BitEnsure (Latest Ponzi Scheme)

[odolvlobo]

4) We insure all deposits. This simply means we keep a cache of Bitcoins that we own and keep separate from our operations which is greater than the sum of our deposits and any given time. Therefore, if there were ever a hacking situation or some other unforeseen catastrophe we would be able to return any deposited funds.

I'm trying to figure out how  you can pay high interest rates on deposits if they just sit there and do nothing. Do you use your deposits as collateral? If not, then the big question is why do you pay interest on deposits when they do nothing for you?

If you do use them for collateral, then do you also insure your deposits against trading losses?

[pedrog]

It has all the red flags!

[mechs]

It has all the red flags!

What is ridiculous is he literally hit EVERY SINGLE PONZI SCHEME red flag.  He did not miss a single one

[DumbFruit]

I would also like to hear the answer to odolvlobo's question. Though I can't think of any explanation that could pass a Prima Facie giggle test.

Thanks for doing a bit of research on him, DumbFruit.

Well shucks, it was nothin'. He sure put alot of work into this, I wish he would've put that effort into something less scammy.

On the bright side, being someone that regularly listens to Walter Block, I get the impression that even scammers can perform a benefit to society in that they teach the gullible a lessen, or impoverish those that wont learn. Maybe it's a sign of the health of the Bitcoin economy that we are tested with these things.

Edit: BitEnsure is closing up shop it looks like. (8/10/13)