Its Official Pirate Has Defaulted!!

[fcmatt]

goat, thanks for posting that.

and now i realize why certain people kissed so much ass to pirate and will continue to do so
in hopes of getting a few btc back.

i have no idea why pirate thinks he can "be safe" and "sound" after all this. it is like he has no
conception what people are willing to do to get pay back one way or another. I have seen some
messed up things over so little let alone this.

3-5 million is untraceable funds makes for a pretty easy disappearance. 

He could go live in Jamaica the rest of his life and none of his lenders could ever find him. 

um. you really think someone who does not give a fuck will just let that go? will not terrorize
anything related to pirate in any shape or form? i guess if pirate does not give a crap about his
family and friends.. sure that is possible.

this idiot is still on irc spouting off nonsense like it is a game. almost like he is oblivious to repercussions
and consequences. to be so dumb to think this will "just go away" and showing up in vegas was just
an exciting adventure.

this ain't a movie. his parents are not past away, no grand parents, no siblings, no friends for the last decade.
this is more then likely an IT nerd with a shady background (drugs) who has no idea how this will play out.

[fcmatt]

[bitlane]

When a few of us dared question how someone can make 7%, pirate's loyal supporters  flamed us pretty good. Guess we deserve to say: "Told you so!"

Sad how he and his buddies are so firmly entrenched in the bitcoin WOT. What a joke. Fuck, pirate himself is an OP there.

For all we know, nanotube is pirate's gay lover or alt identity.....perhaps a DBA ?....LMAO

Trendon made his OTC rep doing $10 Paypal transfers to a bunch of newbs.

[repentance]

Do you think all the passthrough sellers are at personal risk of losing assets from legal proceedings ?

I'm honestly not familiar enough with the terms of all the pass-throughs and the jurisdictions in which they operate to give an informed opinion on that.    I don't know how their pass-throughs would be regarded legally in the jurisdictions in which they're located or whether they'd be regarded as promoting/operating an investment scheme, or if they've fulfilled product disclosure requirements.

My uninformed opinion is that in some jurisdictions the operators would not have personal liability because the product and the risks were fully disclosed and investor funds weren't misused.  They may have technically breached financial services regulations in some places, but that alone won't necessarily make them liable for their lenders' losses.

[yochdog]

goat, thanks for posting that.

and now i realize why certain people kissed so much ass to pirate and will continue to do so
in hopes of getting a few btc back.

i have no idea why pirate thinks he can "be safe" and "sound" after all this. it is like he has no
conception what people are willing to do to get pay back one way or another. I have seen some
messed up things over so little let alone this.

3-5 million is untraceable funds makes for a pretty easy disappearance. 

He could go live in Jamaica the rest of his life and none of his lenders could ever find him. 

um. you really think someone who does not give a fuck will just let that go? will not terrorize
anything related to pirate in any shape or form? i guess if pirate does not give a crap about his
family and friends.. sure that is possible.

this idiot is still on irc spouting off nonsense like it is a game. almost like he is oblivious to repercussions
and consequences. to be so dumb to think this will "just go away" and showing up in vegas was just
an exciting adventure.

this ain't a movie. his parents are not past away, no grand parents, no siblings, no friends for the last decade.
this is more then likely an IT nerd with a shady background (drugs) who has no idea how this will play out.

A lot of people talk big on the interwebs.  Very, very few have the balls or the ability to follow through on threats.  

I will believe it when it happens.  Most (and I will bet all) will shirk off to the corner, nurse their wounds, and hope legal remedies will get something back.  I doubt even Bitlane will go break his legs in exchange for 20 years in prison.  

[fcmatt]

3-5 million is untraceable funds makes for a pretty easy disappearance. 

He could go live in Jamaica the rest of his life and none of his lenders could ever find him. 

Truly "Disappearing" is a lot harder than it seems.  Very few people manage to pull it off when there are lot of people looking for them.  People who have family have a VERY difficult time truly disappearing.

I'm pretty sure he will not be disappearing, I'm pretty sure he wants to play lawyer games.

seems likely. safe lawyer games. he actually gave out a fricking email address using a reg domain name. seriously.

[bitcoiners]

Well as long as he is still an OP in #bitcoin-otc, I guess that's all that matters.

Time to let the negative feedback begin!

This.

And they've begun.  

http://bitcoin-otc.com/viewratingdetail.php?nick=pirateat40

[wormbog]

If he was going to disappear he would have done so already.

Instead, he's realized that he didn't cover his tracks effectively from the beginning and now disappearing is not an option. He's spent the last week scrambling to recover BTC... and talking to a lawyer or two.

The original plan was to cash out, announce termination of service, buy up cheap BTC in the ensuing market crash, return the coins and pocket the extra cash. It would have been a perfect scheme... except the market didn't crash hard enough.

