I mentioned back on Jan 5th that the terms of service authorize pre-mining of payocoin - not really following today, but thought I'd make this screenshot of the TOS, w/ the pre-mining language highlighted, handy in case there's any question: http://imgur.com/VMIKafgAs I mentioned before 20 or so posts up, the TOS is only relevant to purchases of coins from GAW. The myriad of misrepresentations (concerning "no premining" and that GAW coins will come from mining the 500K coins, again see above) are material to folks who (a) bought hashlets prior to the ICO in reliance on Josh's representations, (b) bought coins in the ICO. The TOS on paybase have nothing to do with those categories of purchasers/investors who could have been misled by Josh's promises. I agree - was making a resource available in case others forgot or new people hadn't seen. Its relevant precisely because of the representations of no pre-mining of paycoin - impacts anybody obtaining them for value notwithstanding where or from whom they're purchased. A clear lie and misrepresentation (including a flip-flop after people materially relied on the original no pre-mining representation in obtaining paycoin) on several levels. |
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I think this scam is running out of legs.. Its gone full circle.. hardware sales-mining-cloud mining- Project Prime- Selling used hardware..  You're a genius. Next GAW plan... wait for it... wireless Internet for Vermont villages! Decentralized taxi service w/ ferraris - pay for it only w/ ferraricoin. ferrari already on board!  |
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I mentioned back on Jan 5th that the terms of service authorize pre-mining of payocoin - not really following today, but thought I'd make this screenshot of the TOS, w/ the pre-mining language highlighted, handy in case there's any question: http://imgur.com/VMIKafg |
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Item location:
Elkridge, Maryland, United States
Probably not. GAW's stuff should be coming from Hattiesburg, MS. Do you actually trust buying an S3 from gaw at his point? lol, not a bad deal if they actually ship as expected.....
They may generate a shipping label tomorrow and may ship it by the end of next week. Good luck with customer support, warranty, or returns. So it's a risk, but as long as you pay via CC it could be an ok deal. Those types of products (physical miners) are great for cc sales - good way to cover paycoin sales. |
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It's all under FEDERAL jurisdiction and everyone gets vetted - trust me. States can have their supporting legislation, but nothing supersedes the FinCEN when it comes to FIAT based securities, which is the bottom line here.
Scott-
FinCEN doesn't regulate securities; you're thinking of the SEC - that's an intense review. FinCEN is about financial crimes, terrorist financing, etc (Western Union employees are not getting the third degree from FinCEN, for example). I took a class on this about two months ago for CLE credit; pretty sure I'm remembering correctly - but I've forgotten things before. EDIT - However, SEC might be involved too for securities issues related to cloud mining contracts, presales/ICO, etc; whereas, FinCEN would be involved with transmitting money. |
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Well, in a nutshell, there is a HUGE difference between simply filing a regulatory application and being vetted and [then] being issued a MSB operating license. In this specific case and at this specific time, PayBase nor any other Garza/GAW owned/operated venture is in compliance with US federal law as it relates to money transmission... Period™
The number referenced is simply their application #.
Likewise, as you mention, there is no evidence any of the Garza/GAW entities plus the numerous DBA's even have a local or state business license or federal TAX ID's (EIN's), which is also required.
Yes, I remember Alex Green (Moolah). I had him pinned 3 weeks after he joined the subreddit (last February/March) and just like that drama fest, this one will have a similar conclusion. At least I received a boatload of apologies from most of his victims after the fact... hope you did too. Regardless, I am not sure we will receive the same respect after this chapter closes. GAW's cult is on a different level than my fellow Shibes.
