DeathAndTaxes
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Gerald Davis
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July 23, 2013, 11:11:30 PM Last edit: July 24, 2013, 12:55:48 AM by DeathAndTaxes |
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The SEC should have deferred to BTCTalk for punishment. A bunch of fucking idiots who believed 7% weekly returns are a possibility should be happy with their scammer tag above his avatar. It would be a real shame if all of the fucking morons who threw their bit at such stupidity were able to recoup anything.
They won't. Reading between the lines, Pirate lost most (90%+) of the stolen funds day trading. He siphoned off ~150K BTC of victims funds (~700K BTC deposited, ~550K BTC paid back as withdrawals & interest). At the time 150K BTC was worth >$1M yet he had trading losses and withdrew less than $150K from the exchange account. So most of what was stolen is either a)imaginary interest which is never coming back or b) money Pirate lost playing day trader. Of the remaining $150K I would imagine he has probably wasted a good chunk of that. Say there is $50K left, remember this was a BTC based scam and the price of BTC has risen 10x to 15x since then. Today $50K/$100 ea = 500 BTC. 500 BTC out of ~150,000 BTC stolen isn't much of a recovery. TL/DR Pirate stole siphoned off ~150,000 BTC and best case scenario the feds might be able to recover 500 BTC (0.3%). The feds may simply seek in reim forfeiture as the entire operation violated federal law and victims will never see a dime. Not saying it is fair but honestly we are talking a 99% to 100% loss for investors.
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simonk83
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July 24, 2013, 12:17:54 AM |
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Excellent news, hopefully he gets plenty of time in a nasty place ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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lenny_
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DARKNETMARKETS.COM
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July 24, 2013, 12:30:25 AM |
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Wow! I didn't believe it first. Was he so stupid to get busted?
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nimda
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July 24, 2013, 01:38:48 AM |
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I'm trying to dig up that email that I got from the SEC...
Ah yes. 2012-09-24
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ibminer
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Goonies never say die.
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July 24, 2013, 01:53:15 AM |
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This thread makes me happy ![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
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btc237ftw
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July 24, 2013, 02:06:12 AM |
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What, if at all, impact do you think this will have on the price of BTC?
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razorfishsl
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July 24, 2013, 02:23:34 AM |
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Shavers raised at least 700,000 Bitcoin in BTCST investments, which amounted to more than $4.5 million based on the average price of Bitcoin in 2011 and 2012 when the investments were offered and sold. Today the value of 700,000 Bitcoin exceeds $60 million. LOL.... if he had only offered a 'yearly' return of say 200% everything would have been clean...
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fenican
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July 24, 2013, 04:16:12 AM |
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When I saw the story, I thought the feds had finally busted BFL. Perhaps some other day
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bitrick
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July 24, 2013, 04:17:08 AM |
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we should all go visit him in prison and get our last laugh!
IANAL, but it looks like a civil complaint - a lawsuit seeking an injunction, disgorgement of ill-gotten gains, and penalties. It also seeks a finding that the defendant violated securities law, but I don't know if that means this case could result in jail time. Does anyone know if there will be a separate criminal action?
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Phinnaeus Gage
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Bitcoin: An Idea Worth Spending
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July 24, 2013, 04:52:21 AM |
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Excellent news, hopefully he gets plenty of time in a nasty place ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif) I'm guessing a year--time served--and a fifty buck fine, half the amount that Sonny Vleisides got for ripping off poor little old ladies totally millions with his lottery scheme. Reason? Trendon did this to fellow bitcoiners ONLY! Not a single non-bitcoiner lost a single satoshi with his scheme. Think about that for a second. Enjoy the following: This is a great exercise, I just hope people stay the course and realize this is not just, " someone did something wrong in the past let's forget about it. "
The guy pulled a multi-million dollar scam and people here and elsewhere have invested hundreds of thousands of dollars in upfront money which can be EASILY stolen since the bulk of it is in BTC.
I have heard many of the same excuses so far in this matter which were used to justify pirate40's behavior. Stop being so naive and understand this is not just someone getting arrested in the past for a minor crime.
Any legitimate business owner would have to answer to this in the real world.
I hope it works out and if BFL has good intentions then this should end the criticism's of their company once and for all.
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gamer4156
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July 24, 2013, 05:02:28 AM |
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Yall better hope this case gets dismissed on a 12b measure.
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jbreher
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lose: unfind ... loose: untight
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July 24, 2013, 05:35:21 AM |
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What, if at all, impact do you think this will have on the price of BTC?
SEC now thinking that BTC is legit will over all be bullish IMO. Let's all be careful for which we ask. I'm thinking the SEC has already built a case game plan that tarnishes the entire concept of free currencies by painting them with a broad brush of nefariousness, piracy, drugs, flag-burning, cannibalism, and kiddie porn. For the record, I lost a not-insignificant sum in the BTCST debacle. I just think we need to be rather discerning in whatever cheerleading for the SEC it is in which we engage.
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Anyone with a campaign ad in their signature -- for an organization with which they are not otherwise affiliated -- is automatically deducted credibility points.
I've been convicted of heresy. Convicted by a mere known extortionist. Read my Trust for details.
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Stunna
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Primedice.com, Stake.com
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July 24, 2013, 05:39:15 AM |
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This is great news but I doubt any victim is going to see anything returned to them. Hopefully he'll end up in jail and justice will be served.
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Realpra
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July 24, 2013, 06:04:38 AM |
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What, if at all, impact do you think this will have on the price of BTC?
SEC now thinking that BTC is legit will over all be bullish IMO. Agree, this screams: "The government will help keep you and your Bitcoin safe" (while strangling you with regulation, but anyways...)
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QuestionAuthority
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You lead and I'll watch you walk away.
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July 24, 2013, 06:31:45 AM |
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Investors will get nothing back, Shavers will get a slap on the wrist and will retire on the 100k Bitcoins he gambled (wink wink).
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jubalix
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July 24, 2013, 10:31:28 AM |
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make me nervous about my money in coinlenders now. my heart jumped when i first read it
coin lenders is at a much lower rate than 7% per month!!!!
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danieldaniel
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July 24, 2013, 11:11:40 AM |
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What, if at all, impact do you think this will have on the price of BTC?
SEC now thinking that BTC is legit will over all be bullish IMO. Let's all be careful for which we ask. I'm thinking the SEC has already built a case game plan that tarnishes the entire concept of free currencies by painting them with a broad brush of nefariousness, piracy, drugs, flag-burning, cannibalism, and kiddie porn. For the record, I lost a not-insignificant sum in the BTCST debacle. I just think we need to be rather discerning in whatever cheerleading for the SEC it is in which we engage. People use fiat for that stuff too. Btc was never going to be more clean than the usd. Im not happy the sec is doing this but for the markets and over all acceptance i think its bullish. Just my thoughts. Why wouldn't you be happy that the SEC made a complaint against Trendon? I think that it's great, as more people will view the currency as "legit" instead of "play money" if it actually gets regarded as real money in the court system.
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bitcool
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Live and enjoy experiments
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July 24, 2013, 12:26:32 PM |
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That refers to the monthly payouts i think.
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