Nefario

[Bitcoin Oz]

From watching last months activity on the Bitcoin wolrd it would seem that the Pirateat40 downfall has triggered the scrutiny of various other bitcoin businesses by government authorities.

Now GLBSE is gone. Who will be next?

And are the authorities targeting only securities businesses or bitcoin businesses in general?

Nefario hasn't actually produced any evidence, to shareholders or otherwise, that his recent actions were triggered by a government agency. We were provided no information regarding his reasons for taking these actions, even though he is paying for his lawyer out of GLBSE funds. We must apparently merely take his word for it.

Disclosure: I'm one of the shareholders for which theymos was attempting to sell shares.

I haven't seen any evidence that Nefario has been  paying for "his" lawyer out of GLBSE funds.

He hasnt sent the bill yet

[SebastianJu]

Man... this ongoing crashs and scams move bitcoins more and more into a bad light. I mean scammers dont care... but its a nuisance.

Regarding the stock exchange... if its really illegal to run such thing even when its so small then what could have been done better? I mean when you have a website there is a trace. And SEC could follow it. How should this be protected?

On the other hand... anonymity is scammers best friend too. So when the owner of such platform runs away and no one knows who he was... its even worse than now.

And i dont believe that SEC has to crack it down. I mean its small. If bitfountain wouldnt have glbse they would have sold their shares simply at their own website. Would that need the SEC to be involved? I doubt it. Am i wrong?

I dont understand nefario. Its saturday now but why could he have said a word before? Maybe because he wanted to speak with the shareholders of glbse before? Then again i dont see why he wants to shut it down completely and so not allow to let it live.

He is using the btc for paying lawyer? If thats known... why isnt known why he needs the lawyer? Is this completely managed over the net where no one knows the other?

If nefario only wants to give out shares to identified persons... i think a lot of btc wont be taken. So at the end nefario maybe would be a rich man. At least he starts to take the money for his purpose.

At the end i think i could be lucky maybe. I had 1255 asicminer shares and 0.6btc. And asicminer wants to build a own shareplatform once glbse is dead. But for that at least they have to know the owner of the shares and how much they own.

*sigh* Why didnt i take a look before who nefario refers to? After pirate at 40 i could get this idea...

@Theymos

You said you are managing the cash reserves... so why did you allow that nefario take money for lawyer from there? Or what does this "manage" include?

[smoothie]

GLBSE user funds are more or less safe, but I have bad news from the GLBSE shareholder meeting.

Nefario has, without a shareholder motion and in violation of the bylaws and GLBSE ToS, decided to close down GLBSE. Users will be able to collect deposits only after submitting identity info. A similar system to the one that Goat was forced to use will be provided so that assets can be traded elsewhere.

He is also illegally using user deposits to pay for his lawyer. If he continues, the GLBSE cash reserves (which I manage) will not be enough to cover costs and GLBSE will be in debt to users.

I'm very sorry about this, but those shareholders who are sane are helpless against Nefario and the insane shareholders who for some mind-boggling reason think that closing down GLBSE in this way will help both themselves and GLBSE users.

Since Nefario refuses to give complete details about his legal concerns and he has been acting strangely, I feel that it is somewhat possible that Nefario is working under some sort of plea bargain and is gathering IDs for future prosecution.

Nefario has defrauded me and others in several different ways and deserves a scammer tag.
- The BitcoinGlobal bylaws state that BitcoinGlobal's purpose is to operate GLBSE. By shutting down GLBSE without amending the bylaws, Nefario has violated the bylaws.
- He has stated that he would ignore any motion to remove him as CEO.
- He is knowingly making BitcoinGlobal shares worthless, violating his fiduciary duty.
- He is refusing to release my GLBSE balance without my ID, which I did not agree to.

Since my GLBSE shares are now worthless, it should be obvious that I had no knowledge of this before now.

I urge everyone to never work with Nefario again. A Bitcoin stock exchange is a good idea, though. I hope that someone will create something better than GLBSE and MPEx.

BURNSIDE! COME SAVE US!

[Rarity]

Warning: Moderators do not remove likely scams. You must use your own brain: caveat emptor. Watch out for Ponzi schemes. Do not invest more than you can afford to lose.

[MPOE-PR]

Nefario hasn't actually produced any evidence, to shareholders or otherwise, that his recent actions were triggered by a government agency. We were provided no information regarding his reasons for taking these actions, even though he is paying for his lawyer out of GLBSE funds. We must apparently merely take his word for it.

Disclosure: I'm one of the shareholders for which theymos was attempting to sell shares.

This.

Seems more likely he's mentally insane and thinks he's hearing messages from "the government".

[Smoovious]

All i have to say is lol. Just how many people are scammers on this board? It is amazing.

Unfortunately, intelligence doesn't usually equate to integrity...

-- Smoov

[theymos]

@Theymos

You said you are managing the cash reserves... so why did you allow that nefario take money for lawyer from there? Or what does this "manage" include?

