Bitcoin Forum

The developer sold "destroyed" coins and closed the thread.
 ;D

Glad that I checked bittrex before placing a buy order on c-cex.Just now

a great show.
stay away from these ICPOs.most of them are scam

Isn't it bittrex that holds it? So Bittrex dumped it, why?

He was holding 3.5 million coin that he said he was going to destroy from the ICO?  So he figured out an awesome way to get rid of it?  He sold it to stupid retards who put up buy orders for it?

These are questions btw not statements.

Yes to all

Gullible fools.

Why aren't you scrutinizing these scams more here?

ICO coin = scam coin

Remember it guys!

Did bittrex confirmed that dev sent them ipo coins? Or everyone just belived words scam dev?... And let him dump?

Devs profit:

IPO's + 3.5m coins = Summer profit ;D

Doing some research on this "Dev". Post history for miles, and linked twitter accounts to the Usecoin account. Fuck this guy. Let's make an example out of him before he can do it again.

Made a pool for this :(

I feel USEd

Someone buys this shit  ;D

If he did dump coins that were suppose to be destroyed I am impressed.  This is yet another inventive way that a scammer came up with for fuck people over.

Just bought a few, lets see ;)

 :o  usecoin's dev name is interesting shameonhe

1 hour and price 1 satoshi

[21:07] <MegaCoinTrader> Soo, was USE premined destroyed?
[21:07] <@bittrex-rami> no
[21:07] <@bittrex-rami> it was never sent to us

Another scam dev.. let's admit it..

Bittrex conformed "coin dev never provided us the remaining ICO funds to burn."
https://twitter.com/BittrexExchange/status/503227486788808704

it's over use = scam shit coin >:( >:(

USEMARKET LAUNCH COUNTDOWN http://bit.ly/1mxLPeA

Don't forget the COUNTDOWN!

Why dev has not posted countdown for DUMP?  :D

Let's just track down this mofo. I need his ID :)

Community takeover for the bagholders.

Ummm shouldn't this have been a condition for him to send those coins to you before you fucking shitbags listed the coin?  Bittrex = scammy fucking cocksuckers.

At this point if you still trust bittrex you deserve whatever you get.  They could have at least given the public a heads up that a 3.5 million coin premine was lurking.  What is your excuse for not informing people about this bittrex?  My guess is after seeing 6 different scams on bittrex now that they are the ones doing the scams.

+1 Bittrex scammers.

Bittrex didn't do this coin IPO, only by himself and an escrow.

Yes but they knew there were 3.5 million coins out there. 

I'm on board with that. He said he was from Toronto. The first account that the usecoin twitter follows is from Toronto also. Maybe a start?

Same thing i'm asking them. We need an exchange that only accepts coins with verified identities of the devs.

So many people in cryptoworld there must be some good hackers that can track down his ID :) Hunt this MOFO and provide us with details. I will teach him personally.

Takeover for the dev to dump again?  Just forget about this and move onto next coin.

Coins dead, we got scammed, I lost a lot as I was fully behind the dev. Lesson learned.


I for one will never invest in an ipo again unless the following conditions are met.

Exchange does the ipo.
50% of presale goes to buy support.
Remaining 50% gets paid to the developer monthly over 6months.
Coins to be destroyed by the exchange before the coin goes live.

I'm done promoting coins now unless those conditions are met.

You ppl ignored me when I posted saying that's a joke of a coin, and that's not a dev, he posted a freaking print screen from OpenBazaar

Ok if you read these 5 posts on the usecoin thread you can see they kept claiming they planned to destroy the coins.  In the last one they claimed they were going to get bittrex to destroy the coins for them.  

 #857 / 912 / 995 / 1016  / 1079

Now bittrex do you even read the threads for the coins you list you fucking shitbags?  They used your name and said you were going to destroy the 3.5 million coin.  If I was bittrex I would have at least warned people about the fact that 3.5 million coins were never given to bittrex for destruction.  

You and me both trusted the dev. On c-cex. I will hunt his ass down and I will show you all what I do to him. Man...

Just read about this after looking at the top 3 volume coins on Bittrex, what a way to get close to $14,000 & crash the market resulting in killing the coin..... I said this before but seems that's the trend these days for Greedy Devs, Time to go back to basics.

I also see a 14BTC sell popping up on BTCD Markets on Bittrex and has been for sometime, Do your research Because I think it will personally go Bust any minute now, as if that much is being handled at any given time by once person/lister than the market if very unsafe !

Also You do know you can Buy & Sell to yourself on Bittrex creating fake volume...

Honestly though this isn't bittrex fault.  If you had been following the usecoin thread you wouldn't have put up a buy order for this coin at all till the coins were verified as destroyed.  Golf clap to the dev.  He pulled off a new scam grats him.  BTW he never did PoD.

It's bittrex fault for listing shitcoins, and helping all those scammers in a way.
Don't freaking list a coin if the dev have that many coins.

80% of this is bittrex fault from my point of view

find someone to blame.thats the logic here.

True, but serious exchange as bittrex should have looked into if the dev destroyed the coins or not before adding it.

If you start on page 41 of the usecoin thread and read just the posts the dev was making for 5 or 6 pages it was clear he was stalling to keep those coins.  He planned this.  He executed this perfectly.  People wanted to get took.  If they ignored those warning signs in the devs posts they clearly wanted to lose money.

I am glad that sold all on c-cex when price was still high.  ;D

My apologies to all who are at loss  :-\

Halcyon [HAL] just got dumped on too ! this is very peculiar don't you think ? !

Some of you Nostradamus niggas point the "warning signs" AFTER the fact. Very valuable guys

 :o ooh noo they dideen't

That's not what I was getting at.  I wasn't following this coin.  I generally ignore all IPO coins.  I just read it for the first time when I made that post about reading page 41 to 47 ish.  I was saying if someone had a buy order up and ignored what was going on in the usecoin thread they deserved what they got.  I wasn't pretending to predict this scam after the fact.  I had no clue what was going on until 45 mins ago when I saw it getting dumped.

