I wonder in reality has sunk in for Matt.  He put his rep and $100K on the line for a complete douche ponzi scammer. 

Funny that Pirate admits what already happened 12 days ago.  He was in default the second he didn't pay someone who requested a withdraw.

Of course the question is now that he is in default what % can he repay.  Will creditors get anything. If so how much.  He spends time talking about things that aren't in dispute and then provides no new information.

What makes you think he can do that?  What makes you think he can even pay half?  7% compounded weekly creates some insane capitalized interest.  Of course a responsible debtor would indicate the rough value of the trust BTC and/or USD so creditors would have an idea of how much of a haircut they are looking at.

If he repays 30 bitcents on the coin I will be surprised.  Then again with no info it could be half that or double that.

Well it won't help you for this sale but we are always looking to expand our bank branches. 

Can you PM me your zipcode and/or major national bank in your area?

You have no menus in the Bitcoin client?  Can you post a screenshot?

You were just given exact instrucitons.


There is only one step (other than follow the prompts and enter passphrase twice).

The reason why your new wallet isn't encrypted is ... because you have never encrypted it.


You can see how including it in your description complicates the situation with uncessary details.  In the OP it almost seems like you expected the new wallet to be encrypted because the old wallet was encrypted.
This new wallet.dat is completely independent so what you did or didn't do to the old wallet.dat has no relevence.  For all intents and purposes the client has no knowledge of the old wallet until you restore it (if ever).

Why did you remove your wallet?

If you remove the wallet.dat bitcoin will create a new blank "decrypted" one.
Delete that one and put your encrypted wallet back.

You do understand that encrypted or not the new wallet isn't the same as the only wallet.  They will contain different random keys.

I am not sure what you are trying to accomplish.

Banks generally have a concept for a voided transaction.  It happens thousands (millions?) of times a day. Given that the MtGox code for the withdraw and deposit were exactly the same came from the same account and went to the same account and were ~30 minutes apart it hardly seems IMPOSSIBLE to call that a voided transaction especially when I didn't deposit it I clicked the button labeled (by them) CANCEL.

Yesterday our bank had to void a $28,500 cashier's check because they misprinted a name and I even left the bank with the check. DUN DUN DUUUUNN!!!!  That might look suspicious.  It actually was rather routine and only took a couple minutes, two signed sheets of paper and I had a corrected cashier's check.

Still IF MtGox can't modify their system to handle unusual events that is fine but they shouldn't label the button "cancel".  Also their their customer support should be required to warn customers that canceling a withdraw in progress will still count against their AML limit.

Oh noes you got me notme; I am shady.   That is why you won't find a single person with an unresolved complaint.   Feel free to take it that way and not do business with us.  

Then again we don't offer pie in the sky 3400% APR so I doubt you would be interested anyways.

Still why so grumpy?  Since I wrote that last post you "investors" have locked in another $300,000 or so in profits!  
What are you going to buy with your share?  

what?

Well it is deceptive if not proper disclosed (both on the site and when customer support is adovacting it as a course of action).  Also I really doubt it is the letter or the law.  It seems more to be a technicality of their system and when the system says you are over the limit you are over the limit and "nobody" can authorize an override under any circumstances.  Essentially humans enslaved to the machine they built.

I would hate to see what happens if the system accidentally let you make an invalid withdrawal for $10 mil, only to cancel it.  

"Sorry by AML rules you can't withdraw any funds for the next 200 months.  Please contact us in 201 months and we will be sure to process that withdraw for you. If you get level3 verified we can shorten that to 21 months.  Sorry that is what the system says."

For extra extra security make sure the lava lamp is holding a sign with it's forum screen name and has a shoe on it's head.

Er wait wrong thread.

THIS POST IS GENERAL INFORMATION AND NOTING IN IT SHOULD BE CONSIDERED LEGAL OR FINANCIAL ADVICE.

Dollars -> BTC -> Dollars or Dollars -> BTC -> Goods doesn't really matter.

The IRS would consider that a capital gain (or capital loss) in either example.  Obviously they have to otherwise it creates a trivial loophole.

Say I bought 100 shares of Apple at $100 ($10,000 basis).  It is $5,00 per share ($50,000 or $40,000 capital gain).  Now if Dollars -> Stock -> Goods was treated differently than Dollars -> Stock -> Dollars it would be a nice tax shelter to simply pay people in Apple stock.

Get some share certs and treat them like $500 bills.  The IRS would see the exchanging Apple stock for a steak dinner to be barter just like they would see exchanging BTC for a steak dinner.

So If you bought BTC @ $10.00 per BTC and traded x BTC for steak at an equivalent rate of $13.00 per BTC then you have a $3 per BTC capital gain.  Now obviously barter and BTC makes everything more "messy" and you probably could get away with some fraud.  You and the owner could pretend BTC is only worth $10 and that the steak is worth less and you avoid a capital gain and the owner reports less income.  That doesn't change what is owed so evasion or the morality of taxes is a whole separate topic.

