Whatever reeses says couldnt possibly do more damage than your own tone and attitude, even if you are correct (which FWIW,  I assume to be the case).

And get legal advice.

Since you are in the same boat as a lot of other asset issuers, why not pool some money to get one lawyer? I dont mean to get your money back from GLBSE, but to continue running a bitcoin security.  Giga was getting legal counsel I believe, you  might want to chip in, to get his opinions.

Alternatively, you could save that money and assume its illegal and a bad idea (which is the most likely legal conclusion IMO).

I used to have an older galaxy that wouldnt work with earbuds I already had. Sound was terribly distorted. I think it was an impedance problem, Im not sure, the earbuds of the galaxy would work with all my other devices. With the LG and my newer phones Ive been able to swap earbuds with no problems

Nope, Nefario naively assumed what he was doing was in fact legal. Not that he ever bothered to ask someone who knows the law, until recently at least,  with the predictable result of GLBSE closing immediately.

As for running GLBSE  as a  tor hidden service; Im sure its doable, but if GLBSE was a scammer dream come true, imagine what a Tor based equivalent would be like.

Its funny people keep thinking that because its bitcoin related that its a legal grey area or unregulated.
That bitcoins are used on GLBSE doesnt matter, what does matter is that its an exchange for unregistered securities. Its like silk road, its not because they use bitcoins for payments that its illegal, its the weapons and the drugs. Duh.

updated my post with some actual recommendations.

Sounds like just about any current android phone would do for you, and the vast majority of <2 year old used android phones on ebay.
Forget about the "5Mpx" camera though, I have a 8MP camera thats total crap, and an old 3MP that actually makes quite decent photo's. MP is a useless metric. On mobile phones you have terrible, bad and mediocre camera's, but the pixel density wont tell you which is which. Rule of thumb: just assume its a terrible camera.

Android 2.3.x is still quite decent. Perhaps in the  future it will no longer be able to run the latest software, and you will need 4.x, but for now, it still works absolutely fine.

Anyway, if you want a specific product, perhaps look for a used LG optimus one. Its old, its got a low res screen, but they are well built, nice form factor, great display (aside from its resolution), good battery life and cheap. They are not exactly speed deamons, but will handle lightweight bitcoin clients (bitspinner, mywallet) with ease and SSH should be even less of a problem, although the low screen res will bite you there. Samsung Galaxy Gio and all the small/cheap galaxy's should be a good choice too.

Exactly. Theymos is an anonymous shareholder in an illegal venture. Nefario is fully doxed, the one running the thing and potentially ending up in jail for it. For Theymos to say Nefario should just keep running it to earn cons for him,  while not wanting to expose himself to the legal repercussions  is.. not very fair to put it mildly. Bylaws can never supersede laws and any contract to the contrary is by definition null and void. The whole shareholder contract most likely has no legal value either.

They dont have to understand it. All they need to know is that it has value.


Its not bitcoin thats on trial here. Its unregistered securities. And trading those for bitcoin will have about as much chance in court as trading guns or heroin for bitcoin. Good luck with your "the law doesnt understand bitcoin" defense.

No one said that. All trade of securities however, is indeed regulated, whether you like it or not.

About the same it has to you: market value. But that is not even relevant here. A court might have to decide how much value a bitcoin has, but you stand no chance arguing bitcoins have no value.  If it was that simple, it would long have been abused by trading securities against some other exchange unit thats not fiat. To the law it doesnt matter if you sell securities for dollar, yen, gold, bitcoin, oil, paintings or chicken feed. All that matters is that you do sell them.

You should learn to read; what was said was that unregistered securities were traded for something of value (in casu, bitcoin). And that is enough to make it illegal, these securities dont have to be traded for fiat like you claimed, nor do they have to be denominated in fiat.

edit: for those that missed it:



 The term ‘‘security’’ means any note, stock, treasury
stock, security future, security-based swap, bond, debenture,
evidence of indebtedness, certificate of interest or participation
in any profit-sharing agreement, collateral-trust certificate,
preorganization certificate or subscription, transferable share,
investment contract, voting-trust certificate, certificate of de-
posit for a security, fractional undivided interest in oil, gas, or
other mineral rights, any put, call, straddle, option, or privilege
on any security, certificate of deposit, or group or index of secu-
rities (including any interest therein or based on the value
thereof), or any put, call, straddle, option, or privilege entered
into on a national securities exchange relating to foreign cur-
rency, or, in general, any interest or instrument commonly
known as a ‘‘security’’, or any certificate of interest or partici-
pation in, temporary or interim certificate for, receipt for, guar-
antee of, or warrant or right to subscribe to or purchase, any
of the foregoing.

The term ‘‘sale’’ or ‘‘sell’’ shall include every contract of
sale or disposition of a security or interest in a security, for
value. The term ‘‘offer to sell’’, ‘‘offer for sale’’, or ‘‘offer’’ shall
include every attempt or offer to dispose of, or solicitation of
an offer to buy, a security or interest in a security, for value.

http://www.sec.gov/about/laws/sa33.pdf

The only sensible thing for you to do right now is get legal advice first.
If it turns out Im wrong and what you are doing is legal after all, then so much the better, and nothing except some solvable technical issues should prevent your from running terramining on your own "exchange". But this seems highly unlikely to me, so what you will have to do wont be up to me, and my preference irrelevant, just like my preference for Nefario to continue his exchange is irrelevant if authorities forced him to close.

I agree, and thats why I think people like GigaVPS are in a lot of trouble (particularly since he happens to be American and not anonymous).

Thats not what I read in the securities act of 1933. They have to be traded for value.

(3) The term ‘‘sale’’ or ‘‘sell’’ shall include every contract of
sale or disposition of a security or interest in a security, for
value. The term ‘‘offer to sell’’, ‘‘offer for sale’’, or ‘‘offer’’ shall
include every attempt or offer to dispose of, or solicitation of
an offer to buy, a security or interest in a security, for value.
http://www.sec.gov/about/laws/sa33.pdf

It doesnt mention fiat and good luck making a point for court that bitcoins have no value.

People bought or kept gigamining bonds with the expectation of being able to trade them in for terramining. Had there not been an upgrade path, Im sure they would have traded a lot lower.

However, like I said earlier, I dont think this is your biggest problem right now, nor is GLBSE. You were, I believe, fully authenticated at GLBSE, chances are the SEC will be contacting you about your sales of unregulated securities. That they are denominated in bitcoin rather than dollars, AFAICT  doesnt change a thing, and the potential penalties are severe, including up to 5 years in jail. You can also expect to be forced to refund your bond holders for the full IPO price on top of paying a hefty fine.

You might be a very small fish for the SEC, but if they are going after anyone, it will probably be you, since they would have your ID, you are a US resident and the largest asset issuer on GLBSE. Lawyer up James, you should have done that a long time ago.

You mean, illegal?

I thought he was paying from his mining revenue? If so, those years will become decades and centuries very soon.

This isnt about money laundering.  GLBSE assets are unregistered securities, and a such selling them is illegal - at least in the US.  Securities dont have to be nominated in are traded for fiat. They only need to represent value/debt.

Either way, I dont think you can argue someone would have to break the law to avoid being labeled a scammer. If Nefario does what he  (legally)  can do to return the assets and bitcoins to their  owners, then I fail to see a reason to label him a scammer. Theymos should know better than that, it seems he is just pissed his investment didnt pan out. Tough luck for him, he should have done his own due diligence about the legality of running a security exchange.