[SEC] Ponzi schemes Using virtual Currencies

[Spoetnik]

Released today.. Investor Alert

https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf

So what you guys think ?

PS:
It's a short 3 page guide with little text.

EDIT:
And the "forum" they refer to is guess where ? ROFL

[franky1]

id say its actually a fair warning to investors.
the same warning they give to any investment

id say it acknowledges and legitimizes that bitcoin can be used freely by americans

its not negative about bitcoin... just who may abuse it

virtual currencies, such as Bitcoin, have recently become popular and are intended to serve as a type of money.
they may be traded on online exchanges for conventional currencies, including the U.s. dollar, or used to purchase goods or services, usually online.

We are concerned that the rising use of virtual currencies in the global marketplace may entice fraudsters to lure investors into Ponzi and other schemes in which these currencies are used to facilitate fraudulent, or simply fabricated, investments or transactions.

if they were negative about bitcoin they would say to stay away from bitcoin itself, or that its not to be treated like money.. rather than saying just be aware with who you transact with

[Spoetnik]

Interesting perspective ..actually that never occurred to me eh

[Amph]

i guess it's more easy for them to build up a ponzi using crypto, while enforcing anonimity, the same with criminal that wantonly to move funds or hacker that were never caught

it was said that the vast majority come from russia and their hyip site, which is strange since there the whole crypto it's banned...

[NorrisK]

I see this as something positive. Everybody who has been around here long enough knows there is a multitude of scams going around, but new investors may still need to be warned.

The overall tone is also not negative about bitcoin itself, which is good.

[Pab]

I see this as something positive. Everybody who has been around here long enough knows there is a multitude of scams going around, but new investors may still need to be warned.

The overall tone is also not negative about bitcoin itself, which is good.

Agree with you.I see  that report positive for bitcoin.We everybody know howmany ponzi scheme use bitcoin

Looks like USA regulators are serious about btc

[BADecker]

You really can't blame them. The whole debt money fiat money system is a gigantic Ponzi. The reason it is near failure is that they have used up all the people, and made all the corporations, and loaned/created all the new money that they can possibly do with the idea of supporting the Ponzi.

If we don't get a lot of new people into the world to support the banking Ponzi, or if we can't borrow/create enough more money in reasonable "repayable" amounts, the fiat Ponzi will crash.

Bitcoin is getting us back to a value based system instead of a loan based system. Of course they are going to call Bitcoin a Ponzi. The more Bitcoin thrives, the closer the banking Ponzi comes to dying.

[tobacco123]

I used to participate in one of the "bitcoin investment" with about 10k bits. I knew I was an early "investor" so was quiet happy to wait until ROI and withdraw the amount (~22k bits). The website went on for another 2 month and then disappeared. There are still a few around but I guess I already had some fun so not joining anymore.

[franky1]

it was said that the vast majority come from russia and their hyip site, which is strange since there the whole crypto it's banned...

its not banned in russia.
its not even banned in china

the only legislation in those countries is that basically regulated financial institutions cannot offer it as a product to customers directly or invest in it at the back end of the banks, as their regulations wont insure it..

this does not stop individuals doing their own thing

[robelneo]

It's not new there are many program that re using crypto currency and many more will come I remember if I am right Onecoin is one big mlm /ponzi that capitalize on crypto-currency and another one called starcoin and many more will come many ponzi admin have seen the huge potential of these crypto-currency that they are now abusing it's uses

[Amph]

it was said that the vast majority come from russia and their hyip site, which is strange since there the whole crypto it's banned...

its not banned in russia.
its not even banned in china

the only legislation in those countries is that basically regulated financial institutions cannot offer it as a product to customers directly or invest in it at the back end of the banks, as their regulations wont insure it..

this does not stop individuals doing their own thing

yeah i know i was using the incorrect term there, more appropriate would be restricted or not seen well there, they are either way limiting it massively(in russia at least)

[franky1]

it was said that the vast majority come from russia and their hyip site, which is strange since there the whole crypto it's banned...

its not banned in russia.
its not even banned in china

the only legislation in those countries is that basically regulated financial institutions cannot offer it as a product to customers directly or invest in it at the back end of the banks, as their regulations wont insure it..

this does not stop individuals doing their own thing

yeah i know i was using the incorrect term there, more appropriate would be restricted or not seen well there, they are either way limiting it massively(in russia at least)

america and england and austrialia also prohibits banks from using bitcoin as a consumer product and wont insure it.

there is no difference between russia vs america in regards to bitcoin. basically the exact same financial warning and prohibition memos went to all first world countries..

it was only people and media that mis translated non english countries and so deemed non english countries to be more hostile due to that mis translation

the only difference is america is 3 years+ ahead of russia and 2 year ahead of china in its research and development of government controlled blockchain technology(not bitcoin)..
.. and thats it

[khalized]

Released today.. Investor Alert

https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf

So what you guys think ?

