Topic: Pirate accomplices - page 2. (Read 30339 times)

https://twitter.com/nakaska

His last post was: You Can Quit But You Can't Give Up http://bit.ly/tT9RkZ

The bit.ly address is http://bryce.vc/post/13198157725/you-can-quit-but-you-cant-give-up

The author of post:


http://oatv.com/


Head on over to the above to read more, but back to Nakaska's Twitter account. I touched on this before, but possibly effed-up with that AMD stuff. Once again, I bring to your attention Intellinerds, but this time I followed the links (plural).

http://blog.intellinerds.com/post/3437693856/tripdiv-launch

When you click on TripDiv you arrive at (I want a BlowBob for this) https://mining.demo.nakaska.com/


http://www.webboar.com/www/intellinerds.com

~Bruno~

SOB! Right back to BusCog: http://www.linkedin.com/profile/view?id=69812266&authType=OUT_OF_NETWORK&authToken=zAt9&trk=hb_upphoto

What are you doing the help BTC economy beside forum hero? Every single day I am trading goods and services for BTC. I have literally lived off bitcons for over a year. I haven't gotten any USD paycheck since college which was many years ago. Yes you can post on forums with ideals that are baselsss. But really what do you know? Let me tell you. People that do business with btc don't give a shit about idiots that "invest" in 7% a week ponzis or the current exchange rate. Is there someone that trades USD/EUR/GBP fir BTC? If yes then bitcoin is fine. Cry elsewhere.   

But everyone liked 3400% interest ......we were all going to be millionaires
in just a few months

Unfortunately, there's a lot of "they's" these days.  "They" line up to get fucked, and "they" scream LOUD on the forum after they're fucked.  Even BTC'ers who lost nothing in one scam or another scream LOUD after "they" get fucked.  Ultimately, this scares away BTC adoption by legitimate new businesses who come here looking for answers on how they might profit from accepting BTC.  Sad.

I wish the bitcoin community would shift it's focus away from the zero-sum game of trading BTC for fiat gambling in favor of working on vendor adoption.  If you have enough people exchanging BTC for REAL goods and services, all the financial scam drama that so regularly occurs here would fade into insignificance.

But that requires work, and people are lazy.

 

Getting fucked in the ass would be a kindness.

In reality, they got fucked in the ass with a jagged two by four lined with rusty nails!

Who are you speaking to, 556j? No one in quite a few posts in this thread has said anything to the contrary. And some of us just like to theorize, and that often means exploring all possibilties, even the ones that might support legitimacy...

disclaimer; I lost 0 coins to BTCS&T

If you read the BS&T thread from the beginning, pirate went to a great deal of trouble to create the impression that he was money laundering (even talking about how after he'd been paid in cash by his clients he didn't transfer the BTC until he was "out of harm's way").  Whether he was actually doing it or not, it was a good way to both deflect questions about his clients and their business and to create an explanation for how he was able to offer high returns.  He told people what they wanted to hear.

Was already shown the coins didn't move enough to be laundering scheme. It's really sad how far people will go to try and argue they weren't actually tricked into a ponzi. Not to mention the fact that for someone that knew as much as pirate about btc it was worth the risk to invest in own business and have some faith in btc. As the interest loss would be > than volatility. I know bitlane has nothing better to do with his life than post on forums but the rest of you are better than this. Accept you got fucked in the ass, learn your lesson and move on. This is a sad show to witness.

Maybe.. For all we know, Pirate could have had him post that to get a reading on community sentiment...

Reading through this gives a list of stupid people to forever ignore.

That was the first thing that popped into my head when I saw it as well - ZACH

hmm

"we know that even people who don't have a relationship with us are using it to launder."

"Pirate is a nice guy at heart, but he does business with some ugly people who I don't want coming back to me."

My bet is that it is Nakaska

Sounds like some dangerous territory...

https://bitcointalksearch.org/topic/pirateat40s-money-laundering-operations-gpumax-and-bst-82560
Relevant?  Has anyone heard from OP since?

Others have already debunked this business plan based on the plain unnecessary costs of choosing to lend money at 3400%/year interest when something like 10%/year interest is much better choise.

However that is not the only argument to debunk this business plan.

