Got off the phone with the Guy from the S.E.C

[Shadow383]

I gotta wonder, did Pirate shut down before or after he learned the SEC was investigating him? He's obviously known for some time now.

He shut down on the day the SEC closed Zeek.
Pirate's rates were slightly below those of Zeek (so he'd make a profit passing funds through to there).
Now that the SEC is investigating Zeek they're interested in Pirate.

Coincidence?

[Dalkore]

I gotta wonder, did Pirate shut down before or after he learned the SEC was investigating him? He's obviously known for some time now.

I would assume he got a visit and they sat down and had a long conversation.  That is how it usually works.

[Fjordbit]

He shut down on the day the SEC closed Zeek.
Pirate's rates were slightly below those of Zeek (so he'd make a profit passing funds through to there).
Now that the SEC is investigating Zeek they're interested in Pirate.

Coincidence?

Hmmm, I thought this wasn't true, but actually it does fit. Zeek apparently was 1.5 daily, or 10% weekly and I seem to recall pirate saying something like his process makes 10% and he pockets the difference. There's also that whole thing about him wanting the price to be stable.

Also, everyone who is asking about BFL, THERE IS NO CONNECTION. The OP brought up BFL with the investigator and the investigator blew him off, saying he should go to the FTC and the GA. But I'm telling you right now the GA isn't going to care about people getting their boxes 5 weeks late. Every case I know of, BFL always offered a refund when it was late (in my case, even in advance of the due date). It's a complete non-starter.

[BitcoinINV]

I told you I would answer questions it later,

First off I called the guy just to see if the email was true. This was all after the asked about the dividend payments. I called the guy left a voice mail, and told him to email me. I went about my day, I was about to get in the shower when he called back. He identified himself as Sr Investigator in charge, of the S.E.C and was a lawyer yadda yadda. He then Asked me first about the GLBSE, fee's, how you got money on the accounts, asked about the Mt.gox how you added funds, Hit hard on how you withdraw funds, and the amounts. Asked me about butterfly labs, Look you slow facks he has been reading the forum for a while now, with help from some interns. When I told him my name he already knew I had a mining company. Like investigators always do they ask questions to answers they already know. I told him about sonny and how much we think they have in USD. And they had not posted a picture or anything of the product they were selling, He told me to submit a report with the FTC and the NC attorney general. We talked about PPT's in depth about if people knew what they where investing in, If I knew. Yes I had some exposure but only 2 btc on a insured pass through, lol
I told him, about the system why it was called a Pirate Pass, He asked if BCST was ever pirate bank or something like that. I said I had no clue it was before my time.

If you want to tell your part here is his office direct line
Philip Moustakis  Senior Attorney (212) 336-0542  moustakisp@sec.gov
The dispatch center number is 212 336 1100
moustakisp@sec.gov

I had no intent to do anything but make sure the email was real, I usually check all that crap who comes on the forum. Its just I don't trust a 1 of you greedy pigs lol JK kinda

I'm Going to ask him join under his name, so you all can attack him and not me lol

[Gavin Andresen]

Get legal advice now.  Even if you're cleared of any wrong-doing, the cost of complying with investigations by financial regulators can be devastating.

+1

And I'd say the same for anybody who has offered shares on GLBSE; I am not a lawyer, but you should talk to a lawyer about whether or not you might have broken some laws you had no idea existed, and if you did, what you should or shouldn't do about it.

[sgravina]

I was curious too.  I called the lawyer at 5:00 pm EST and he picked up right away.  He recorded our call and had an intern in the room with him.  I answered all his questions and he answered most of mine.  I told him how much I had invested in PPTs (883 BTC) and how much I had recovered (455 BTC).  He wanted to know how I got my GLBSE account.  He wanted to know the terms of each PPT contract.  I told him.

He told me that the SEC can investigate any security.  That securities do not have to involve dollars.  He cited two supreme court cases in which a security was not a dollar instrument one of which involved oranges.  He said that most contracts promising a return are securities unless there are specific court decisions that say otherwise.  He mentioned Mortgages and car loans as not securities.

Questions he would not answer: How did the investigation start?  How many people are working on the investigation?

He implied that he has investigated other Ponzi schemes.

He hinted that he has talked to a lot of people.  He was surprised at how young some of the people contacting him were.

He said that my explanation of a bitcoin wallet was the best he has heard so far.  There is a lot he still doesn't understand about bitcoins. I just said something simple about public keys and private keys.  Why can't all you other informants explain things better?

[galambo]

Best of luck to all involved.

[Shadow383]

I hope this doesn't bring down GLBSE...

