It'll depend on how aggressive investigations are, however. I'm sure there are a handful of obscure laws I've violated along the way which The State could pin on me if they were particularly interested.

As I am not at fault for missing payments between now and when a list is furnished to me, I believe it reasonable not to compound "soft debt" until a list is provided to me. Upon me being furnished a proper list of current investors, repayment will need to be negotiated with every single person individually. "Soft Debt" will not be accruing interest until I've had a reasonable amount of time to get into contact with everyone -- I'll announce when this is, and if you disagree, you can always sue. I will have a more concrete plan on what I believe is and isn't reasonable for "Soft Debt" to prevent non-communicative investors from having a 10kBTC debt from me in 2050 which their children decide to call.

In the extraordinarily slim case I am prosecuted by the SEC or a similar agency, non-legal wife is familiar with a contingency plan and will be able to pay if coins are in my account, though I doubt she'd be able (nor in any condition) to repay what's owed, nor be able to communicate with many tens of individuals to work repayment out. I do not intend to take liability for soft debt interest accrual if I'm incarcerated simply because it'd increase to an unrealistic amount.

I'll keep y'all posted as I'm made aware of or create relevant information.
-Ben

KLUDGE ITS YOUR LUCKY DAY!

Thanks Kluge, that's what I was looking for.

On the loan - have you tried prosper.com or lendingclub.com?  Both offer unsecured loans up to $25k and have lenders who fund debt consolidations (basically what you are trying to accomplish).  Locking in your exchange rate could be huge if it keeps rising.

I sure hope so.

Sir, your signature! Where did you get it? Can I get one too?

What employment income? Last I checked you were a jobless do-nothing, sitting on his couch all day actively declining job offers relying on internet magic money to make you rich.

I think what actually happened was the wife said "There is no way in hell you are taking my retirement to pay for your stupid online play money!" (paraphrased)

So he didn't actually wipe out the account, he just removed it from the list of assets available to him.

Yeah, you're quite the victim here.

Man, you wiped out your own wife's retirement account on Internet Funny Munny.  You could have at least stopped at losing all your own money, but no, you had to break someone else before burning out.  That's cold, man.

"Hard debt" is principal + 1% (the buyout value originally outlined in contract) - so .101BTC/bond -- this can be almost certainly be paid off within a year even if everything goes against me.
"Soft debt" is what I believe I owe, and is hard debt + 1% week compounding interest on outstanding "soft debt" balance each Monday. -- this can be paid off if things start going my way and I can get a good chunk of the debt out of the way by the end of the year.


I would enjoy a USD loan to convert this debt to, and have tried, but do not have 2 years' worth of tax-verifiable income. I've gone to three separate CUs, and all refuse to talk about the loan, even if I put our residence (worth ~5x BDK.BND debt) as collateral, without 2 years' consistent, verifiable income. I have multiple plans to get this taken care of (outside of "maybe everyone'll just decide to pay back within a couple months") - I just need some luck for at least one of them to work. I'd prefer to keep most details of those plans to myself, and do not intend to change the way BDK.BND is being repaid. Because these plans require some luck in things working exactly as I'd like them, I cannot either a firm or loose repayment schedule other than "hard debt will probably be repaid within a year, soft debt may or may not be repaid eventually depending on my luck, and I'll give a weekly indication that I'm paying attention to the situation." If I have good luck, I can repay BDK.BND holders soft debt in ~1 month, and depends on me selling off my largest default (~3.7kBTC). This would also probably allow me to pay BDK-holders a reasonable amount instead of the negative equity amount. If I have moderate luck, my credit cards will be off the new member probationary period in ~2-4 months, and I can just load all my debt on there. If I have moderate-poor luck, repayment will rely on my employment income, BTC price doesn't deviate too much from where it is, and repayment will be painfully slow. If I have bad luck, the price of BTC will soar to $20/coin or more without sign of relief, and repayment will likely be unfeasible. If I have horrible luck, I'll be sued into personal bankruptcy.

Quick note @ TheBible: I don't consider having my emergency access to non-legal wife's 401(k) revoked part of "the Bitcoiniverse."

I want to make sure I have this straight, Kluge, please confirm...

What you're calling "hard debt" is the principal of the bonds (without interest) whereas "soft debt" is the principal plus compounded interest at 1%?

It sounds like you'd like to make good on the full soft debt, but don't foresee that happening, correct?  Though you will continue to pay toward the hard debt until it is extinguished.


Now for the advice part, which I hope you'll not take offense to.  I think most of your bondholders want to see you succeed, and hopefully can provide even more constructive ideas to help you out...

Communication: one of the things that caused other defaulters around here big problems was a lack of communication.  You need to avoid repeating the things you wrote in post 115 of this thread, and instead post a clear plan you can live with as well as weekly updates (even when you don't feel like it).  No need to obsess over every comment (please ignore the trolls), but weekly updates (even without payments) will show you still have some respect for your bondholders.

Income: do you have a source of income?  It's impossible to pay out what you don't have.

Buyback: there are shares for sale on GLBSE below your hard debt/share amount.  You should be buying those back on the open market before paying out divs.  Doing so will cut both the hard and soft debt amounts fastest.  I realize some might see it as unethical to buy those shares at a discount to book value, but keep in mind that someone is asking to get out of their BDK.BND position and is willing to take a loss, so help them - it's a win-win.

Conversion Rate Risk:  if your income is in USD and your payments are in BTC, any increase in the exchange rate could be a big problem (likewise a decrease could help you).  If you think the BTC is going to keep appreciating like most people around here do, it would benefit you to find a way to convert the debt to USD asap (even part of it).

Family: your family should be the most important thing to you.  Take care of them first.  And stop talking about them in here, it just attracts the crazies.  If you can't make any bond payments for a while because of something family related, make that week's update a little on the vague side.


Quoting today's update so I can find the numbers easily in the future.

Kluge, I understand that you don't feel like communicating, but you should reconsider. You're showing goodwill by starting with payments, but communication will go a long way to keep your investors relatively "happy" while you work on repaying your debts. I wish you the best of luck!

This needs to be preserved. Also this


And yes, I claim dibs on having been the first one to tell him this. As I was the first one to say Pirate's a ponzi. Curious about the effect?