leaked video explained the recent pump of litecoin

[X68N]

interesting story.
sad to combine a ponzi scheme, they could just invest normal.

The good thing is in my opinion, that LTC showed a indipendend move which will stay in chart history.
But the bad thing is that if one dude controls so much coins, its like a premine dev dump.
This adress controls nearly 1% of all coins aviable and so much Volume to drive litecoin another 0.010 down.
So this dude can control 2/3 of the hole daily volume, the last third will just follow since the snowball effect.
If this dude can do this with Litecoin every other smaller coin can be the next victim,
this could burn the hole altcoin community when only BTC is "safe".

Not really happy about that, since we need some plan to spit in his soup.
The only answer to this would be a counter P&D group.
Mission: International Litecoin "Kickass" Team vs. chinese ponzi "Mother Fucker"  

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[Za1n]

sad to combine a ponzi scheme, they could just invest normal.

I don't think this has been proven either way yet. As a matter of fact, except for one little part that mentions 500 LTC, I don't even think the video has been 100% confirmed to be the same address everyone is talking about. Does somewhere in the video show that address?

Perhaps it is related and they do plan on investing normal, there are other powers at work too. The DDOS happening just before and during the time of the crash for instance.

Lots of pure speculation going around imho. I would like to see the whole sales pitch translated and not just a brief clip of some talk about a guy driving around china and briefly mentioning 500 LTC at the end.

[Arbitrageur]

well undoubtedly someone played a coordinated action on many markets. holding down bitcoin till okcoin settlement (in order to screw all the longs positioned in the weekly futures), then dumping litecoin (causing the crash) while squeezing bitcoin just after the settlement (in order to screw all the shorts on the mid and quarter futures contract). Notice that 12 hours before okcoin settlement, more hype was generated in the alt market via a squeeze on nmc and ppc listed on btc-e.

This clearly demonstrates (or just confirms, because I can give more proof this has happened so many times in the past) that also the bitcoin price is totally manipulated by a bunch of guys. In the short term (1/2 weeks) they can fix and print whatever price they want! Whatever! They do it mostly by manipulating at the same time the price on okcoin (both spot and futures) and bitfinex which are the most liquid exchanges.

Now back to the ponzi scheme. It'll be interesting to know much more about it. If only some chinese guys could help in here with the translations and more material from chinese websites. Seems there are none or just a few.

To be honest in the recent past I had a similar idea to that of our guy, but instead of involving a ponzi scheme with depositors looking for high yields, I needed high risk profile investors and a big company with a large client base and marketing power both looking for a very risky but highly rewarding project involving litecoin or another alt within the top 10-15 ranked per market cap. So even though the chances here are 90% for a ponzi scheme whose days are already ended, there might be a slight chance that beyond that scheme lies a larger project aimed to a wider litecoin adoption in China. I guess we will find out soon.

[usukan]

in a very limited sample of forensics on the LTC blockchain - following transactions from main deposit address - down to what are obviously investors with regular payments being made in a circuitous route from the main deposit address - I can say

The main address supported daily payments to investors via many intermediary addresses

http://ltc.blockr.io/address/info/34Ae29qWAhGGTw3cSNkPygiwsgKbbCatou

Investors are still being paid their regular amounts right up to TODAY
http://ltc.blockr.io/tx/info/36a909677951ef4e3728949efec3c37a42c7adc06e6ae79be7437b7b4221ffff


An investor who deposited 10k LTC receives 132 LTC/day back (1.32% per day)
http://ltc.blockr.io/address/info/3P4PexgqW76jp8xUXkYdb9aFuAKHMrm464

you can see this investors deposit of 9500 LTC on 1 July to the main deposit account
http://ltc.blockr.io/tx/info/8de0ac3ba6de4fc1f6526b9346a405ca016c67364a2e5caeb1f37342f6fcb02d

What you might found interesting are the rather large balances in intermediary accounts
http://ltc.blockr.io/address/info/Lhv6b1tumaytM7ENRwfPwVa8RNfRVYw6eJ 660k LTC
http://ltc.blockr.io/address/info/LiBkrsLdt2Teod2euBpB4B1oZNs5RHaTA1 90k LTC
http://ltc.blockr.io/address/info/LepFsZCdzY93gdtyHgKULRFJ8kBKGcpcxF 120k
etc - this is just a sample

and at least the other 23 addresses that recd deposits from the main address on 10 Jul (each holding 30 - 100k+ LTC)

my initial conclusion is that this scheme is still in business as of today - and paying out

but I can't seem to find the new deposit address for the scheme (if there is one?)

If no new deposits in significant numbers - can they continue?  Certainly they can buy a lot of LTC with the BTC they picked up during the dump.  If the LTC price goes up again the value of their LTC goes up - but they need LTC to payout - so this does not really help.

But if they crash the price a few times along the way - they just keep buying back in at bottom to replenish stocks of LTC to pay out to their investors - maybe?

Of course the conclusion to this scenario is that they will just keep increasing their LTC holding - eventually squeezing most others (except their investors) out from owning - and gain total control of LTC by weight of ownership.  The price consequences are obvious.

Just noticed the LTC price seems to be going up again?

[kaene]

in a very limited sample of forensics on the LTC blockchain ......

Very good analysis, I did a similar one, but I haven't found any new deposit address either.