THIS COIN IS DEAD ALREADY!

At the risk of sounding like an idiot, why doesn't someone use the block explorer to find out where those coins actually went? Bittrex claims they never received the coins, but then again like some people have pointed out, destroying the unsold IPO should have been the very first requirement to getting listed.

 
Re: [ANN][USE] UseCoin » X13 | 10+ Ghash | BITTREX | 3.5mil USE will be DESTROYED

August 22, 2014, 01:58:47 AM

post #1079
 
Remaining IPO coins should be destroyed within the next 24-48 hours. We have decided to get Bittrex to destroy coins for us as a trustworthy entity.

This was where I stopped reading.  The thread.  24 to 48 hours.  Why not at that moment?  Logic went out the window at that point.  Anyone who read this and was invested in the coin should have asked why would he wait instead of doing it now?

Wow he made like about 20 BTC with that.. i'm starting to wonder why bittrex doesn't have some sort of "withdrawal-stop" if the amount of the (new) account is bigger than X btc ...

Damn.. i lost about 0.2 btc from renting hash for that coin...

Too simple  - <controversial>and they wouldn't be able to host any more scams if they started doing that</controversial>

Not entirely Bittrex's fault, but they DO bear some responsibility for ICOs they host.

The need to step up to the plate and put an end to this crap.

Mmh.. Personally I still don't think it's really bittrex as those scams happen on c-cex also, the funny thing is when a coin hits c-cex it dies instantly, on bittrex at least it has a chance :)

But the community is right, bittrex HAS to do some sort of (minimal) security feature (as described above) now finally or they'll lose rep totally.. I see that too..

BTW Now would be a good opportunity to list RipOffCoin @ Bittrex finally...

I was blaming bittrex partly for this one.  After reading through that usecoin thread though all I think bittrex was guilt of was being lazy.  Had they read post #1079 I am guessing they would have warned people, force him to hand the coins over, or shut down the market.  I think they just weren't really informed themselves.

My problem is that several people spoke to Bittrex admins before this happened - asking about the 3.5 million coins. So they were aware this was a potential problem, yet still did FA about it. It's not good enough for one of the largest crypto trading platforms. If it's totally unexpected, and they had no knowledge of any of this then it's unfair to blame them. But when they were forewarned, and still did nothing, it's just bad. People will start to trade elsewhere eventually.

Well if that is the case they should have issued a warning on the market.

I haven't followed the coin very closely and didn't invest in it, but did they actually host it? I thought the ico ran outside of bittrex?

But I do think if they agreed to destroy the coins, they shouldn't have listed it on the exchange until the coins were actually destroyed. Not a biggie to wait a day or two before listing a new coin.

There is no guarantee that it would have mattered, as a dump could have occurred on baby-sized exchanges like c-cex and such... but it would have been less painful.

A very basic security feature, as every scam dev makes new <bittrex> accounts:

Limit the maximum withdrawal issue for those new accounts to 1 BTC per hour..

This way no scammer can scam for more than 1 btc .. which would make them walk away from bittrex at least.

The Dev here scammed for 20 BTC in a matter of minutes.. Its totally freakin' unbelievable that you (bittrex) allow someone to withdraw more than 20k USD (in btc) in a matter of minutes..

In EVERY security/fraud detection system of the world this transactions would raise like ALL the freakin' red flags of the world...  

What's to stop the dev from making several new accounts a month or more before they plan to run a scam? 

And making 20btc on a sale isn't exactly impossible for regular traders, so blocking them from withdrawing their funds probably wouldn't go over so well.

i'm speaking for NEW accounts..

and if one dude makes 20 accs to scam from .. another fraud detection system should raise red flags .. one IP in multiple accounts... even paypal does that :)

Long time lurker here. I must say I'm disgusted by the amount of scams going on lately. I will offer to track down this dev and provide their personal info to whoever wants it. I have been working for years in network security so this will be no problem for me. If you want this dev tracked down, send 1 btc to the address in sig. Also send me a pm with the transaction i.d. so I can confirm. 1 btc per request. By sending the btc you acknowledge you are receiving information from an anonymous third party and this party will not be held liable for any wrongdoings against the person for which the info they are providing. 1 btc per request.

Trivial to circumvent, and in this particular case completely ineffective.  The account was created 2014-06-04.

We did not host this ICO.

I understood you meant new accounts, I was just wondering how that would necessarily matter, if a dev could just make multiple accounts, or even just one account a month or more earlier.

I do agree there should be an ip block on multiple accounts, or let's say no more than 2-3. There could be valid reasons for needing more than one account, such as a person's email going down, or some weirdness like that. Again, not sure how that would necessarily stop a dev from scamming if all he needed is one account a month or so old.

You'll be reporting and providing information to relevant authorities?

Or do you just plan to skate by completely on this scam, like you do with all the others that involve your site?

Some guys cry tonight

The cryptoworld needs a CP team. CryptoPolice. A team of highly skilled people that are trusted and can easily track down scammers. They have to be so good that a scammer would think twice before even trying to rip off others. We need to put up a kind of fund for donations to this team if necessary. Something needs to be done. This is getting out of hand.

I didn't lose much but I would love to get my hands on this guy :) He would never ever be able to type again.

173.34.203.191 :)

Can't, a good number of our best traders use TOR for various reasons of their own.  If we banned TOR we would have a significant an influential portion of our user base out for blood.

CryptoPolice?  :Dlol


The trust to bittrex is lost

Although you did not host it, if you agreed to destroy coins, you shouldn't have listed it until the coins were actually destroyed. Common sense should have told you that there was a danger to having such a large premine sitting out there... and was there any real harm waiting 24-48 hours before listing the coin? Not like c-cex would eat up all of the trading profits going on. They aren't exactly an exchange juggernaut with tons of volume.

