2012-08-27 TheVerge - Bitcoin Savings Trust Pyramid Scheme Shuts Down

[gweedo]

http://www.theverge.com/2012/8/27/3271637/bitcoin-savings-trust-pyramid-scheme-shuts-down

Remember pirateat40, the e-currency banker we speculated could be the Bernie Madoff of Bitcoin? Well, it looks like he owes a lot of people money. On August 17, pirateat40 announced the closure of Bitcoin Savings & Trust, a virtual hedge fund that promised to pay high rewards to investors who parked their Bitcoins there. Ten days later, investors are still waiting to get paid and pirateat40 is on the defensive. "When I know, you will," says his away message in the fund's official chat room, an effort to quiet the loudening chorus of, "WHERE ARE MY BITCOINS?"

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[Stephen Gornick]

I wonder if as much attention goes to the ponzis that used dollars instead of bitcoins.

ZeekRewards used dollars and had TWO MILLION people invested:

  - http://www.forbes.com/sites/jordanmaglich/2012/08/27/up-next-for-zeekrewards-ponzi-scheme-victims-clawbacks/

Other ponzi’s in the news recently:

• James W. "Bill" Bailey
• Steven Bingaman
• Full Tilt Poker CEO Raymond Bitar
• Robin Brass
• John Clement (Edgefund Capital)
• Brendan Coughlin, and Henry Harrison (Provident Royalties LLC)
• John W. Cranney (Shaklee Corp)
• Ramon Desage (Cadeau Express)
• Gordon A. Driver (Axcess Fund Management LLC)
• Jedidah Duarosan
• Archie Larue Evan (Gold & Silver, LLC)
• Mark Feathers (SB Capital)
• Alan G. Flesher, Wayne D. Flesher, and Nancy Carol Khalial (UCI-Unlimited Cash, Inc. / Ad Toppers)
• Celia Gallardo (Gold Feather Realty, Gold Credit)
• Allen R. Jacobson (Management Solutions Inc)
• David Lincoln Johnson (Financial Solutions,, Gentech Fabrication, Inc.,)
• Chetan Kapur (ThinkStrategy)
• Thomas E. Kelly (Seneca Group)
• Stephen J. Klos
• Jeffrey Lowrance (First Capital Savings & Loan)
• Peter Madoff
• Brian Keith Miller
• Ward Onsa, (New Century Investment Management)
• Terrance Osberger (Eagle Trades, Ltd)
• Wayne L. Palmer (National Note of Utah, LC)
• Gurudeo ‘Buddy’ Persaud (White Elephant,)
• Aubrey Lee Price
• Richard F. Reynolds aka Richard F. Adkins (Buffalo Extension and Buffalo Exchange)
• Eric Schmickle (Q Wealth Management, Aquinas)
• Allen Stanford (Stanford Financial)
• Arthur Strasnick (Backstreet Associates Inc.)
• Ron Wilson (Atlantic Bullion & Coin)

All these were compiled in a blog post (and none were Bitcoin related):
- http://theponzibook.blogspot.com/2012/07/july-2012-ponzi-scheme-roundup.html

[DeathAndTaxes]

Sadly ponzis with dollars are old news.  This will be news and something for the anti-Bitcoiners to laugh about in the coming weeks and months.  Much like the hacks and thefts they will lump the idiots who though 7% interest per week wasn't a ponzi in with every users and bitcoin the currency in general.

However in time it will fade from memory and bitcoin will still be here.  At this point there is enough proof/reason that Bitcoin is viable anyone not convinced will only be convinced by the passage of time.  1 year, 3 years, 10 years when bitcoin is still around those people who ignored and laughed at it will start to doubt their first impression.

However that is long term, in the short run it makes the bitcoin community looks like a bunch of idiots.  The fact that a large number of people called it a ponzi from day one will be overlooked.  The stereotype is that we are a bunch of bumbling idiots who get fleeced by cons, scams, hacks, and ponzis.

[Gyrsur]

Article in german "Spiegel Online" --> http://translate.google.de/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.spiegel.de%2Fnetzwelt%2Fweb%2Fdiaspora-wird-community-projekt-a-852482.html&act=url

[muyuu]

Sadly ponzis with dollars are old news.  This will be news and something for the anti-Bitcoiners to laugh about in the coming weeks and months.  Much like the hacks and thefts they will lump the idiots who though 7% interest per week wasn't a ponzi in with every users and bitcoin the currency in general.

However in time it will fade from memory and bitcoin will still be here.  At this point there is enough proof/reason that Bitcoin is viable anyone not convinced will only be convinced by the passage of time.  1 year, 3 years, 10 years when bitcoin is still around those people who ignored and laughed at it will start to doubt their first impression.

However that is long term, in the short run it makes the bitcoin community looks like a bunch of idiots.  The fact that a large number of people called it a ponzi from day one will be overlooked.  The stereotype is that we are a bunch of bumbling idiots who get fleeced by cons, scams, hacks, and ponzis.

True, but that list above is handy for the upcoming forum wars.

[molecular]

Sadly ponzis with dollars are old news.  This will be news and something for the anti-Bitcoiners to laugh about in the coming weeks and months.  Much like the hacks and thefts they will lump the idiots who though 7% interest per week wasn't a ponzi in with every users and bitcoin the currency in general.

However in time it will fade from memory and bitcoin will still be here.

all this shit just hardens bitcoin.

bitcoin the money laughs last.