Now, his lawyer tells him that he's going to be on the hook for returning that money, and his life will be destroyed by endless lawsuits unless he can settle up. He needs to spread the responsibility for his failed scheme around so it doesn't all fall on his shoulders. His lawyer advises that if he can show that his pass-through cronies knew or should have known that he was running a ponzi then they will be liable to their pass-through customers, not him.

But the lawyers need a list of all those pass-through accounts so they can divert liability to their respective operators. And that's exactly what he asked for tonight.

DISCLAIMER: wild speculation, IANAL, etc.

[bitlane]

I doubt even Bitlane will go break his legs in exchange for 20 years in prison.  

I have learned that it is MUCH easier to file an International Fraud Claim, since I am from another country.
Internet and Confidence Scams alike are punished SEVERELY every day in America.

If I am to be another statistic, then so shall he.

[BitBlitz]

Direct from IRC
[19:53] <@pirateat40> I'm finally out of the country, so here goes....
[19:54] <@pirateat40> As much as I've tried to meet the deadlines within the community, there're conditions beyond my control which have escalated the process to the point it is today.
[19:55] <@pirateat40> Bitcoin Savings & Trust has hereby given notice of default to it's account holders.

You missed a line.  FTFY.......

[MPOE-PR]

And they've begun. 

http://bitcoin-otc.com/viewratingdetail.php?nick=pirateat40

You're about a day late.

Aug 28 02:43:29 <BTC-Mining>   ;;rate pirateat40 -1 owes me money, not very talkative about anything, past his repayment delays.
Aug 28 02:43:30 <gribble>   Rating entry successful. Your rating of -1 for user pirateat40 has been recorded.
Aug 28 02:43:36 <mircea_popescu>   shit
Aug 28 02:43:40 <mircea_popescu>   i was about to log in to pop his cherry
Aug 28 02:43:58 <BTC-Mining>   Well I guess he has 1 bad rating now
Aug 28 02:44:24 <Gladamas>   ;;rate pirateat40 -2 If you don't pay your debts, what do you get? A ruined OTC rating.
Aug 28 02:44:25 <gribble>   Rating entry successful. Your rating of -2 for user pirateat40 has been recorded.

[fcmatt]

goat, thanks for posting that.

and now i realize why certain people kissed so much ass to pirate and will continue to do so
in hopes of getting a few btc back.

i have no idea why pirate thinks he can "be safe" and "sound" after all this. it is like he has no
conception what people are willing to do to get pay back one way or another. I have seen some
messed up things over so little let alone this.

3-5 million is untraceable funds makes for a pretty easy disappearance.  

He could go live in Jamaica the rest of his life and none of his lenders could ever find him.  

um. you really think someone who does not give a fuck will just let that go? will not terrorize
anything related to pirate in any shape or form? i guess if pirate does not give a crap about his
family and friends.. sure that is possible.

this idiot is still on irc spouting off nonsense like it is a game. almost like he is oblivious to repercussions
and consequences. to be so dumb to think this will "just go away" and showing up in vegas was just
an exciting adventure.

this ain't a movie. his parents are not past away, no grand parents, no siblings, no friends for the last decade.
this is more then likely an IT nerd with a shady background (drugs) who has no idea how this will play out.

A lot of people talk big on the interwebs.  Very, very few have the balls or the ability to follow through on threats.  



I will believe it when it happens.  Most (and I will bet all) will shirk off to the corner, nurse their wounds, and hope legal remedies will get something back.  I doubt even Bitlane will go break his legs in exchange for 20 years in prison.  

Maybe.. But watching over your shoulder for years to come aint a pretty thing.

Edited to add... I did not lend him a thin dime. I am just thinking how i would feel in his place. And that is shitting my pants.

[bitlane]

Goat, I apologize for being a douche to you..... I only NOW realize that you are getting fucked just like everyone else, or perhaps worse from the requests of Trendon.

[bitlane]

Goat, I apologize for being a douche to you..... I only NOW realize that you are getting fucked just like everyone else, or perhaps worse from the requests of Trendon.

Thanks, it really does suck getting fucked up the ass from someone you trusted...

..and assholes such as myself don't add to the 'discomfort' I am sure.

I HONESTLY thought his game was Realestate/Loans etc in the REAL world and I fell for it hook, line and sinker.

[HDSolar]

Do you think all the passthrough sellers are at personal risk of losing assets from legal proceedings ?

I'm honestly not familiar enough with the terms of all the pass-throughs and the jurisdictions in which they operate to give an informed opinion on that.    I don't know how their pass-throughs would be regarded legally in the jurisdictions in which they're located or whether they'd be regarded as promoting/operating an investment scheme, or if they've fulfilled product disclosure requirements.

