Scammer - HashKing

[CecilNiosaki]

As of a few days ago, HashKing wrote that he would be closing down his services, not offering the interest on his 8-week lock-in deposits which were locked into a set rate and deposit schedule, and that he would be paying back people's coins over the next three years or more. The issue here is that his accounts:

A. Are insured, and he is providing no insurance
B. The 1% accounts were supposed to have no funds with Pirate, yet he lost the majority of investors funds there, as well as using investor's funds to buy mining equipment so they were illiquid.
C. He stated that "Deposits could be returned at anytime." - Could being the past tense of can, which they clearly cannot.

See his lending thread more info: https://bitcointalk.org/index.php?topic=66802.0

Feel free to add more information as you see fit, anyone else.

[JoelKatz]

He repeatedly claimed no Pirate exposure, largely because the fund was backed by his personal funds. But we now know that much of his personal funds were in fact "invested" with Pirate. This is what we know for sure because this is what he has said. He has made vague claims about mining equipment that will be used to pay off investors (either by mining or by selling the equipment), but has not quantified this yet.

I do not believe it is known what his total obligations are or what his total equity is that will be used to pay them back.

But the crux of the argument behind those calling him a "scammer" is that he claimed no Pirate exposure but clearly had significant funds held with Pirate such that losing those funds impacted his investors. There's no way he couldn't have known that Pirate being unable to pay back would impact his investors, yet he continued to collect deposits with the promise of zero Pirate exposure. Those investors are now left with an uncertain payback schedule that may well never materialize.

[Mushoz]

I'm pissed off. Seriously, I was getting 1,25% while my funds were exposed to pirate? Are you fucking kidding me? I could have gotten 7% weekly on those same funds if I wanted, with exactly the same risks. And here I thought I was diversifying my investments...

[chungenhung]

I'm pissed off. Seriously, I was getting 1,25% while my funds were exposed to pirate? Are you fucking kidding me? I could have gotten 7% weekly on those same funds if I wanted, with exactly the same risks. And here I thought I was diversifying my investments...

how does that make you feel? This scum bag was using your money which was supposed to be for a low risk investment, turning around and putting it into an extremely high risk investment and making 5.5% interest off of you. That right there my friend is a blatant flat out scam.


hes a scumbag, a liar and a scammer - now where is the tag?

Totally agree.
Scam tag needs to be given to hashking.

[BR0KK]

What did u believe a Pirate Pass Throu was for?

[Mushoz]

What did u believe a Pirate Pass Throu was for?

His Pirate Pass Through was a separate program, but the money which was invested in his "low-risk" program is gone as well due to Pirate's default.
Here's the quote showing the options he offered:

Current Rates:

1.00% Weekly -- Guaranteed Fully Insured no lock in
 
1.25% Weekly -- Guaranteed Fully Insured 8 week lock in

3.30% Weekly -- Direct BTCST Pass Through 50% Insurance 1 week lock in (CLOSED)
Thread: https://bitcointalk.org/index.php?topic=97041.msg1068849#msg1068849
 
4.91% Weekly -- Direct BTCST Pass Through 0% Insurance 1 week lock in  New rate will be effective 8/20/12.  Existing accounts will be switched over to the new rate on 8/19/12.
Thread: https://bitcointalk.org/index.php?topic=82574.0.   (CLOSED AS OF 8/19/12.) 

[JoelKatz]

What did u believe a Pirate Pass Throu was for?

It wasn't supposed to be a PPT though.

"The funds for the deposits will be used for lending out to other borrowers, investing in more mining equipment, bitcoin projects and other investments offered on the forum. ... All my depositers funds are 100% guaranteed and will not lose any funds due to any defaults unless stated otherwise."

The funds that provided this "100% guarantee" were actually "invested" with Pirate. Thus the claim that they will not lose any funds due to default was fraudulent. Pirate defaulted. The depositors lost funds.

[BR0KK]

Lending to pirate was a legal option?!, but the hard part is that he he guaranteed the investment (but didn't do it....).

[Maged]

Who/what backed the "insurance"? Did he ever say?

[wachtwoord]

Mining equipment.

[Maged]

Initial PM sent.

[wachtwoord]

I want to add that I do not understand the compulsive nature of people to address a binary scammer/non-scammer indicator on everyone.

He didn't hold his end of the bargain but there are several ways he can handle it now all with different relative fairness ratings. For me, giving him a scammer rating serves no purpose whatsoever.

[Maged]

Since I have seen evidence that the mining farm that was used to back the insurance exists, it doesn't appear to me that any scam took place. Next time, invest in programs where the insurance pays out faster.

[nimda]

Since I have seen evidence that the mining farm that was used to back the insurance exists, it doesn't appear to me that any scam took place. Next time, invest in programs where the insurance pays out faster.

Now we wait; I doubt he'll stick around. Same stalling tactics as pirate.

[Coinoisseur]

The insurance will pay back over 3 (30?) years. Caveat Emptor, indeed.

[repentance]

Y'all might want to read this.

I'm only 15 so that is the reason he probably has more sense then me.

https://bitcointalk.org/index.php?topic=66802.msg1180141#msg1180141

[vampire]

Y'all might want to read this.

I'm only 15 so that is the reason he probably has more sense then me.

https://bitcointalk.org/index.php?topic=66802.msg1180141#msg1180141

WTF?

So this thread was a complete lie?

https://bitcointalk.org/index.php?topic=75480

[greyhawk]

Would that surprise you?

[vampire]

Would that surprise you?

Nope. But Kluge was recommending him, there goes any trust around here.

[greyhawk]

Would that surprise you?

Nope. But Kluge was recommending him, there goes any trust around here.

Kluge is an unemployed do-nothing with debts up the wazoo. Not the best reference.

https://bitcointalk.org/index.php?topic=108711.0