I am going to take a guess but if it ever was a real venture it "went wrong" with the borrowing at 3400% APR.  

To allow us extra liquidity we took out a BTC line of credit at 29.61% APR and secure the right to repay within 30 days notice.  Even that interest rate is a significant expense and one we watch everyday to weight the utility vs the cost.  So far the utility makes it a worthwhile expense but if that ever changes we will drop it like a hot potato. 

3,400% APR?  LOLZ.  No business borrows at 3,400% APR.  Hell even the mob doesn't charge 3,400% APR because it will kill any profitable venture and bleeding a company over time is far more profitable.

MtGox refuses to adjust withdraw limit in the event you cancel a withdraw.

I made a $10K USD withdraw from MtGox by MtGox code.  I was unable to complete the transaction at the destination so not wanting to have a $10K USD "bearer bond" hanging around I canceled the code.  The option is labeled "cancel".  There is no warning this will be considered a deposit.

MtGox informs me the canceled transaction will count against our AML limits.  So $10K out of the $10K daily limit and $10K out of the $50K monthly limit wasted.

What is even more deceptive is that in the past when I (and others) have had withdraws delayed by Mtgox for weeks the only suggestion offered by support was to have them cancel the withdraw and remove funds by alternative methods.  I never took them up on that offer however if I had I might have found myself unable to withdraw funds at all and in a worse spot than simply waiting for the slow withdraw to be processed.

No.  He has stated he will payout if he loses but hasn't escrowed any of the 10K BTC he wagered.

Nobody except Pirate knows how many wagers were sent his way.

You can however make some educated guesses by looking at the 500K BTC owed and the timespan between the average wager and the closing.

My SWAG (scientific wild ass guess) assumptions:
1) The PirateDice system has been operating for roughly 10 months however it really only got large (PPT, gblse bonds, forum buzz, shill supporters) in the last two months.  

2) While some gamblers withdrew their winnings most compounded or increased their winning wagers

3) We will take Pirate at his word that the total unpaid wagers & unpaid paper winnings were ~500K BTC as closing.

4) The average unpaid wager is roughly 12 weeks old then 500K / (1.07^10) = ~220K BTC wagered.

5) 15% of the total amount wagered were paid out with winnings.  These shorter term paid winnings had an average age of 8 weeks.  thus ~60K BTC (220 * 0.15 * 1.07^8) was paid out and not re-wagered.

My SWAG conclusion:  
~220K BTC were wagered.  
~60K BTC were paid out as winning and not re-wagered.  
PirateDice has ~180K BTC in assets (or more like USD equivalent)
PirateDice owes ~561K BTC (500K * 1.07 * 1.05)

Once again a total SWAG it likely is completely wrong but probably in the ballpark.

In case anyone else is wondering this occurs on main-net also.  It is a security feature.  In the event of a re-orrg generated coins will cease to exist.  Unlike normal tx the unconfirmed tx can't simply be submitted again as that block which generated the coins will never exist in this fork of the chain and thus the tx using those coins as an input (and any tx "downstream") will all be invalid and can never become valid.

It can create double spend losses (even accidental ones) as the re-org affects not just the generating tx but any "downstream" txs too.

To be extra conservative the protocol requires 120 blocks before generated coins can be sent.  If we have a >120 block re-org we likely have big problems.

That should only be true if you can never acquire more coins.  Spend some coins and then next week buy some more.  Spend & Buy.

Now if you have coins and no way to acquire more then maybe you should fear spending them but as long as you can acquire more coins in the near future.  I think to encourage spending it would be awesome if an exchange could offer periodic deposits.  i.e. you setup $100 in billpay for your online bank and $100 goes to your favorite exchange and gets converted into coins.

jbreher,

I think you are way overthinking this and missing the obvious.

Say I tell you I want to sell my account (I don't have one but lets pretend I do).  You are suspicious so I let you watch me login to my account through teamviewer.  You see Pirate owes "me" 1000 BTC.  So you buy it from me for 500 BTC.

Now there are two scam possibilities:
a) I am merely a socket puppet for Pirate.  The account is just one made up 10 seconds ago.  It looks legit because it is suppose to look legit.  Pirate knows he won't pay so you bought a worthless account for 500 BTC.  Net profit to Pirate 500 BTC.

b) I am not a sockpuppet but working for Pirate.  He promised me 20% of the value of any fake account I sell to suckers like you.  Same as before but you pay  me 500 BTC, I pay Pirate 400 BTC and keep 100 BTC.  Once again the account you bought is worthless.

If someone right now offers to sell you an account how do you know it isn't really just Pirate or someone working for him?  You don't.

Now for the record I don't think Pirate is that smart.  I don't think he is running this reverse con but he could be.  That is the whole point in a situation like this you have no idea who you are buying from (directly or indirectly) so it may not be a fair sale.  The person selling it to you might already know it is worthless.  Not risky as in Pirate might not pay but absolutely completely worthless as in there is no plan to every pay you a bitcent and that was decided before you ever bought it.