My uninformed opinion is that in some jurisdictions the operators would not have personal liability because the product and the risks were fully disclosed and investor funds weren't misused.  They may have technically breached financial services regulations in some places, but that alone won't necessarily make them liable for their lenders' losses.

From what I have seen he is in Texas and they have a very conservative view of property in that state if that is where he is operating out of.  I think that based on what he wrote he is building a bankruptcy case so that if anyone does come back after assets or claims claw-backs that he had a record of what actions were taken and then he came to a settlement with each person listed for the best he could come up with.  I would expect that if the lists are turned in by Friday (and if they are not oh well, shit out of luck) that those folks will be sent back a counter offer to close out the debt.  The key here is what he sends back in the counter if you ask me.  Basically he is going to make each of the trust account holders take a deal for all the accounts they hold and make them go back to their investors/contributors and say here is what I got, .  If it were me that is what I would do so that I could move on with my life and basically pass the buck.  BTC are still property and the law may not fully understand this digital item/effort but they will break it down to the basics and apply the law that fits to this matter.  If he did move the BTC and covered his track he could claim default and still walk away with the funds unless someone get some savvy legal people involved.  All in all this is legal protection, maybe some small payouts to show good faith and the end to this effort.  Also as it was said in this post, someone or a few someones would need to have the balls to push the legal issue if they are not happy with what comes out of this weekend, maybe we will see that and maybe not.

For those of us involved with this investment this saying fits:  It is a big shit sandwich and we are all going to have to take a bite.

[yochdog]

Goat, I apologize for being a douche to you..... I only NOW realize that you are getting fucked just like everyone else, or perhaps worse from the requests of Trendon.

Thanks, it really does suck getting fucked up the ass from someone you trusted...

..and assholes such as myself don't add to the 'discomfort' I am sure.

I HONESTLY thought his game was Realestate/Loans etc in the REAL world and I fell for it hook, line and sinker.

Where are you located Bitlane?  out of sheer curiousity......

[Snapman]

lawl, i knew it since day 1....

so many fools who build pass throughs off a scam....sigh, greed got into the minds of too many, and it bit you all back in the ass.

[repentance]

Maybe.. But watching over your shoulder for years to come aint a pretty thing.

Edited to add... I did not lend him a thin dime. I am just thinking how i would feel in his place. And that is shitting my pants.

I've known people who've scammed way more than pirate has who didn't go around looking over their shoulder.  Businesses fail every single day owing more than is owed to BS&T users and in most cases nothing of consequence happens to their operators.  

If I was in pirate's shoes and I was planning on winding down operations in a legitimate manner, I would want to deal with the pass-through lenders directly, so I'm kind of surprised by his request because I wasn't expecting any legitimate moves by him at this point.

I think that based on what he wrote he is building a bankruptcy case so that if anyone does come back after assets or claims claw-backs that he had a record of what actions were taken and then he came to a settlement with each person listed for the best he could come up with.  I would expect that if the lists are turned in by Friday (and if they are not oh well, shit out of luck) that those folks will be sent back a counter offer to close out the debt.

I suspect something similar to be the case too.  If he can come to an agreement with his creditors, he can probably avoid total bankruptcy and any obligation to apply future earnings to the debts.

[bitlane]

Goat, I apologize for being a douche to you..... I only NOW realize that you are getting fucked just like everyone else, or perhaps worse from the requests of Trendon.

Thanks, it really does suck getting fucked up the ass from someone you trusted...

..and assholes such as myself don't add to the 'discomfort' I am sure.

I HONESTLY thought his game was Realestate/Loans etc in the REAL world and I fell for it hook, line and sinker.

Where are you located Bitlane?  out of sheer curiousity......

Calgary, Alberta, Canada.

[HDSolar]

Maybe.. But watching over your shoulder for years to come aint a pretty thing.

Edited to add... I did not lend him a thin dime. I am just thinking how i would feel in his place. And that is shitting my pants.

I've known people who've scammed way more than pirate has who didn't go around looking over their shoulder.  Businesses fail every single day owing more than is owed to BS&T users and in most cases nothing of consequence happens to their operators.  

If I was in pirate's shoes and I was planning on winding down operations in a legitimate manner, I would want to deal with the pass-through lenders directly, so I'm kind of surprised by his request because I wasn't expecting any legitimate moves by him at this point.

I think that based on what he wrote he is building a bankruptcy case so that if anyone does come back after assets or claims claw-backs that he had a record of what actions were taken and then he came to a settlement with each person listed for the best he could come up with.  I would expect that if the lists are turned in by Friday (and if they are not oh well, shit out of luck) that those folks will be sent back a counter offer to close out the debt.

I suspect something similar to be the case too.  If he can come to an agreement with his creditors, he can probably avoid total bankruptcy and any obligation to apply future earnings to the debts.

+1