You'd think Bittrex would at least have the decency to return transaction fees from this coin, so at the very least they aren't profiting from outright scams.

LOL a scammer posting a scam to find scammers for 1 btc on a scam thread. Send me 1 btc guys and I will tell you who shot Kennedy and where Hoffa is buried.

Except your time line is all wrong.  We were asked to destroy the pre-mine AFTER the coin was already listed.  No good deed goes unpunished.  In the future we will likely not offer our services in destroying coins so as not to get dragged into these scandals.

ip of shameyou  :) 173.34.203.191

Yes you listed the coin with a huge premine lurking.  People brought this to your attention. You did nothing.  Your totally blameless.  Your a fucking cunt.  Get the fuck out of here rami your not helping your case.

Poor innocent little Bittrex.  Collecting fees from scams. 

Maybe if you weren't in such a rush to add every little coin without some proper investigation of what you were getting into people wouldn't "drag you into these scandals".

You involve yourself in them when you list the coins.  No one forces you to add them.

Ah, my mistake then.

I do suggest however if a dev states that a premine will be destroyed -- even if it's not through bittrex -- that the exchange hold off on listing it. The issue isn't that you agreed to destroy the coins. It's that you listed the coin before the premine was destroyed, regardless of who was supposed to destroy it.

Of course if the dev didn't state any premine was to be destroyed until after you listed it, you can't take any blame, as you couldn't have know about it. Again, not sure when it was mentioned or not in the ann thread.

Canada... hmmm

I keep seeing ipo and ico. What's the difference?

too many scam happen on bittrex recently, see: NJA,CLN,USB,ICB,USE,DRKC......etc.  u guys sure Bittrex are not part of these scams. only got fees from these scams.

what a joke

None really, just interchangeable terms. Same thing with ICD too.

Just depends on what an exchange or dev decides to call their ipo.

IPO host by coin devs, ICO host by exchange.

This +1

http://s13.postimg.org/nwan0drhz/Capture.png

oн пo-пpeжнeмy в Интepнeтe люди

173.34.203.191  :)

Bittrex will disconnect a coin soon and will tell you good-bye

It is not Bittrex fault, all scam coins started all in C-cex and ends up in Bittrex ::)

The problem is there is no barrier to overcome to get listed on an exchange,just a few tweets,a few words in IRC etc and you're on.

Devs should need to prove themselves,and be willing to go the extra mile to do so if they want to be listed on a good exchange,there should be some minimum standards in place to filter the crap,it's not a complete solution but it's a start.

forget it guys !  8)

USEMARKET LAUNCH COUNTDOWN: http://bit.ly/1mxLPeA  ;D

I'm thinking about it everytime!
Bittrex is involved!

http://s13.postimg.org/nwan0drhz/Capture.png

oн пo-пpeжнeмy в Интepнeтe люди

173.34.203.191  :)

I'm wondering who is buying it now !  :o

Made about 40,000 USD.

Something the major exchanges could do, but expect they won't, is use some sort of minimal standards before listing any ipo/ico/icd coins, even if they didn't run the ipo through an exchange.

It could be something basic, like that pod or coinssource trust rating + code review. If there are lurking premines, the coins won't be listed until the premines are destroyed.

Note that I don't say to do this for every single coin listed, as that would be a lot of manpower, and financially it may not make sense ... as if bittrex doesn't list a new coin, someone else will. But even though there seems to be a lot of ipo coins out there lately, there aren't so many that this isn't feasible. IPO coins naturally hold a higher risk than the standard coin, due to the devs receiving funds upfront. So it's not unreasonable if exchanges hold them to a higher standard.

http://s13.postimg.org/nwan0drhz/Capture.png

oн пo-пpeжнeмy в Интepнeтe люди

173.34.203.191  :)

English pls. Ppl don`t understand you)

it st`ill onlin`e

Usemarket community takeover incoming!

http://www.timeanddate.com/countdown/generic?iso=20140824T00&p0=250&fg2=000&msg=UseMarket+Launch&csz=1 (http://www.timeanddate.com/countdown/generic?iso=20140824T00&p0=250&fg2=000&msg=UseMarket+Launch&csz=1)

There are always community takeovers, it usually only lessens the investors loss by a small percentage.

Dude, this is a joke

ah woosh on my part. :D

Shame on you ShameOnYou  :D

UseCoin to UseDcoin in less than 24hrs.

Not bad. This is truly the age of the pre-dumped coin. I guess Bittrex had no qualms about releasing the BTC. And the rest of us can go hang. So I dumped the rest of my alt holdings and pulled out. Got burned with syscoin as well (the one with the dysfunctional wallets). Moolah held on to the IPO so the devs are having to bodge up something that works. But I've had it with alts for now. Perhaps there's good reason for regulation and fiat.

Maybe it's time for a forum thread devoted exclusively to scamcoins, their developers, and their supporters... with bounties for whistleblowers (held in escrow of course).

just wake up and found out that use turn to be scam.
the price pretty fluctuating since day one make so easy to sell high and rebuy very cheap over and over again.
just glad that i manage sold almost 85% of my coins i had yesterday when hit 3500.
good luck to all other holders then.

Bittrex should shoulder some blame for listing a coin with a giant premine that was never destroyed, but they didn't host the ICO. There was no btc for them to release, as all the ipo money was already received outside of bittrex.

Sad story... but real coins, with real DEV like Ethancoin are just being ignored by Bittrex (and other exchanges). It looks like you need to be a scam coin to hit a exchange.

Rules for hitting a exchange:

1. Create hype by fake volume on smaller exchange
2. Get added on Bittrex
3. Dump all your coins
4. Lock your BCT thread
5. SCAM

But it should be more like:

1. Work on your coin
2. Try to bring something new
3. Don't lock your BTC thread
4. Get listed on Bittrex.

But as i said lately... it all depends on hype. Ethancoin is for example a coin that don't create fake volume, no hype, no nothing. But REAL pictures on their website of the team, etc.