The problem is that maybe you looked at the 30% profit of selling the coins and thought that when it is bigger number than the 7%/week interest, then the business is making money. Well it is not. The 30% profit is a one-time profit of selling the coins, but the 7%/week interest keeps on running till infinity until the debt is cleared. The coins that pirate has sold still remain as coins that pirate has lended and he needs to pay 7% for them on this week, another 7% the next week and 7% the week after that and pretty soon the whole 30% one-time profit is eaten and pirate has massive problems keeping paying the interest with no new profit in sight with those coins he has long sold. If you think that pirate solves the problem with new customers for more coins and pirate then lends new money to sell them that means running the traditional "running a massive loss but making it up in the volume" business plan.

I cannot think any other solution to the problem but pirate needs to start rotating his entire capital. Not just new money, but everything also from the beginning. Use the obtained cash to buy massive amounts of coins and sell them at profit again. This might work if pirate would rotate his entire lended capital every 2 weeks raking in new profits every 2 weeks.

However there are big problems in this sceme as well. The primary motivation to all this is money laundering, right? Typically money laundering works in an trivially normal established business which does not raise any eyebrows if somebody is caught involved in that. Additionally the volume of the global business must be so huge that the laundered money does not blip on the radar.

Now imagine that pirate needs to rotate his entire capital of 500k BTC ( or whatever ) in every 2 weeks. Annually it means that pirate would need to buy at annual level about 12500k BTC and sell them to the buyer which needs then to sell them in some place so that the fiat money coming from the end looks like it is plain normal vanilla money with nothing suspicious ( Where could he do that? ). 12500k BTC means USD125M money flow for pirate to buy coins with and then somebody to cash out. Sounds slightly nontrivial and if IRS gets hold of the wind, mr. pirate might be in trouble explaining where is he getting money to buy USD125M worth of bitcoin every year.

Somebody could think this whole business plan sounds ludicrous.

The exactly same argument can be said about any other business plan which involves a one-time profit. The massive profits need to rake in every couple of weeks. Using the lended capital to controlling the BTC price is another business plan where I don't see the frequency of the massive profits to be high enough and also needs to rotate huge amounts of capital very fast to obtain enough profits in this scheme as in here the profits can not be expected to be 30% per every rotation of the whole capital. Somebody could have seen this massive flow of capital if it really happened.

On the other hand unwinding the operation is trivially simple. Just use the same methods you use every 2 weeks to buy the coins and give them back to lenders and the massive debt and interest costs vanish instantly.

true that. little kids know that.

e: typo

I'm not grumpy.  I broke even, my pass through customers made a handsome profit, and I got kudos for paying my customers out from my own pocket.  On top of that Matthew will owe me 200 BTC and Pirate may yet do a partial payout.  I've got nothing to complain about, just thought your reasoning was odd and decided to point it out.

Heh, I've never been very fashionable...except for a small period of time during the early 80s.





OK.  If you need to stabilize the BTC/USD exchange rate, and you don't want to spend your own money buying enough BTC to control the market, you borrow the BTC.  In order to attract enough BTC investment, you have to offer a significantly higher ROR than other borrowers in the market, so you offer 7% (but only actually pay ~6%).  Sure, paying off your lenders with all the money you make is an option in the future, but doing so puts you long in BTC, and maybe you don't want that.  Remember, you're a money launderer.  You never risk your own money for anything.

As I stated earlier, I'm playing devil's advocate with these little theories I've been posting.  Just trying to hammer at the ponzi argument a little to see how well it stands up.  My best guess at this point is that while BTCST may not have started as a ponzi, it eventually became one.  Of course it's all academic at this point.

Anyways, thanks for all your replies to my unfashionable posts!  

If you want to dilute you have to rotate the money. Sitting on the same funds for 6 months (and thus owing 10x the principal) doesnt really help

I wonder why didn't Pirate offer, say, 2 or 3% a week (which is still a lot) would still warrant him a lot of ''investors'' and maybe he wouldn't run into these troubles... not to mention he would look a bit more credible and could keep more for himself. But maybe there is something more to this.

Dilution. You would want to dilute both the dirty money with cleaner money as well as dilute the investigative resources of whoever is after you.

Bernie Madoff unfortunately stole the spotlight from Bernie Ebbers.

And studying the scams of Bernie Ebbers is way more educational.