[teamhugs]

Is there a case where the registrar was based outside the United States and the .com was shut down by the US Government? The best example to the contrary is thepiratebay.org where the PIR registry is based in the United States but the registrar is not. GLBSE.com is not registered by a US based registrar.

The US Govt claims all .com, .net, .cc, .tv and .name domains fall under US jurisdiction. Source from http://www.wired.com/threatlevel/2012/03/feds-seize-foreign-sites/.

I believe .info and .org also fall under US jurisdiction based on the contract-holder with ICANN. The contract with ICANN is what matters, not where you bought your domain.

[Nefario]

I hope this doesn't bring down GLBSE...

It will be fine, for several reasons, to a large extent a lot of whats traded on GLBSE would fall under the new croudsourcing legislation that's come out.

That takes care of Americans who've used GLBSE to raise BTC for projects. I would say the only worry would be to people who've run scam assets.

GLBSE itself is based in the UK, and comes under FSA regulation which is something we're working on.

[BitcoinINV]

I enjoy GLBSE, I hope it don't either. From the feel of what I got from him is, he was after pirate, and seeing if the PPT operators had any fault in it. Wanted to know what is going on with BFL. Then was looking or money laundering areas, disguised on the exchange. It seems lots of people have talked to this guy I was just the first lol. Thanks for filling my inbox.....

[gweedo]

I enjoy GLBSE, I hope it don't either. From the feel of what I got from him is, he was after pirate, and seeing if the PPT operators had any fault in it. Wanted to know what is going on with BFL. Then was looking or money laundering areas, disguised on the exchange. It seems lots of people have talked to this guy I was just the first lol. Thanks for filling my inbox.....

Where is the papers you filed? You do know the S.E.C has nothing to do with this, and you would better off contacting the IRS before S.E.C. Another person trying to create FUD, for benefit. Plus I am surprised the S.E.C would even discuss this since it has nothing to do with gold, or USD. I feel your lying I want proof you even made the call, and someone talked to you. Why didn't you record it? Any smart person would have hit record and let the person know.

Took them 20yrs to make a case against madoff and pirate is already getting the look at. If you believe any of this your a fool.

[Nefario]

Well looking quickly, the SEC does investigate and prosecute ponzi schemes. I thought that would be the FBI's department (fraud).

[BitcoinINV]

Numbers above call him yourself lol Email whatever get off my nuts, if you want copies from me gweedo. Use the U.S. Freedom of information act, they will be there in about a week.

Nefario Ill email you everything I can recall if you would like.

[galambo]

Well looking quickly, the SEC does investigate and prosecute ponzi schemes. I thought that would be the FBI's department (fraud).

The SEC is responsible for civil litigation of securities fraud.

The following organizations are responsible for criminal enforcement of fraud :

Department of Justice Federal Bureau of Investigation
United States Postal Inspection Services
Internal Revenue Service Criminal Investigation Division
United States Secret Service

[Shadow383]

I hope this doesn't bring down GLBSE...

It will be fine, for several reasons, to a large extent a lot of whats traded on GLBSE would fall under the new croudsourcing legislation that's come out.

That takes care of Americans who've used GLBSE to raise BTC for projects. I would say the only worry would be to people who've run scam assets.

GLBSE itself is based in the UK, and comes under FSA regulation which is something we're working on.

Good, because I have a listing I'm considering  

[BitcoinINV]

Numbers above call him yourself lol Email whatever get off my nuts, if you want copies from me gweedo. Use the U.S. Freedom of information act, they will be there in about a week.

Nefario Ill email you everything I can recall if you would like.

I want someone from NY to go to the S.E.C office and have the person video tape the convo. Cause I am not buying this, it smells of weak facts and just good old FUD. Plus your a clown anyway so I take what you say with a grain of salt. I will be calling myself, with my lawyer.

Call then come back and tell us please, then you can say sorry for being your normal turd self and doubting me.

Read the whole post as well other people have called, and people have been mailing me that called as well.

[tiberiandusk]

OP cannot even right a few paragraphs of text in correct English and with internal consistency. Not much of a source.

However, if Pirate is going to jail that is very bad news indeed

Yeah, for Pirate. That scam was hilarious to watch unfold though. Thanks for the free entertainment suckers.

[PatrickHarnett]

http://www.sec.gov/news/press/2012/2012-112.htm

Bitcoin would be small stuff for Philip after his previous case.

[Nefario]

http://www.sec.gov/news/press/2012/2012-112.htm

Bitcoin would be small stuff for Philip after his previous case.

The guy might have a genuine interest in bitcoin...besides him investigating pirate as part of his job.