Scam Developers have now shifted to IPO/ICO coins.

PoD was not done in the case? and how come it got listed on bittrex without PoD?

oн вepнyлcя y мeня ecть имя тeлeфoнa aдpec
shameyou come back me have shameyou name pone numbr aderss  :)

So these weren't the 'supposedly destroyed' surplus coins being dumped on Bittrex? Where were they dumped then? Because the price dropped from 3K to 150 in a couple of minutes as 1.5 million coins were sold. Too fast for most traders to notice what was happening. They weren't listed but somebody must know where they came from... and where the BTC went. And it might not have broken any rules, but it left behind a lot of very cross victims.

Nothing can be done.

Whats his phone no and address? How did you get it? ::) Can you PM me?

I'm sure that all those BTC can be traced back to the receiver. And as it's in the blockchain, it might be a start to look there.

Anybody noticed a massive withdrawal from Bittrex this afternoon?

I was just clarifying the fact there wasn't btc from the ipo for bittrex to release.

As for the dump, the only thing bittrex could have done was lock that account/stop trading. By the sound of things, it occurred really quickly there, so maybe they didn't have time, even if they saw it.

But the BTC remained in a Bittrex account until they were withdrawn (if they have indeed been withdrawn). And Somebody has to make a withdrawal request, and then confirm it by email. Bittrex may not know the identity, but the surely knew which account was responsible for a 20 megaton dump... after they'd agreed to burn the surplus coin. And they had (or have) to agree the release of the spoils.

Is there any exchange that check coin before add it to exchange?

cooбщeниe тeлeфoн пocлe oбpaтнoгo oтcчeтa, ecли нe usemarket нe выcвoбoждaют
i pos efter dedline if market no relese

http://www.timeanddate.com/countdown/generic?iso=20140824T00&p0=250&fg2=000&msg=UseMarket+Launch&csz=1

They must know the account that made the dump + withdrawal, of course. But it's all automated. I mean, you go and sell a coin, go to withdraw btc, all you have to do is click on your email to confirm. 2 seconds later and it's on it's way.

It's not like bittrex sits there and verifies withdrawals by hand. So I'm not entirely sure what they could have done, unless there was some 'dump' check code in place to stop trading beforehand, or something similar.

Canadian cable company is Rogers.

Something along the lines of triggering alerts for unusual deposits/withdrawals... placing limits on trades so that a wallet holding more than the entire 24hr volume can't nuke the entire platform... freezing the accounts of rogue traders...

I'm sure there's plenty of other safeguards available..

and it can all be automated.

Implying that Bittrex is not in on the scam ...

Those aren't bad ideas, but someone from bittrex would need to say if their system has any safeguards in place or not. Obviously they didn't safeguard against what occurred here just now. I assume some of the exchanges have 'dump' check code, or at least hope they do... I think poloniex may. Several times I recall coins being frozen there due to suspicious activity. Or perhaps poloniex just likes to freeze coins randomly...

But yeah, they could put some code in there to help things a bit. And they shouldn't have listed the coin to begin with due to the premine. Hopefully they learn from this and go beyond simply saying they wont agree to destroy coins in the future.

Country:   Canada
State/Region:   Ontario
City:   Richmond Hill
Latitude:   43.8759
Longitude:   -79.4381


Little info regarding this scammers location.

why? what did you do?

At the end of the day it's up to the exchanges to moderate their business if they want to survive. Small investors are being driven away from alts by the rapacious greed of a minority (which is why fiat is so heavily regulated). So volumes are shrinking, profits are falling... and the big cats are being left to devour each other. I know that I can't afford to buy Any altcoin because it's value can be wiped out in an instant. The alternative is to play the same game and dump on a regular basis to mitigate losses and preserve profits. And if everybody does that the whole system will fall apart.

At the moment there is No safe coin to hold long term. Lite Dark Crypt Cloak and dozens of others have amply demonstrated the fact this week. BTC is no safe haven, but the sheer volume makes it a fairly secure long term investment for disposable income. The rest are as secure as the next organised dump.

Iam out. Soon to be 1 Satoshi :(

Thanks to share

Daaaamnnn I'll turn on the news then ;)

How you found out?

sure he will not release it. Publish all you know

LET THE HUNT BEGIN  ;D

If somebody lived there you could just go by and look for the 20 - 35 computer guy (or ask around) and woops you'd have the name. Or, you know, call the police.

IP is 173.34.203.191
Use an IP locator and you will find this info. But it is not enough. We need to track the phone number, fb page, etc and match the puzzle together. Get me his ID and address and I will book a return flight to Canada next week!

these coordinates lead to some kinda church
https://www.google.com/maps/@43.875856,-79.438391,3a,75y,46.46h,106.7t/data=!3m4!1e1!3m2!1sZ-FgjT9Sxt5jtOieSjPKLw!2e0?hl=en (https://www.google.com/maps/@43.875856,-79.438391,3a,75y,46.46h,106.7t/data=!3m4!1e1!3m2!1sZ-FgjT9Sxt5jtOieSjPKLw!2e0?hl=en)

I doubt he lives there.  Where did you get these coordinates?

And what the hell are you guys going to do? Prank call him? Grow up.

Find someone in living in the area and send him by to look at the adress. Or we could just crowd source a private investigator. I throw in 0.3 btc and if we get five more people that would be enough to pay and send someone there. Shouldn't be to hard to ask around until you find "the computer guy". Anyhow how do you guys know its the devs ip?

For one he commited a felony which could get him into jail? Or you could just stop by to say hi. Canadian who got scammed could just go to the police and lead them investigate if they could convey the concept of altcoins to them.

A felony? You think there is some magic crypto-currency police?

Just stop, it is a dangerous game you are playing. He held up his end of the bargain and released his coins as promised. Yes we all lost, but that is the deal here. Don;t want to get scammed, stay out of this game.

