Bitcoin Forum

Just looking for some ideas here:

HYPOTHETICALLY How would one go about starting a business that you know may be illegal, and will eventually run afoul of the SEC, without running into legal trouble? Start it using your reputation, build it up to be viable, then give it to an anonymous entity when you start to feel the heat? Start it in an anonymous way and get someone well known to vouch for you?

The best way is to build a business model in which minimal or no trust is required and stay anonymous the entire time.

build it so that it is not very visible and easily ignored (i.e., not in a way that it would require a response from enforcement).  build it so that it does not exist to enrich the founder / central operators but instead any wealth earned is shared among all participants proportionate to the effort (e.g., like a coop),    build it only if it benefits mankind and as such clamping down on it would be politically untenable in the short term and changing the law to accommodate it in the long term becomes a more attractive alternative.

Base it in a country out of the reach of the SEC.

Thanks guys. Great help!

I was thinking of an underground business in The Shire. ;D

The problem with the notion of illegal business is that it's nonsense. The business name for an illegal venture is criminal enterprise.

Exactly.  A criminal enterprise.   Here's one such example:

- http://www.history.com/topics/salt-march

OK, fine, how would one hypothetically start, or more specifically bootstrap, a venture that would be variously called either a business in some countries, or an illegal venture in others? Kinda like how Silk Road is only illegal where drugs are illegal. The issue is that some countries regulate some businesses, others don't, and the Internet, along with Bitcoin, sorta doesn't care about jurisdictions.

I've been asking myself the same question. Speaking of which, if you guys want to invest some money and you don't mind technically breaking the law, you know where to find me.

This forum is really starting to depress me.

Also, "hypothetically" my ass.

As Intrade just found out, there is no such thing.

+1 :(

I guess except Onionland

Lol srsly.

Side note: I need help figuring out how to hypothetically scam someone. Anyone know how to do it? Seems all the successful one aren't around anymore, so I can't ask them.  :o :o :o

FYI, If I was thinking of setting up some business that may or may not be legal, it would not be illegal due to being a scam, it would be illegal due to not following one specific country's regulations on investments and securities. Hypothetically.

You're getting defensive because I indirectly (and hypothetically) called you a scammer.

I'm not getting defensive, because I am not planning on any such businesses. It was all just hypothetical, so I hypothetically got defensive about your hypothetical accusation. It's all good though  ;D

There's no reason that an underground business needs to be a scam. Hypothetically speaking one could start a business which had the effect of lowering its customers' tax liabilities in a way that was lawful (or at least in which any unlawful effect was plausibly deniable). A business like that would do well to be circumspect in its structure and operation.

Well, that's an entirely different story! Take Satoshi Dice: it meets your criteria (or gambling in general, or for that matter selling  drinks, or pork steaks). Take Bitcoin itself: it meets your criteria. Take a free press: it meets your criteria. Pretty much everything in the world is in that situation, of being legal here and illegal there.

In general the age old solution seems to be, move to a jurisdiction that respects your business and stay there.

Well, that was the most obvious and the least practical solution I was already aware of. I was looking for more like https://bitcointalk.org/index.php?topic=128928.msg1375524#msg1375524 , and big props to him for those suggestions.

Well, I think I could have hypothetically gotten offended based on your hypothetical question to start an illegal business (hypothetically).

This could hypothetically been super-illegal, and I hypothetically found it hypothetically necessary to hypothetically discourage you from hypothetically starting a hypothetically illegal business. 

Hypothetically.

Is this a hypothetical business for repeat customers?

Hypothetically you could advertise the shit out of it, then stop advertising, and only sell to repeat customers.

1. Dont start the hypothetical business then use the government to steal the users money or build you a giant mining farm.

SilkRoad, BlackMarket and credit card fraud sites.
Look at what they do and learn.

In many countries breaking the law is a matter of survival or has grown into the culture - by this I mean in varying amounts. Visiting somewhere poor in South America could be useful research. Does any of us have any books on life for pirates in Somalia or opium growers in Afghanistan for example.

Are you into criminology too?

I was into criminal psychology back when I was pursuing my long-abandoned psychology major. Not sure if I still am, though some cases still fascinate me.
Also,"The Pirates of Somalia" by Jay Bahadur is still very much on my need to read list.

I find it very interesting to point out this type of thing, here is my (hypothetical) example:

In real life, I fly around in helicopters, drive mercedes, and wear rolex watches--but hypothetically speaking *if* I didn't have a whole lot of money and tended to drive older cars all the time that still needed to be smog tested and one of my cars failed the emissions tests, it occurred to me that it would actually be a very expensive thing to set "right" and still be 100% legal on.  I believe that you get three "tries" or tests before you are exempt, and if your tabs are expired, that is three tests (which cost money) plus various (also costing) attempts at repair PLUS trip permits you must buy each time you move the vehicle on the road--all assuming that *hypothetically* the vehicle had not been used for a couple years.  Its the government screwing with the small-timer.