He didn't inform me. He illegally spent GLBSE user deposits with the expectation that he would replace this money from the BitcoinGlobal treasury later. Which he's unfortunately correct about -- I can't withhold the money from him when this means that there won't be enough money for GLBSE users.

But GLBSE doesn't have a lot of money (only about 600 BTC IIRC). If he continues paying for stuff, this money will run out.

[BadBear]

Nefario has defrauded me and others in several different ways and deserves a scammer tag.
- The BitcoinGlobal bylaws state that BitcoinGlobal's purpose is to operate GLBSE. By shutting down GLBSE without amending the bylaws, Nefario has violated the bylaws.
- He has stated that he would ignore any motion to remove him as CEO.
- He is knowingly making BitcoinGlobal shares worthless, violating his fiduciary duty.

Now this is something I can act on. It also shines a new light on previous activites, but that's mostly speculation so I'll leave that for a later time. These are all clear breaches of contract, and several laws for that matter. Nefario doesn't own the company, the shareholders own part of it as well. He shouldn't do this without their consent, especially without even giving them a say via shareholder vote or to amend the bylaws.

I'm talking to theymos for verification of a few things (bylaws, ToS, Nefario's statements), so if anyone has something to say that could affect my ruling, it should be done soon.  

[burnside]

BURNSIDE! COME SAVE US!

I am researching options.  Wish I could move faster, but I need to have a solid business plan which includes an examination of the legal issues.  I'm not going to prison over anything BTC.  

[SebastianJu]

Interesting. So most of the money is invested and securityowner took the bitcoins out. That means it wouldnt work well as a scamproject.

I hope this goes well.

[Martin666]

It just gets messier with the hour...

i can t believe, that he wants to pay a lawyer with the shareholders money !!!
It would be completely different if he would have incorporated GLBSE proper...

GLBSE with Nefario will never gain trust back, also this will have a bad impact on all the mysterious ASIC developers...

[Bitcoin Oz]

BURNSIDE! COME SAVE US!

I am researching options.  Wish I could move faster, but I need to have a solid business plan which includes an examination of the legal issues.  I'm not going to prison over anything BTC.  

A couple of things you can do.

Dont register a domain or a server using credit cards or the like.
Use a fake name.
Dont tie your physical self to the exchange in any way.
If youve done this with litecoinglobal shut it down and migrate to the system i mentioned above.
This is bitcoin

[CJGoodings]

He deserves the "King Of Scammers" tag since more or less made all the other ones possible.

[chrisrico]

BURNSIDE! COME SAVE US!

I am researching options.  Wish I could move faster, but I need to have a solid business plan which includes an examination of the legal issues.  I'm not going to prison over anything BTC.  

A couple of things you can do.

Dont register a domain or a server using credit cards or the like.
Use a fake name.
Dont tie your physical self to the exchange in any way.
If youve done this with litecoinglobal shut it down and migrate to the system i mentioned above.
This is bitcoin

Has the Silk Road had any major controversies, other than whether or not to allow the sale of firearms? Maybe more bitcoin businesses should be taking lessons from that one...

[Ilikeham]

It seems more likely to me he's just been stealing what's been coming in and without proof that he is under legal duress I call pure bullshit.

But that's just me. I simply feel that without evidence he's more likely to be a liar at this point.

[niko]

I haven't seen any evidence that Nefario has been  paying for "his" lawyer out of GLBSE funds.

That's true, but he told us this in the meeting. Even those that agree with Nefario's actions could testify to this.

Thanks for the comment. I'm glad you didn't misunderstand mine.

[vmg3]

If any of this is true?!!?   I just lost all my BTC shit it wasn't much. 

[Bitcoin Oz]

I haven't seen any evidence that Nefario has been  paying for "his" lawyer out of GLBSE funds.

That's true, but he told us this in the meeting. Even those that agree with Nefario's actions could testify to this.

Thanks for the comment. I'm glad you didn't misunderstand mine.

Yes he said this.

[kiba]

So, he decided to screw his reputation with the community in the hope of not getting jailed by the gubernment. This is not going to end well.

[MPOE-PR]

Kludge: Maybe it's time you splurged the hefty sum of 20 bitcoin to move over to the one exchange that actually works. By "actually works" I mean charges 1/4 as much per transaction as GLBSE does, is down an infinity percent less and in general has an infinity percent fewer issues, troubles, problems, defects and so forth.

Nefario: You are obviously unqualified to be anywhere near a project of the complexity of an exchange, even for play money (which I suspect BTC are, for most of you here, at least judging on behavior records). I will make you precisely one offer to buy the thing from you, so you get to actually make some money for all your effort over the past year, as misguided and mismanaged as it may have been, rather than have to walk away from a worthless wreck (like Zou Thong/Amir&co have with Bitcoinica). If you have half the maturity you should have to be involved in all this you will take this offer seriously, and consider your options carefully. Feel free to make contact via pm or in #bitcoin-otc-eu.