Has anyone ever been caught here on this forum for fraud and went to jail? If none, this kind of scamming will continue. Be careful next time before you invest your hard earned money guys.

+1

Those are not exact long and lat.

Dangerous for whom?

No, but there is a, you know ... police? He didn't held his bargain, he lied multiply times and decieved people (IPO destroyed, market under way) which I am pretty sure falls under the definition of fraud. But hey the beauty is; we don't really have to figure that out, somebody can just go the police, make an report and then they'll figure it out. I have a Canadian friend who will just do that on monday so we'll see how this plays out. They have also greater means to figure out who the IP belongs too. Might get the ball rolling or not, we'll see.

Not sure why you are being so defensive of the dev and people defrauding other people. Pretty sure claiming to have an market to be released when it didn't exist counts as fraud. It takes like an hour to make an report so it's not like its great effort and the police has to every report. So in worst case they don't find nothing and in best case the find the dev and maybe even charge him. Whats there to lose except a little time?

Go for it. Make your report while the developer blows our 40 grand on women and booze. :D

I am not doing anything. I am German. Didn't even lose money on it. Just know a guy who is canadian and lost a bit. Oh well, we will see. Could be fun!

Tough questions and critical thinking (page 2 of the damn UseCoin thread):

scam coin = dog

Lol. That is all. Got a wind of this one, didn't touch it. Looks like it was the right call to make.

Post his IP address, location...etc on facebook offering a bounty to anyone that can find his real name, address...etc

Should scare the shit out of him :)

Are you sure?
is it true??

What are you going to do? Be internet tough guy and waste your energy while the scammer is partying with your investment? Nothing will happen, this game has been played over and over and over and over and over and nothing ever happens.

You want to kill this guy?

So far no dev has been so stupid to leave his IP. If its his IP.

I have a feeling it was loljosh behind this.

I have a feeling loljosh is behind almost every coin  ;D

 Other / Announcements (Altcoins) / Re: [ANN][USE] UseCoin » FREE COINS | IPO Escrow Phase 1 ends in 12h | PoW in 12 hrs    on: August 19, 2014, 04:07:11 PM
I'm not trying to FUD, but I found something interesting between this dev and clustercoin's dev.
clustercoin's dev: https://bitcointalk.org/index.php?action=profile;u=133160;sa=showPosts;start=0

usecoin dev once stopped posting at December 10, 2013, 08:43:38 AM and came back on May 21, 2014, 06:49:29 PM
clustercoin dev: December 15, 2013, 12:20:34 AM (during January, he posted 4 times) and then posted again on  May 22, 2014, 07:54:42 PM
Actually, what makes me doubt is that they posted in the same pattern-----giveaway threads, nothing about technique...  I know some guys doing this kind of things. They spam the thread to upgrade the account and then sell it.
Maybe I'm wrong and it's just coincidence.
But I really wonder how can people who never talk about true stuff develop an innovative coin?



I posted above on 19th.
I invested in ico phase before I found these. I even contacted the escrow for refund but failed. Then use dev delivered a good website and smooth launch. I was also deceived. I'm lucky cause before he announced I sold all of my coins. Sorry guys.

sold at 3499 sat last night
and buy back now
lets see

I am impressed the dev pumped a coin that did absolutley nothing up over 300 sats, just seems fucking impossible.

Interesting find.

Just put essex343 and shameonyou into google and shit bricks.
Little examples:
https://bitcointalk.org/index.php?topic=244996.10
https://bitcointalk.org/index.php?topic=683158.20

What I don't get is, that noone checked the code of Clustercoin on github.
People really deserve to get scammed, only problem is, that they can't lose their money to me at trading then. >:(

I'm not invested in both coins, just wanted to have a good laugh here  :)

Cluster Coin RED ALERT!

Exit while you can ;D same pattern with USECoin, except bittrex holds ico funds.

sure you're not one of the fake "devs" in question? Seem pretty defensive over a scumbag thief. He gets whatever gets sent his way. I think a few people are digging up identity info on this guy/guys. It's about time an example gets made out of one of these low life's.

You might be right, usecoin dev posted once (long ago) in a thread about selling accounts.

was a crazy day yesterday. well coin is officially dead.

Crypto is dead, go get a day job instead;
Crypto is dead, go get a day job instead;
Crypto is dead, go get a day job instead.

why you guys still invest in ipo/ico? for easy money to dump on someone else? those shit are all scam, the fact that you can't learn is beyond me

people invest in ipo for a quick buck plus some ipos do be legit the others scam.

1/10 IPOs are actually legit.

usecoin=clustercoin 

All scam

usually the first one after a long series, the rest are 100% scam

Seriously though, everything is just turning into a scam it's unbelievable. If ethereum turns out to be a scam (which it probably is) that might just be enough to actually end crypto for good.

Go to cloak ;)

LMAO
20 Million Dollars of BTC pumped into a vapourcoin. I lost the price of a night at the pub on UseD... but this is priceless.

Its more like 1/100. If You want serious investment, go with well estabilished coin. Profit may be big in long term and its almost risk free. Every novaday IPO is scam, mostly run by same ppl with different BCT accounts. Greed combined with stupidity won´t make You rich, especially not in crypto.

There are many well known ppl behind Ethereum, so I don´t believe its a scam. But there still can something go wrong badly.

Exactly. Why people blindly trust these IPOs I truly do not know.

On the subject of UseD... it occurs to me that they had a website which must have been hosted... and paid for... probably in fiat. A few bribes might jog a few memories. Perhaps a reward fund for information leading to the discovery of the perpetrators (I'm sure Moolah would handle the excrow to guarantee honesty). All information to be delivered to the appropriate authorities, of course.

BTW an anyone confirm the transfer of the proceeds from Bittrex? I'm not much good with block explorers. Shouldn't be too hard, unless the coins are being siphoned off slowly to avoid scrutiny... in which case Bittrex still have time to launch an investigation.

