Did pirate default? IRC Chat Log inside!!

[misterbigg]

@~5:30PM PST:



Discuss.

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Pre-emptive Jennifer Lawrence:

[fcmatt]

Much discussion in other threads.

[mrSprinkles]

just curious what irc client is that?

[misterbigg]

just curious what irc client is that?

It's mIRC

[finkleshnorts]

Goat would tell you to look up "default" in the dictionary

[DeathAndTaxes]

Pirate defaulted 10 days ago ...

The accounts were demand account meaning they could be drawn on demand.  Last Friday Pirate violated the terms of his own contract.  If that isn't enough he made an explicit promise to bitlane that he would be repaid on Monday a promise he failed to keep.  So Friday or Monday is when the default occurred.  Everything since them has just been the moving of goal posts.

[Cluster2k]

The original story was that he was winding up his investment scheme as it was beginning to be too big and complex to handle.  Fair enough.  He should have all the money on hand to return, unless he's placed it himself in another highly speculative investment that's not going right.  His declaration of closing BTCST suggested it was of his choosing, not that he was forced to.

It seems to me pirate is now saying the market or conditions have turned against him, and now he's blaming personal attacks too.  Makes me wonder how long before he declares 'I would have returned all the money long ago, but it's your fault I haven't because so many people said I'm running a ponzi scam'.

[dust]

Quoting D&T from an another thread:

Another way to look at it is IF you run a business that is 100% legit but it utterly indistinguishable from a ponzi scheme then guess what .... the risk that it will be confused with a ponzi scheme and you may suffer a lack of liquidity as a result is a business risk.  A risk that both the operator of the business and the investors should have considered.   Lets assume Pirate operation was 100% legit.  Could he have done anything to mitigate that risk?  Transparency?  Delayed withdrawals?  Working with a smaller pool of high net worth investors?  Since he chose NOT to take steps to mitigate that risk factor and the "investors" decided to ignore that risk factor any losses are solely the fault of the operator and investors.

[John (John K.)]

I'm mostly curious about what are the "legalities" and "Real world contracts" he mentions?

Also, if somebody could explain me that sentence, I'm not sure if I understand it correctly:
"I'm going to be forced to pay everyone at once"

Does this mean paying everybody as soon as possible? Or does that mean paying everybody in one shot?

It should be in one shot from what I gather from the chat.

[Bitcoin Oz]

Pirate defaulted 10 days ago ...

The accounts were demand account meaning they could be drawn on demand.  Last Friday Pirate violated the terms of his own contract.  If that isn't enough he made an explicit promise to bitlane that he would be repaid on Monday a promise he failed to keep.  So Friday or Monday is when the default occurred.  Everything since them has just been the moving of goal posts.

If that isnt unambiguous enough nanotube has the contract for the Vandroiy bet waiting in the wings.

[DeathAndTaxes]

Does this mean paying everybody as soon as possible? Or does that mean paying everybody in one shot?

Obviously when you owe $5 mill USD at 3400% the best possible thing to do is wait 2 weeks (extra $1 mil USD owed) and pay everyone at once instead of paying it down from day 1.

(I think Pirate scamming skills have grown weak.  Nothing in his post made any sense whatsoever. Then again his shills and idiot victims bought every dubious half truth or nonsensical response in the past so he likely has grown use to the bar being set low).

[Bascule]

I'm mostly curious about what are the "legalities" and "Real world contracts" he mentions?

Also, if somebody could explain me that sentence, I'm not sure if I understand it correctly:
"I'm going to be forced to pay everyone at once"

Does this mean paying everybody as soon as possible? Or does that mean paying everybody in one shot?

The answer's here: https://bitcointalk.org/index.php?topic=103145.0

[sadpandatech]

Does this mean paying everybody as soon as possible? Or does that mean paying everybody in one shot?

Obviously when you owe $5 mill USD at 3400% the best possible thing to do is wait 2 weeks (extra $1 mil USD owed) and pay everyone at once instead of paying it down from day 1.

(I think Pirate scamming skills have grown weak.  Nothing in his post made any sense whatsoever. Then again his shills and idiot victims bought every dubious half truth or nonsensical response in the past so he likely has grown use to the bar being set low).

 

[Gladamas]

I'm going to post a text version of what Pirate said.

<pirateat40> I'd just like to say, I never expected all this madness when I shutdown BS&T.  It's been a lot more work than I could have even thought and I simply messed up. In hindsight, I shouldn't have stopped things so suddenly. Although it was nice to finally get some sleep, things have been spiraling out of control this week and pushing my personal deadlines.

<pirateat40> At this point and in an attempt to stop the bleeding (interest) I'm going to be forced to payout everyone at once, which I'm sure will piss off enough people to counter the lack of payouts but I don't see any other way of handling this.

<pirateat40> My concern is not "winning" the bet as much as it is "donating" the winnings.  With the events of this week causing delays, 5K worth of coins is a piece of sand compared to the amount of money I'm losing every hour.

<pirateat40> I'm doing everything in my power within the contracts of the "Real World" to get things moving as fast as possible.  If, I end up losing the bets and spending everything I worked for to make things right I will.  I will not be giving any additional times or dates until I know exactly when things will happen.

<pirateat40> I know you guys want updates and communication, but I'm somewhat muted by the personal attacks and legalities of whats going on. There is a lot more to this story than just "Send me back my coins."  If I had all the coins just sitting around I would've has this wrapped up a long time ago.

[HDSolar]

I have been watching this effort for some time.  It may say newb next to my title but I have been lurking.  I have funds tied up in this and know others that do as well.  I also knew that getting these rates was a bit unreal and figured that I was getting in early enough to be able to get out before it fell apart, wrong.  

