That explains exactly nothing about how he made positive returns, much less in the amounts he was supposedly getting, for victims investors.  Could you summarize in your own words how Pirate made 7% returns (in BTC) weekly by taking your Bitcoin, selling it for cash, and then...purchasing Bitcoin back?  He would have to have been doing MASSIVE volume, and there is no way his local "friends" could have supported this sort of scheme based only on their desire for purchasing Bitcoin.  They could have gotten their Bitcoin anonymously from BitInstant or even through an exchange (as long as they aren't withdrawing, you can purchase Bitcoin anonymously easily online).  This makes zero sense as a business unless there is something I'm missing.  Maybe you could explain it.

The Business:
Over the last few months I have been selling BTC to a group of local people.  Now this is a don't ask don't tell group of people so I can't tell you exactly where and to whom the coins ultimately end up with but so far its been pretty painless.   During this last week I maxed out my available coins both personally and "leased" from other members and they needed a lot more.  Up until now, I have dealt with my core group of friends and been able to handle the requests, but they seem to be getting larger and more frequent.  So now I'm looking into other methods for keeping a consistent storage or on-demand availability of coins.  I have two plans available for those sitting on coins.

On-Demand
When an order comes in that is over what I have available I'll send out a request to users in this plan requesting the total needed.  The first to respond gets the deal and the transfer is made.  These coins will be tide up for 1 business day to give me enough time to settle the transaction and acquire the coins to return. This plan pays a flat 3.5%.

Storage
This plan works as an ongoing commitment.  You would send coins anytime to the address provided and you would earn interest on a daily basis.  You can withdraw your balance at anytime, but I do request that you give me a couple hours to insure I have coverage for the next order.  Interest payments are paid out ever 3 days until either you withdraw the funds or my local dealings dry up and I can no longer be profitable. This plan pays 1% per day.

Now I would hope to have enough people on the storage plan that I wouldn't have a need for the on-demand but I'll see how it goes.  I ultimately want the ability to provide coins at anytime and any amount for these guys and we can all share in the profits.

I've created my own custom management software that I've built to monitor deposits, withdraws and interest payments.  As this gets bigger I'll build a front end for it so users can view and manage there account and maybe putting that domain btclending.com to good use.   

For more information send me a PM or just ask below.  You can check out my OTC ratings in my signature.

Edit: I forgot to mention that dealing with anything less than 50BTC is more work than its worth so I've made that the minimum on both plans.

Thanks

"Key activity is monitored. Microsoft reserves the right to suspend or terminate your subscription, without any notice or obligation to you, if Microsoft detects suspicious activity related to keys or activations..."

if he pays out all the accounts he has info for, then he'll be paying payb.tc 168300+ btc.

he has info for me, and my account.

At this time, all Pirate Pass-Thru operators are required to submit a list of their sub-accounts including; balance, forum / IRC name (or any other way of linking and confirming the account) and Bitcoin withdraw address. Payments will be processed directly by Bitcoin Savings & Trust to Pirate Pass-Thru sub-accounts upon verification and cleared of any outstanding conditions. Principal and interest payments are subject to review. No timeline or further information is available at this time.

[13:56:10] <@pirateat40> Notice:  If you are a PPT operator please contact me via PM.  Thanks

Could anyone offer some info/speculation on this? Try to refrain from talking about ponzis and focus on the actual value created by this service and the exchange risks.

hypothetical, because such a negotiation would have to include a deadline (whether stated explicitly or only implied). then before the deadline, i could have time to talk it over with my account holders.
although, i'm almost certain most would say yes, because that ratio is far higher than what some of the accounts have been trading for.

Again, a fine idea, but again we'll get complaints that we rigged the demo somehow.  I'm not sure about the radio silence thing, since there's nothing that hasn't already been said available to communicate.  What details would you like to know?

hey - he's using my chrome extension
that's nice to know

<BitMinerN8> So you might want to check your BTCS&T Accounts. I did this morning, no change, 5 min ago, showed a full balance withdrawal. Checked my wallet, payment inbound. So Pirate is paying out!!

[10:48:50] <ineededausername> I confirm that the inputs are owned by pirate
[10:49:02] <ineededausername> but I don't know whether BitMinerN8 is telling the truth

[10:54:05] <@pirateat40> Just cleaning out the smaller accounts to make things easier.

For me, cooling performance and noise is a big buying decision....