PS:
It's a short 3 page guide with little text.

EDIT:
And the "forum" they refer to is guess where ? ROFL

By itself it not sound strange, virtual currencies (most of it) could improve ponzi schemes, and a "warning" it could be acceptable.
There a lot of people that invest money without understand what type of product they are buying ...

[~Bitcoin~]

I think report cover risk in any type of hyip. They have used virtual currency but this is well known fact about all of those hyip which pay higher interest. Hyip were in past also when there is liberty reserve and perfect money and virtual currency even doesn't exist.

[YoonYeonghwa]

I don't really know about that. But I know ponzi schemes are bad.

[vanobe]

The SEC charged the Bitcoin Savings and Trust (BTCST) as a Ponzi Scheme over two years ago. Late last year Trendon T. Shavers admitted he ran a bitcoin Ponzi scheme and pleaded guilty.

The litecoin pump last year was rumored to be due to a Chinese Ponzi, and now there is rumored to be another another bitcoin Ponzi that closed recently in China. The SEC is only doing its job of trying to protect people from these schemes, it's not cracking down on bitcoin or bitcointalk.


http://www.wsj.com/articles/texas-man-admits-to-bitcoin-ponzi-scheme-1442873692

A Texas man admitted Monday to running a bitcoin Ponzi scheme, which at one time controlled about 7% of digital currency in circulation, in what authorities described as the first such federal criminal securities fraud case.

Trendon T. Shavers, who went online by the name “pirateat40,” pleaded guilty Monday in Manhattan federal court to a charge of securities fraud. Under the plea agreement, a second charge of wire fraud would be dropped.

[BADecker]

I don't really know about that. But I know ponzi schemes are bad.

Ponzi's are bad. But what about your standard store Ponzi?

Take Walmart. The average workers are paid. The supervisors are paid. The assistant managers are paid. The co-managers are paid. The store managers are paid. And the owners are paid. The only people who aren't paid are the customers... except in product, that is.

All of the others are paid off some of the work the average workers do. The average workers are simply paid for work.

If a Ponzi has a product, it is a Multi-Level Marketing business, or a Network Marketing business. The only difference between a Ponzi and MLM is, the customers are also the workers who get paid as well as getting product. To say it differently, there isn't really any difference between Walmart and MLM except that Walmart is at or beyond that worker saturation point.

Now, look at Bitcoin. What is the product in a Bitcoin Ponzi? Isn't it advertising? I mean, all other advertisers get paid. Why not Bitcoin advertisers who both use the product - Bitcoin - and advertise it through their use of it?

Look at Walmart again. Once the Walmart Ponzi has as many workers as it needs, nobody else can get a job there. The workers buy the Walmart products, just like regular customers do. Once a Bitcoin Ponzi is saturated, it doesn't pay for anyone else to try to advertise. After all, everyone in the world already knows about Bitcoin.

The only reason government doesn't like Ponzi's is, Ponzi's mess up their finances for them. If governments were honest and out to serve their people, they would offer their citizens all kinds of info about the stupidity of the various kinds of Ponzi's, and then they would let their people be free.

Bitcoin is not near saturation, but Walmart and all the big store chains are. Yet we don't see government shutting the stores down.

[BTCBinary]

They are just doing their Job and warning people about the possible perils of investing in digital currency. Unfortunatelly today it is still very difficult to find the right investment in digital currency.

[Spoetnik]

It's funny how hard you guys want to put a positive spin on this LOL

May i remind that ALL ALONG the whole entire world thinks Bitcoin is a Ponzi ?
They thought this BEFORE the big run up in price / popularity before late 2013
then later when it died off in popularity they think it's a dead ponzi now..
I know this because i actually went OUTSIDE OF MY HOUSE and talked to REAL PEOPLE.
Then if you look on Google you will see it all over too.. by some highly educated financial professionals.

You guys don't want to hear it but people out there have posted convincing arguments
that Bitcoin is far more like a Ponzi / Pyramid scheme than it is a currency.

In response this forum just chants cheerleader rabble in a giant circle self absorbed bubble.
Sorry guys but your tight nit group of crypto enthusiast opinion are worthless.. the world just doesn't care.

And the problem of perception just gets worse and worse as each year goes by and you all just focus on this forum.
Instead of THE REAL WORLD.

[Bitcoinpro]

Released today.. Investor Alert

https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf

So what you guys think ?

PS:
It's a short 3 page guide with little text.

EDIT:
And the "forum" they refer to is guess where ? ROFL

makes u wonder wat they are really up too