Lets see
Emails
BitcoinForum
Pools
CCEx
Bittrex
Web hosting
Escrow
Maidak will be escrowing the IPO/Pre-sale for UseCoin, see instructions below!
ip addresses

there must be enough breadcrumbs to follow.

true
xcloud is legit

people still buying lol the coin will see 10sats. its useless. bring on the next scam coin

I had an cruel experience with this currency as well, glad that this thread exist.

so when usecoin de listing this

could you check   essex343   https://bitcointalk.org/index.php?action=profile;u=133160  this guy's IP, tks

No, none of that will work. Servers can be purchased with BTC, IP addresses can be masked behind VPN's and botnets. You would totally be wasting energy for NOTHING. I seriously doubt any real crime has been committed and that no authority would even take on the case. Why? You are trading a non-regulated currency system on an exchange where the TOS state no one is responsible for your money except yourself.

Seriously, I'm out around .12 BTC roughly a tank of gas on this scam. I can afford that, having invested in other coins and made money on the IPO upswing. I would have made .3 or .4 BTC on this upswing had I set my sell orders a little bit lower. Greed struck me this time. My sells were at 4000 sat, setting them to 3500 or so would have gotten me out and put some BTC in my wallet. Lesson learned.

Tell it to silk road. These altcoin scams are becoming more frequent and audacious, so they're bound to attract the attention of the authorities. They're enacted with the tacit cooperation of Exchanges and other online service providers, who are vulnerable to having their premises raided, their servers seized, their businesses disrupted, and their clients financially  inconvenienced. Thgey're no longer sole traders or small gangs operating independently behind a wall of pseudo-anonymity.

Take Syscoin, for example. I had my fingers slightly singed when trading opened on Mintpal, but I managed to bail out with most of my funds intact. Many others have lost substantial amounts. The coin was released with a laughably dysfunctional wallet, by any altcoin standards, because the developers had no intention of delivering a working product. Moolah handled the escrow, and the developers claimed to have returned the released funds. So now Moolah are holding the spoils and the developers are screaming that they need the funds to deliver a working product. Moolah have offered their support in this endeavour, and meanwhile the price has tanked and the volume has dried up. Mintpal supported the release, and they've taken a big hit on volume as a consequence. Moolah operate out of London as a legitimate financial services provider. So if the Serious Fraud Office come knocking on their doors demanding to know the whereabouts of the 'Devs' and the escrowed funds, Moolah will turn them in without batting an eye.

In the meanwhile the 'investors' are growing more angry because the escrowed funds are neither being returned nor used to develop a working coin. And the whole sorry tale is documented in the pages of Bitcoin Forum. You may think it's all a storm in a teacup, and the 'devs' broke no laws. But people are being conned to the tune of tens of millions of dollars, which makes it a matter for the authorities; and investigations could destroy the whole altcoin scene, by targeting the exchanges. Shouldn't surprise me if one or two of the big players are MtGoxed before the end of the year if this continues.

Of course the best time to begin investigating these scams is when the coins are first announced, and the 'devs' are active online. So mark my words, there are fun times ahead.

Ethereum isn't a scam - the problem is that their ICO isn't structured like an investment where you can expect much of an ROI. It's set up more like a donation.

You mean a registered charity? Because it's illegal to solicit donations without being a registered charity.

Well, they're set up like a non-profit foundation, no? And they have good lawyers - they've made it look like an ICO (and sound like one), when the reality of how it's set up makes it a virtual donation.

No BTC's too big to go down with the alts. But the alts are dead without the exchanges.

BTC has been quite weak all year - perhaps in anticipation of this. It will certainly be devastating to the alts world if it happens.
This is a scary - and plausible - scenario. And we're all collectively to blame. We had a chance to make the most of a true free market (one of the few left in this world) and really botched it.

the scam could have been easily caught out if bittrex was online. i think the problem here was that we were misunderstanding that the coins had been destroyed. we should have cleared that first before the ipo being released. we just need to make sure the next ipo we need to make sure that any remaining coins are destroyed. i think dev got greedy because he saw the coins were worth shit loads

A non-profit foundation is a charity if it solicits donations. And charities have to be registered as such.
Looking at their website, they're raising funds by selling a coin like any other, based on a new technology. Whether that technology is delivered or not remains to be seen. If it is genuine then it will be traded with the same risks as any other coin. But scam IPOs could still damage the success of it's launch. I'm surprised that major platforms like Cryptsy and Mintpal are even touching these anonymous IPOs. They should be left to flounder in the marginal exchanges. But then Mintpal and Cryptsy have lost 75% of their volumes in the last few months. Still taking around $125,000 dollars a day each though. Which is reason enough to exercise restraint and due diligence before accepting coins on their platforms.

Bittrex should have been aware of the volume of Use being deposited to their exchange. It wasn't an insignificant amount. They should also have launched an investigation before releasing the BTC (if they have indeed been released). And for better or worse they still have a lot of documentation that could be used to trace the scammers. They also have the wallet addresses for the withdrawal of the scammed funds. So Bittrex might have been caught napping, but they also chose to nothing for the protection of their clients.
I shan't be back.

That's why we have regulation. People who resent government, regulation, and the police don't do so because they support anarchy. It's because they want to impose rules that work to their own personal advantage. In the 'alt' world freedom has come to mean being free to prey on the weakest and least advantaged.

Only said the first part not the second.

i do agree i found it really suspicious they were sleeping while dev was dumping. what timing. someone was saying it was looking like a scam the day before but he got bullied for being a fudder

i actually made money on it but lost money buying at 600sats thought it was fud. lost the profit. luckily no capital. feel sorry for others

It seems there's almost always some little detail that is missed or swept under the rug until after the launch, whether it's usecoin, clstr, sys, storj, etc.
Most people aren't motivated to scrutinise until there's an immediate interest in doing so, or are simply blinded by the potential upside until it's too late.