Scott-
I meant state-level msb licenses. At the federal level, its just registration, which they have - there's no real vetting. the name of the game is the state-level msb licensure. MSB Registration Status Information Date: 01/09/2015 The inclusion of a business on the MSB Registrant Search Web page is not a recommendation, certification of legitimacy, or endorsement of the business by any government agency. The MSB Registrant Search Web page, which is updated on a weekly basis, contains entities that have registered as Money Services Businesses (MSBs) pursuant to the Bank Secrecy Act (BSA) regulations at 31 CFR 1022.380(a)-(f), administered by the Financial Crimes Enforcement Network (FinCEN). Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB. Information provided on this site reflects only what was provided directly to FinCEN. If an error or incomplete information is detected on this site, the registrant should follow the appropriate instructions for correcting a Registration of Money Services Business (RMSB) form. MSB Registration Number: 31000058736200 Registration Type: Initial Registration Legal Name: PayBase, LLC DBA Name: Street Address: 34 East Dudley Town Road City: Bloomfield State: CONNECTICUT Zip: 06002 MSB Activities: Dealer in foreign exchange, Money transmitter States of MSB Activities: Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District Of Columbia, Federated States Of Micronesia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Marshall Islands, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Palau, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virgin Islands, US, Virginia, Washington, West Virginia, Wisconsin, Wyoming All States & Territories & Foreign Flag: All States/Territories Number of Branches: Authorized Signature Date: 12/26/2014 Received Date: 12/29/2014 |
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In case we all forget...from ToS:
4. Certain Risks Associated with HashStakers
4.1 Risk of Regulatory Action. Cryptocurrencies have been the subject of regulatory scrutiny by various regulatory bodies, both in the United States and internationally. HashStakers could by impacted by one or more regulatory inquiries or actions, which could (i) impede or limit the Company’s ability to continue to provide the HashStakers, or (ii) prevent the distribution, sale or use of Paycoin.
4.2 Risk of Theft. Hackers or other groups or organizations may attempt to steal Paycoins staked in Prime Controllers and HashStakers. To account for this risk, the Company has and will continue to implement comprehensive security precautions to safeguard Prime Controllers and HashStakers.
4.3 Risk that Paycoin May Never be Completed or Released. Purchaser understands that, while the Company will make reasonable efforts to complete the Paycoin software, it is possible that an official completed version of Paycoin may not be released and there may never be an operational Paycoin, Prime Controller, or HashStaker.
4.4 Paycoins May Have No Value. Paycoin is a new cryptocurrency and its value is determined by supply and demand. At any point after its release, it is possible that the market price of a Paycoin may be zero. Because the value of Paycoin may be zero, the value of a stake, in Paycoins, from a HashStaker may also be zero.
4.5 No Liquidity. Because HashStakers and Prime Controllers are staking wallets, the Paycoins deposited at a HashStaker address will be locked for a length of time, which may be up to 6 months. During the staking period, Purchaser will not have the ability to withdraw or transfer those Paycoins.
4.6 Volatility. During a staking period, the market value of locked Paycoins may fluctuate dramatically. The value of the deposited Paycoins after the staking period may be less than the value of the Paycoins before they were deposited.
4.7 No Guaranteed Return. Because proof-of-stake networks award new coins based on the size of a stake relative to other stakes, the Company cannot guarantee that the Prime Controller, and thus a HashStaker, will receive a portion of new Paycoins released during any staking period. Prime Controllers stake against other nodes. Third parties may control nodes that have much larger stakes than Prime Controllers and therefore receive a higher portion of new Paycoins.
4.8 Risk that Company Loses Control of Prime Controllers. Control of a Prime Controller is subject to a public bidding process. The highest bid controls the Prime Controller for the length of the staking round, at which point the bidding process restarts. Because the Company cannot guarantee that it will submit the highest bid for any Prime Controller, the number of HashStakers available during any staking round will fluctuate, and may be zero. There is no guarantee that, during any subsequent staking round, the Company will have control enough Prime Controllers to make a HashStaker available to Purchaser.
