"Pirateat40" Makes Off $5.6M USD in BitCoins From Pyramid Scheme
Bitcoin investors fall for classic Ponzi ploy
Jason Mick
2012-08-24
http://www.dailytech.com/Pirateat40+Makes+Off+56M+USD+in+BitCoins+From+Pyramid+Scheme/article25538.htmBitcoins, everyone's favorite quasi-legal internet currency, are still lingering around thanks to strong support from the hacker, future, and technopunk communities.
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And of course, the onus for these losses largely rests on those who sent someone named "pirateat40" actual money, and failing to recognize the classic signs of a Ponzi scheme -- inflated interest rates, shadowy management, and unrealistic promises.