Wasn't involved in this mess, thank goodness, but amid a growing number of questions about the extent of Bittrex's involvement in these failed ICOs, I'm curious, came across this Bittrex message from earlier this year and asked the following question.



Looking forward to Bittrex's answer.

Bittrex obviously has been offering ICOs on their exchange, basically as a form of escrow. That would be the logical answer.

Usecoin was not one of them, by the way.

You know this how? Did Bittrex not undertake the initial distribution of the pre-sold coins?

So Bittrex had a million and a half unsold use sat in a trading account on the day of the launch and nobody thought to ask why?
The hole just got deeper. I strongly advise you to stop digging. Perhaps a little due diligence would be in order.

I am saying that Bittrex did not offer escrow on the coin, so it wasn't one of their ICOs. That is all I am saying. And I know this as it's obvious how the IPO was set up.

Bittrex listed the coin on their exchange for trading before they should have. That is where they are guilty.

Which still doesn't answer the question of how a million and a half unsold coins wound up in a trading account on the day of the launch. Or why the developer should have claimed that Bittrex had agreed to destroy those coins. If they were held for destruction then why were they held in a trading account?
Can of worms anybody?

I do not know if Bittrex had even been given the coins to destroy yet. If so, they would have typically went to a locked account that Bittrex was in charge of. They stated they agreed to destroy the coins as a courtesy, which after this debacle, they no longer will extend.

If the coins weren't sent to be destroyed yet, which is what I assume,  all the dev had to to was use a regular account, send the coins there, and sell them like any regular investor. All people had was the word of the dev that the coins were to be destroyed. I am not aware of any proof that they were held anywhere safely.

So the dev opens a regular account on the day of the launch, deposits a million and a half coins, out of five million total (just less than a third of the ipo), and nobody at Bittrex bats an eye. This must be a landmark in the history of due diligence. Are there any more surplus coins lurking in Bittrex accounts waiting to drop on unsuspecting punters? There's one ipo (neoscoin) trading even though the wallet's not due 'til September. That should be a laff.

Apparently so. If their system has no safeguards in the code for sneaky behavior, it's not necessarily unexpected that something like this could occur. They don't just sit there and watch every transaction manually.

It probably would have been a lot safer if the coin was a Bittrex ico, as I assume the dev wouldn't have been paid until the premine was destroyed, and it'd be more likely it'd be under Bittrex control the entire time. They really shouldn't have offered to destroy coins for an ico/ipo not under their control. Nor even list the coin for trading until the premine was destroyed, which was their main mistake.

I realize people here look at Bittrex as a key culprit, but in many ways they are sort of bystanders involved due to negligence (in my opinion). They should take blame, but in the end, people would have been cheated regardless.

If Bittrex didn't list the coin, the dev would have dumped on c-cex and any other exchanges that took the coin. And even if he didn't dump, he obviously had no plans to develop the coin, so he would walk away sooner or later... resulting in a crash as well. People were doomed regardless, just with the premine dump, it came sooner rather than later.

Trust me I have been following a group of scams.

The work of this coin is also involved in Burstcoin and crypti.

Yes, just looking through the list of recent Bittrex launches, a lacklustre string of pump and dump, now giving way to the pre-dumped. It's like a factory churning out new coins, wringing out every ounce of value from eager punters, then ditching the worthless remains. Fifteen pages of (mostly) shitcoins.

Do you wonder that I have grave doubts about the future of these exchanges, and altcoins? The writing's on the wall, and the exchanges need to up their game. Codes of conduct, complaints procedures, and a self-regulating trade association. Before the FBI step in and call the shots.

Bittrex should make changes to their ICO model, but haven't shown any inclination to do so as of yet. The reason being... people are still buying the things. They should institute stronger rules for all ICO coins, require dev identification and hold funds until they are used for what they are supposed to be used for, with a full ledger.

Again, it comes down to money. I expect they are hesitant to do this, with the idea that other exchanges will then eat up all the trading fees. Although right now it appears only c-cex is embracing the ico model, so not so sure they have much to worry about.

I'm sort of surprised people paid into usecoin to begin with, to be honest. I looked at it briefly, signed up for the freebie coins, then passed on it as it looked too sketchy. A minimal requirement for any ico should at least be some form of dev identification, be it pod or coinssource's trust rating, through an exchange checking ID, or just announcing who they are. At least that should be the min. requirement folks should use when thinking about investing in any ipos.

It should be the minimum for any coin, not just IPOs. And it's pointless claiming that nobody wants That. At the current level of fraud it won't be long before exchanges find themselves being targeted for investigation by the authorities. And if they decide on criminal investigation, then it's warrents search and siezure... which will effectively destroy the alts.

My point about a trade association is that members will abide by a common code of conduct. Which will do away with the objection that those adopting the code will lose out. If the major players adopt common codes then the scamcoins can be marginalised to the rogue exchanges. And legitimate coins will have greater freedom to flourish. Good practice by consensus and mutual agreement is the way forward. It's been an essential component of commerce throughout history. Even the Mafia owes it's success to that model.

I don't see it happening for all coins. People can also claim they want regulation, but if they truly did, they wouldn't be investing in so many shadier coins to begin with.

People are generally fine with scams/shady coins and such... if they make money. If they get cheated, then it's a problem and they want regulation.

It does bring up an interesting point though. If an exchange lists a coin where  a dev bails or dumps a premine, are they partaking in any form of fraud necessarily? They aren't the ones committing fraud, and in many cases, it's sort of a gray area if the devs themselves are even breaking any laws.

I look at syscoin and see an obvious scam based on promises that the devs had no intention of keeping. But this time it's hand in glove with major exchange... and a regulated financial services operative left holding a Huge amount of escrow. So Moolah have the problem that if they release the escrow they could be accused of participating in a criminal fraud. The devs are claiming that without the funds they can't continue development of the coin. And the intitial investors are wanting their money back. If this one plays out as I think it will then Moolah will be served with an injunction preventing them from distributing the escrow. Mintpal (a moolah subsidiary) will loose a substantial amount of their already dwindling market, and because of the sums involved the fiasco will proceed to a court case, and possibly a criminal investigation.