"Third parties may control nodes that have much larger stakes than Prime Controllers and therefore receive a higher portion of new Paycoins." EDIT: Makes me think about that testing wallet . . . . |
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They do take credit cards, but at least with some measure of verification: http://leaserig.freshdesk.com/support/solutions/articles/1000075203-credit-card-acceptance-and-payment-policesSeems right now zero verification at Homero's operation, is that even legal? How about that money business license is there one for him in Texas now or wherever you should have it for your operation. The impression they continually create is like a kid trying to stick a cube in the cube hole struggling and struggling and finally does it. Here they been struggling and struggling to keep their promise of CC payments trying everything and everyone, and now they probably lied to stripe to get one, they so proud of themselves, they forgot the fundamental license and verifications. Cause once it is raised it will be declared BETA and the CEO never said it was live yet. However half backed is the MO, they will shut it down after stripe tells them to, claim that something else forced them to close it, trolls attacking it, redditors hacking it, any old excuse, but there after gloat, see we did as we promised, we did provide CC payments. All for a day. Like the 30 second ceiling nearly realized. See but we did do as we said we would, we did meet the ceiling. All of 30 seconds that lasted. Same story different day. We're in the MAJOR leagues now, ladies and germs. The second he and/or is coverts launched this extension of Paybase, the scheme fell under the direct jurisdiction of the US FinCEN per 31 CFR 1010.100(t) (formerly 31 CFR 103.11(n)). Adding his 10% "convenience" fee is just icing on the cake. Expect things to happen much faster now. Ref: http://www.fincen.gov/financial_institutions/msb/definitions/msb.htmlhttp://www.fincen.gov/financial_institutions/msb/definitions/person.htmlhttp://www.fincen.gov/financial_institutions/msb/definitions/fin_ins.htmlThey are registered w/ FinCEN as an MSB. However, that's easy. Its a one page form. They also have to be licensed in the states they do business with customers. Those licenses are difficult to get. You have to have liquid capital in certain amounts, be bonded, pass a background check, etc. I put together some info on this type of situation RE: Moolah a while back, much of the info applies here too: http://www.reddit.com/r/notDogecoinFUD/comments/26wu0t/some_moowhitelies_errors/RE: Cantor - its that guy as an individual, not Cantor. The cointelegraph article was turrible on the details. |
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Why do you think they have $100M in backing? Because Josh says so?
Maybe they made some money by selling all the hardware that belonged to the people who were mining over there, but no way this can ever be $100M.
I think you misinterpreted my comment - I should have made it more clear; apologies for poor sarcasm usage. I DON'T think they have 100M. I was pointing out an inconsistency: excuses/justifications for their suckage based on inexperience are incompatible, at least to me, with also believing they really had 100M USD in investor backing. Sorry for that, I misinterpreted it. English is not my native language. No, no. Totally my fault. Its a good lesson - I should write more clearly and shouldn't assume everyone speaks the same language or in the same proficiency. Sincerely, thank you for the reminder. Wish there was a dogecoin tipbot here, I would make a shibe out of you. |
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Why do you think they have $100M in backing? Because Josh says so?
Maybe they made some money by selling all the hardware that belonged to the people who were mining over there, but no way this can ever be $100M.
I think you misinterpreted my comment - I should have made it more clear; apologies for poor sarcasm usage. I DON'T think they have 100M. I was pointing out an inconsistency: excuses/justifications for their suckage based on inexperience are incompatible, at least to me, with also believing they really had 100M USD in investor backing. |
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why are you betting so hard on these guys?
I don't know because the idea of a complete platform appeals to me. Because this is the first cloud staking platform? I mined a block of BTC in 2010 and promptly forgot about it until it spiked in november 2013 I have invested these in numerous stuff and never got any good return from it. I bought a hosted war machine from GAW for $6999 in BTC and when the price dropped the next day I complained and got a partial refund for that. Then came the hashlets and the return was good. it went downhill from there because of diff changes and BTC price tanking. I already had a break even and reinvested everything again. I really don't care If I get any return from this but I like the idea of cloud staking and the direction that GAW is going. You sound like a knowledgable IT guy to me. Can't you tell these guys barely know what the fuck they're doing and I'm not talking about any of the "failed promise" antics, I'm just talking purely from a technical perspective: they are absolutely incompetent.
I mean, what did you really think of that pathetic Paybase release?
