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Author Topic: [2015-06-19] ArsTechnica: After Bitcoin loan goes south, judge rules man must...  (Read 663 times)
pawel7777 (OP)
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June 19, 2015, 10:09:59 PM
 #1


After Bitcoin loan goes south, judge rules man must repay over $67,000

http://arstechnica.com/tech-policy/2015/06/after-bitcoin-loan-goes-south-judge-rules-man-must-repay-over-67000/

Quote
A judge in rural Breathitt County, Kentucky (population: 13,878) ruled earlier this month that a local man who received a loan of 11.95 bitcoins in December 2013 must repay it, including interest, for a total amount of over $67,800 (about £42,600).

Back then, when the price of one bitcoin was rapidly rising and trading in the $800-$1,000 range, a Brazilian man named Daniel Kaminski de Souza loaned the bitcoins using a peer-to-peer bitcoin loan site called BTCJam. At the time of the loan, those bitcoins were worth about $10,000 (£6,300).

The borrower, Dennis Kerley, offered a 20 percent return to his lenders within a year. His plan was to use the money to buy bitcoin miners—obviously, it didn't work out. Kerley did not respond to Ars’ attempts to reach him on Thursday evening.
...

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unamis76
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June 19, 2015, 10:21:10 PM
 #2

Good to see that the person who lent the coins is actually going forward with justice... This just goes to show that people who come here to scam aren't inimputable, just because this is "magic internet money"... This is serious business. Unfortunately some people just see this as joke and an opportunity to scam.
pawel7777 (OP)
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June 19, 2015, 10:46:23 PM
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Good to see that the person who lent the coins is actually going forward with justice... This just goes to show that people who come here to scam aren't inimputable, just because this is "magic internet money"... This is serious business. Unfortunately some people just see this as joke and an opportunity to scam.

Agree, too many victims choose to do nothing and just give up.

Although in this case, according to lender's lawyer it's uncertain whether he'll get his money back:

Quote
He admitted that it would be difficult to collect the money from the Kentucky man.

“Just because I get a judgement, it’s a piece of paper—I can try to put a lien on his house, take his car, but he has various homestead exemptions,” he added, citing a law in Kentucky and elsewhere that exists to protect homeowners with deceased spouses who owe money to creditors.

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kjlimo
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June 19, 2015, 11:29:18 PM
 #4

Has there been a judge Judy case involving Bitcoin yet?

Coinbase for selling BTCs
Fold for spending BTCs
PM me with any questions on these sites/apps!  http://www.montybitcoin.com


or Vircurex for trading alt cryptocurrencies like DOGEs
CoinNinja for exploring the blockchain.
whenwhatwherewhyhow
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June 20, 2015, 05:17:39 AM
 #5

I must be brain dead or not seeing something right.  That amount of BTC to pay back only costs $2900 right now.
pawel7777 (OP)
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June 20, 2015, 08:46:50 AM
 #6

I must be brain dead or not seeing something right.  That amount of BTC to pay back only costs $2900 right now.

The judge must have valued the coins at the rate when the loan was made, or at the time the loan was due. Also included is interest and likely all the legal costs incurred by the lender.

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