All of that said if Pirate is really trying to return all of the principle funding and with some or all of the interest I would consider him a hero compared to other financial wizards in the normal/real finance world.  I would say that if he pulls that off he should consider a new more stable venture once the dust has settled and contact those who did invest with him to invest again in the new venture.  

If all he returns is the principle to all the investors then we really should be adults and understand that mistakes/shit happens and that we should be lucky to get that back.  I know allot of people who did not get that when the housing market took them for a ride.  

If he does run with all of the coins and we get nothing then he goes down with all of the others in history under the term Ponzi artist/crook and all we get is a lesson learned.  

I know I needed my funds back to help pay for my investments in this bitcoin world but I will survive, I know others who has significant amounts and all in all it is just a sad thing if he runs.  If he does not and I would say his actions as of late may have me thinking he might not then wow to him.  If he does run with the actions he has done in the last 30 to 60 days like meeting people, making posts after the fact and other communications then he is nuts.

I wish all of us luck who are in this ride and see you on the other side whenever that it.

[JoelKatz]

I'm mostly curious about what are the "legalities" and "Real world contracts" he mentions?

There are none. That's just making unverifiable excuses. You're supposed to imagine that because you don't really know what he's doing, there might be circumstances that prevent him from paying people back immediately. He's hoping you'll make up the excuses you find most plausible, that way he doesn't have to figure out an excuse everyone believes.

Also, if somebody could explain me that sentence, I'm not sure if I understand it correctly:
"I'm going to be forced to pay everyone at once"

Does this mean paying everybody as soon as possible? Or does that mean paying everybody in one shot?

It means he's asking for the maximum stall time you're willing to give him. The idea is to induce people to wait as long as they would be willing to wait for a full payback by promising that he'll pay everything at once. It's a classic tactic.

Say you owe me $1,000 and $50 is due now. I'm mad at you. You say, "I'll pay you the $50 next week". I still break your legs. But you say, "I'll pay you *all* of it next week". Maybe now I'm willing to wait another week. While they both stall for another week, the greater promise makes the stall more tolerable.

Classic stalling tactic -- to get more time when you don't plan to deliver at all, increase your promise to the maximum and thus earn the maximum stalling time anyone is willing to give you.

It seems to me pirate is now saying the market or conditions have turned against him, and now he's blaming personal attacks too.  Makes me wonder how long before he declares 'I would have returned all the money long ago, but it's your fault I haven't because so many people said I'm running a ponzi scam'.

What I know about the personal attacks is that some people on IRC become REALLY aggressive when pirate shows up and completely destroy the conversation. Add to that the PM he gets each day, all the personal informations splattered on the forums and how everything he says is scrutinized like under a microscope, I'm happy to be me and not to be him at the moment.

If pirate is a fraud, I'm seriously wondering why he's still hanging around here. Close GPUMax, stop the payments and run dude! I don't know what you're waiting for, nobody is going to deposit more BTC anyway.

If he's legit though, the amount of pressure must be gigantic.

He's still making money. Why would he run when money is still rolling in? So long as people continue to believe that he might pay, his debt is still worth something, so he can keep selling it. He can produce an unlimited amount of debt, so he's not going to stop until his debt has zero value.

[bigasic]

I've said all along..Why not keep paying the interest? at least you would have stopped the bleeding a long time ago. Now, he owes A LOT more. If he paid the weekly interest, i can guarantee you investors and the anti pirate camp wouldn't be saying much...

He had a system down for paying interest. i heard that it was paid out like clock work.. So, why stop that? If it is legit, (*cough*cough) then he would have kept paying and no one would really care when he paid the principle...

Oh- but he does pay 11 or so small accounts, that just doesn't make any sense..

[LoupGaroux]

Joel hits it dead on the money.

I have resisted the temptation to break out the "Gee, everybody told you so..." bat and beat the community over the head with it thus far on this one... but really? Does anybody think that there is going to be one thin dime forthcoming on this latest chapter of "How I Spent My Summer and My Fortune Getting Hosed On The Internet"?

Wait for it kids, in about 46 hours there will be a huge announcement that all of his work and effort has gone to naught and the entire repayment sum was hacked. It's the obvious play after the stalling runs out. There will be some vague little tease about what he was doing with the money (re-inventing the internal combustion engine to run on water, or brokering AIDS vaccines) and why it was the single most profitable concept in the entire history of the human race, and only one glorious little hacker was ever able to figure it out. But he needed a little time to spend with his family, and hadn't really slept for 6 months, so the idea doesn't work now, he got hacked and gosh, I'm sorry, but all the funds are gone. And if you will please check the very fine print on page 397, paragraph B, subsection 134R, you will all learn that since this was a SPECULATIVE investment, there was never any guarantee that you would ever get anything back. Too bad, so sad, but it's all over now.

And the diligent little army of love slaves will rush to his defense and tell us how he really does deserve a chance to help raise his poor kids, and sleep really isn't over-rated, but vital for boy geniuses, so it's okay. And besides, he promises to work it off and make good to the three people who stood by him.

And the only reason he won't pay off the bet is because he doesn't trust that the donation will be made to the right charity, so that will be null and void too.

FFS, people, read your scripts. We've seen this whole act before, and chances are pretty damn good that some other brilliant scammer will be around shortly to fleece the next round of the willing and ignorant.

And for the TL/DR crown... YES, HE DEFAULTED. YOU ARE SCREWED.

[sadpandatech]

I was just about to thank Joel for posting more often lately. You have certainly summed it up much better than I would have, Lou.
Thanks to you both.

cheers

[imsaguy]

YES, HE DEFAULTED. YOU ARE SCREWED.

Phew, I'm glad that's settled.  I guess that means we keep posting the same stuff over and over now.