Something else I saw some days ago was some buy orders of exactly 500LTC in Chinese markets, but I'm not observing these now, did they stop it somehow?

Current action price could be other players thinking this was a price correction and/or players who sold at $8 buying again now.

[Arbitrageur]

but I can't seem to find the new deposit address for the scheme (if there is one?)

we should check the blockchain for 500 ltc movements and see if it goes to a big recipient along with more of the same size (I couldn't find one yet).

good analysis as always usukan, let's continue.

[LeChatNoir]

Can't believe he was able to raise 9M ltc and there's not one single investor here on bitcointalk who can explain a little bit more in depth what the current situation is.

[Arbitrageur]

Can't believe he was able to raise 9M ltc and there's not one single investor here on bitcointalk who can explain a little bit more in depth what the current situation is.

there are not many chinese from mainland here. it's like they live on a different planet. they don't use twitter, whatsapp, facebook, linkedin, all different softwares and app. hopefully thanks to this guy they will never use bitcoin and adopt litecoin instead.

[kronkodil]

But if the real motiv of litecoin up price is this, why now the price is up to 5$ ? Can't is for the proximum halving?

[pedrog]

But if the real motiv of litecoin up price is this, why now the price is up to 5$ ? Can't is for the proximum halving?

Halving has no correlation with price.

It's nice to see litecoin holding value, interesting times indeed.

[Foerster]

But if the real motiv of litecoin up price is this, why now the price is up to 5$ ? Can't is for the proximum halving?

Halving has no correlation with price*.

*Citation needed

At least the price of Dogecoin always went up before halving most of the times and went down after the halving. However, since crypto currencies are open complex systems with difficult to estimate supply and demand equations, it is not easy to predict what will happen.
It is good to see that BTC and LTC have finally shown some resistance against their long down trends and I'am convinced that when the real action starts, it will be faster and more extreme than anything we have seen yet and many people that were casually waiting on the sidelines will be caught cold.
The ride never ends.

[statdude]

I got 200 bookings, each is 500 litecoins. How much is that? [end]

Sounds to me he is just one pawn in the scheme as his claim only equals 500,000 LTC

[Arbitrageur]

I've got the video reviewed by a friend who speaks chinese, the translation posted here is correct, the last sentence

I got 200 bookings, each is 500 litecoins. How much is that?

he actually says 20k, not 200, which is the number close to what we know: 9m ltc. we can infer from the number that it's also a video made in July probably between the 6th or 8th of July when he was getting close to 20k bookings.

I'm having the little yellow scheme translated too, so far I've just realized he made the clients buy only through huobi. that's the exchange we need monitoring for more 500 lot transactions.

[Arbitrageur]

the picture showing the scheme doesn't say much. people hvae to buy ltc through huobi, move them to the company, which will give back ltc into an individual account at

https://qianbao.qukuai.com

from there they can go and cash them back at huobi

nothing about yields, and expected time to get them.

[klintay]

well its over now! LTC is on a freight train back to sub $2 usd levels

[Arbitrageur]

the entire presentation of the ponzi:

http://8btc.com/thread-20457-1-1.html

any chinese that can report the whole thing in english?

[kelsey]

the entire presentation of the ponzi:

http://8btc.com/thread-20457-1-1.html

any chinese that can report the whole thing in english?

what do you want to know, that page has various banners and articles about various aspects of litecoin and cryptocurrencies.

down near the bottoms theres stuff on some kinda scheme where you pay 500 ltc and get interest each day (they analogize it as  some kinda of mining machine), and you can get others in and get more, various levels where you earn more etc, its certainly clear on telling your returns but nothing on how they get your returns (go figure), also says its by a german company.

[NorrisK]

They are probably buying back in now that the price is much lower.. Maybe this was their plan all along to be able to pay the promised returns.

[Za1n]

They are probably buying back in now that the price is much lower.. Maybe this was their plan all along to be able to pay the promised returns.

Yes, think about it from this angle. If they did happen to double or even triple the money and can begin paying everyone back, it will only fuel a larger pump on the next phase. If people were investing 500 LTC each back when it was $2, there has been plenty of opportunity to sell back at a profit. It will be even bigger now as all the successful investors will word-of-mouth this "amazing investment opportunity" (the scheme) to family and friends thus recharging the scheme for an even greater run. After all, if the test run was such a success, why walk away from all that profit potential now?

[Arbitrageur]

Thanks to everybody

I'd like to know the yield, or return promised. Frequency of payback, interest rate, and so on. Should be there looking at the pictures.

It's also possible they are trying to buy back what they sold along the way till the top. they must have been a plan to keep the ponzi going, maybe this is just part of it, but I doubt it, looks to me it's over for them.

also

http://8btc.com/thread-20646-1-1.html

http://8btc.com/thread-20676-2-1.html

are two more threads related to the scam. google translator provides a very bad translation, so it's not clear, but from the comments it sounds like they are gone with the money. aren't they?
people not receiving payments and trying to arrange a lawsuit.

final consideration, chinese exchanges must have known what was going on here. Huobi first, but I believe okcoin and btcchina too.
is it possible that this scam hit bitcointalk only on the 9th while the same day coblee was once again still getting the trollbox monkeys excited at btc-e about ltc spectacular rise??