Moolah should have returned the funds (I wasn't an investor) as soon as the launch went tits up. It wasn't just misfortune. The original wallet was an obsolete buggy version of litecoin with some extra bolt-on features that didn't work. There was no effort went into the project (unlike many alts launched without IPO) and no more intention for it to succeed than Usecoin. But with millions at stake, it won't just be written off to experience, and the aftershock will rock the whole altcoin community. The claim that the devs need the funds to 'get it right' don't match up with any previous alt.

So there's a very good case for bringing charges of fraud, even if they don't make it to trial. And you might get an answer to your question much sooner than you anticipated.

BTW I wasn't a sys investor. I lost a small amount on the launch and dumped my holdings. But Mintpal have lost half their trading volume since the launch, so I fancy I'm not alone in my assessment. A cold launch might be hard to prove as a scam... but an IPO makes it so much easier.

I haven't followed sys very closely, so can't make any informed comments really. I believe there was no cap in place for the ipo, which scared me away early on.

The problem when we throw around the term 'fraud' is first even defining fraud. If an exchange releases funds to a dev before a working wallet is out, and their terms clearly state they wouldn't do so... then yeah, it seems like fraudulent behavior to me (whether it's a criminal case is another matter).

But the shady areas are where wallets work fine, and the dev provides a working product as claimed. Most of the Bittrex run ICOs didn't fail because the devs didn't release working wallets. More often it was because the devs bailed... they didn't use any of the funds on the coins themselves and in some cases just walked away entirely. People will scream 'scam' and such, but is it fraud on an exchange's part in any way? How could they know a dev would bail beforehand? Even knowing their identities is of limited help (although better than nothing).

Please check this thread!!!
https://bitcointalk.org/index.php?topic=683158.20
 In this thread, you would find two confirmed ico scam dev-USE AND CRYSTAL. One possible scam dev-cluster's.
And several accounts in the same pattern, which created in the same period, stopped. Posting in the same period and active again in the same period.
They all posted in the same giveaway thread, almost nothing about altcoin and technique!!

You're missing the point entirely, that what you and I believe is rapidly becoming immaterial. Syscoin Mintpal and Moolah launched the coin as a partnership. Just google it to find the press releases and videos. The launch was a fiasco, and now Moolah are holding millions of dollars worth of escrow funds. It's no longer a small scale scam.

Moolah are a registered financial services provider, and subject to investigation when there's the merest suggestion of impropriety. They can't hold the funds indefinitely or release them without incurring the wrath of two warring factions. So the scene is set for an investigation that will lead the authorities to the heart of the altcoin world. And unlike the usecoin devs, Moolah and Mintpal can't just up sticks and vanish. But investors can and will disappear as they see their investments about to go up in smoke. Including funds held in exchanges. And if the exchanges go bust then the whole altcoin scene goes up in smoke.

It may sound alarmist, but if Moolah pay the devs the aftershock will be nothing more than spectacular. And nobody now in their right minds will consider buying sys. With Moolah on board and millions at stake, the financial regulators would be derelict in their duty if they failed to investigate. And they are perfectly entitled to call in the fraud squad if there's any suggestion that the product released was not Fit For Purpose. The fraud squad in turn will coordinate their activities US and other foreign authorities. Leaving Moolah and Mintpal struggling to escape the grip of a heavily publicised partnership.
Interesting times ahead.

Well, my point was, for what are commonly referred to as 'scams' here --  devs walking away after a coin is released -- even on an exchange run ico, it may not be considered fraud, at least from a criminal sense. I am using bittex/polo icos as an example there. Even though I believe exchanges should use tighter rules, I do not see how they can be held responsible for what a dev does weeks after a coin is released. That assumes the coin is functioning properly before all btc is paid to the devs.

Sys may be an exception because moolah was so closely tied to the ipo, and of course they now run mintpal. Again, I haven't followed the coin that closely at all, since I have nothing invested there. Have they released a functioning wallet yet? Is the wallet different than described by the ipo terms?  If there are major discrepancies between what they stated they would release and what investors received... yeah, it does sound fraudulent.

NYS may say otherwise. Although the motives behind their proposed regulations may not be to protect investors, exactly.

It'll be to protect Wall Street and the established finance system, obviously.

Moя кoмaндa пoлyчилa пoлнyю инфopмaцию пo этoмy мoшeнник, мы нe пoзвoляют пoкa пятницy для вoзвpaщeния или мы выпycтим.

is someone pumping usecoin why?

This is the smartest thing I've heard in months.
My sentiments exactly. I couldn't have said it better myself.
Although I have been documenting the losses from scams, exchanges, pools etc etc and we're currently sitting at ~$87 million. That's in US dollars. Dollars, as in the regulated currency kind. Tax-free dollars might I add. If anyone honestly believes that this is going unnoticed, you're deluded.

It's highly likely these are serial scammers operating as they use the same MO until it stops working then move onto the next "fad" (ICOs currently) whilst using sophisticated methods of multiple accounts, shill accounts, shill supporters etc etc etc

The worst part of all is I don't see how BCT is going to whether the storm. With no moderation it's complicitly letting all this happen. AltcoinHerald.com shows 87% of monthly coins fail. Why? Because development takes actual work and because this is one of the easiest scams ever known. One Weird Trick ads made $1 billion so far at a 0.0042% success rate. Altcoins have (theoretically) an 87% chance of "winning".

Regulation is imminent and it will follow "an MtGox" and "a SilkRoad" the CryptoVerse can call it's own.

If you disagree, ask Ross Ulbricht (Silk Road creator) how the "crypto-Currency isn't a currency" defence worked out for him. It was the first charge they hit him with and his whole site was dealing drugs.