Zencloud first. They made bad choices about the platform From what I can see this is based on nodejs. Now I did some developement in nodejs and could see immediately that the single thread stuff would cause large problems with performance unless very strong measures where taken like running multiple instances and very big load balancing. Second bad choise was the DB backend I suspect from all the errors and mistakes they are using nosql instead of a proper transactional DB. nosql and relations are a big nono it takes too much programing to maintain referential integrity. I think they finally changed the DB backend a few months ago and since then it has been stable. But it is still nodejs. Paybase is supposedly developed by an outside company they choose PHP as a frontend so I expect them to use something more stable and more robust as a backend mysql or postgresql. Paybase is by no means complete or what it should have been it feels like something thrown together at the last minute. (Indie developers?) They are really young in development and implementation but they are learning fast. And they are trying to do good for their customers even though they make a lot of mistakes. Developers "really young in development and implementation" are not getting $100M in backing. People putting up big dollars have people w/ lots of relevant credentials to conduct techy due diligence before forking over cash. |
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I think what I'm looking forward to most in this whole fiasco is the validation when we hear from an official that Joe Mordica is just an alias the CTO uses and not his real name. For most of this, I was a little behind the curve, thinking that GAW was just making mistakes. It took some real evidence for me to believe there was actual fraud. For "Joe Mordica", it's the reverse. No one else believes it even though it's as clear as day to me.
RE: Joe - extremely bizarre situation if you ask me. Anybody have the background to calculate the odds of two people both having the first name Joseph, last name Moridca, live/be from Hattiesburg, the Hattiesburg in Mississippi, have attended U of So Miss, and be w/i the age-ballpark of one another? I assume that the odds of there being two Joes that share these same variables are small (there's a dead Joe Mordica w/ these same variables, for those not aware), but it could very well be the case that there are two Joes. |
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I'm pretty sure it was just some shitty blog. I don't think it's reliable at all. There are reliable news sources in digital currency ?.  Ouch  That question mark was a typo.  You guys do a good job. |
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I'm pretty sure it was just some shitty blog. I don't think it's reliable at all. There are reliable news sources in digital currency? |
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wonder what name will show up on the buyer's cc statement for the seller. wonder if they have money transmission licenses at the state level - the one page MSB FinCEN form is just a notice filing, doesn't include the bonding requirements the states have.
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Made it over 1/2 hour before getting banned for complimenting an outfit. They never recognized my name.  http://imgur.com/jQa03D5 |
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Just a quick time-out, people...
Je Suis Charlie
NEVER allow twisted ideologies derail the freedom of expression and humanity.
Scott-
Truth. |
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I have now sent an email to the state attorney general asking him to look at the entire paycoin/paybase/gaw investments and promises
Which state? DE? VT? MS? Gaw miners and all subsidiaries are registered in CT The GAW Miners LLC and "BTC" derivative corporate registrations are in Delaware. The actual DBA's like Paycoin, PayBase, GAW Corp, Geniuses at Work, Zenminers, et al. are not registered anywhere. Scott- Status is still unknown. Regardless, it was only a DBA at the time the others were filed in DE the second week in December. At this point, it really doesn't matter, however. Existing anti-trust laws will not allow Garza to hide behind the corporate vale no matter how many entities he registers. Scott- Scott - going off memory here and I haven't checked these in a while, but here are some Mass filings: http://imgur.com/RqRaECF Its very possible some of the Mass. records register foreign corps in Mass. - can't remember and too lazy to go through all of the filings right now). Thanks for your contributions so far (goes to everyone, btw). |
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I have now sent an email to the state attorney general asking him to look at the entire paycoin/paybase/gaw investments and promises
Which state? DE? VT? MS? Gaw miners and all subsidiaries are registered in CT This is incorrect. They have a Paycoin (or PayBase) company registered in Delaware. There are several companies in Mass as well - look for Geniuses at Work in the Mass Secretary of State Records, as an exmaple. You'll see his attorneys sometimes appear to be Legal Zoom, IIRC. |
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