BREAKING: SEC Charges pirateat40 With Running Bitcoin-Denominated Ponzi Scheme

[gweedo]

Round them up. When is payb.tc who is now Hightower, going to get some charges. He is another croward, just changes his name so the heat can't stick. I hope he faces some charges, I hope he is scared like the croward he is.

I am also glad to see my call with the SEC back when it was happening actually lead to charges!

[btceic]

The only question is: where is the money?
Someone obviously took it, and IMO pirateat40 was just a poor sucker, in all this scam.

Didn't he ''invest'' the coins in another ponzi?

You know what? That's a valid point! Maybe not a ponzi, per se, but a business. I believe that Trendon Shavers was the VC that funded BF Labs Inc. I think the SEC should look into Butterfly Labs to make sure that wasn't the case. It sure would explain why BFL never stated who the VC was, in spite of many request.

Phinnaeus,
You need to try harder on this crusade youv'e got going on bfl, do something that really affects their business and then you've got something! Maybe a couple of websites, some adwords campaings etc.

[bitcoindigi]

make me nervous about my money in coinlenders now. my heart jumped when i first read it

you make like 1.8% per month, that's at least nothing too uncommon

[candoo]

maybe we will see the stolen BTC coming back!

hahaha the btc had been paid to other investors.  Some of them cashed out instead of keeping all the profits.

[greyhawk]

some light reading for those of us who was not around a year ago :-)

https://bitcointalk.org/index.php?topic=82849.0
https://bitcointalk.org/index.php?topic=91306.0
https://bitcointalk.org/index.php?topic=103623.0
https://bitcointalk.org/index.php?topic=91661.0
https://bitcointalk.org/index.php?topic=91252.0
https://bitcointalk.org/index.php?topic=101751.0
https://bitcointalk.org/index.php?topic=50822.0
https://bitcointalk.org/index.php?topic=102918.0
https://bitcointalk.org/index.php?topic=91508.0
https://bitcointalk.org/index.php?topic=79294.0
https://bitcointalk.org/index.php?topic=101152.0
https://bitcointalk.org/index.php?topic=103145.0
https://bitcointalk.org/index.php?topic=91779.0
https://bitcointalk.org/index.php?topic=101461.0
https://bitcointalk.org/index.php?topic=100696.0
https://bitcointalk.org/index.php?topic=101528.0
https://bitcointalk.org/index.php?topic=96139.0
https://bitcointalk.org/index.php?topic=96139.0
https://bitcointalk.org/index.php?topic=91607.0

Please tell me you pulled that list out of a folder tagged "Incriminating material in case I need it"

[Phinnaeus Gage]

The only question is: where is the money?
Someone obviously took it, and IMO pirateat40 was just a poor sucker, in all this scam.

Didn't he ''invest'' the coins in another ponzi?

You know what? That's a valid point! Maybe not a ponzi, per se, but a business. I believe that Trendon Shavers was the VC that funded BF Labs Inc. I think the SEC should look into Butterfly Labs to make sure that wasn't the case. It sure would explain why BFL never stated who the VC was, in spite of many request.

Phinnaeus,
You need to try harder on this crusade youv'e got going on bfl, do something that really affects their business and then you've got something! Maybe a couple of websites, some adwords campaings etc.

Funny thing is others were saying the same thing about Pirate till after the fall, then a different tune was heard a playin'.

Do people need to be hit over the fuckin' head to be shown that BFL is not operating on the up-and-up?

[Phinnaeus Gage]

some light reading for those of us who was not around a year ago :-)

https://bitcointalk.org/index.php?topic=82849.0
https://bitcointalk.org/index.php?topic=91306.0
https://bitcointalk.org/index.php?topic=103623.0
https://bitcointalk.org/index.php?topic=91661.0
https://bitcointalk.org/index.php?topic=91252.0
https://bitcointalk.org/index.php?topic=101751.0
https://bitcointalk.org/index.php?topic=50822.0
https://bitcointalk.org/index.php?topic=102918.0
https://bitcointalk.org/index.php?topic=91508.0
https://bitcointalk.org/index.php?topic=79294.0
https://bitcointalk.org/index.php?topic=101152.0
https://bitcointalk.org/index.php?topic=103145.0
https://bitcointalk.org/index.php?topic=91779.0
https://bitcointalk.org/index.php?topic=101461.0
https://bitcointalk.org/index.php?topic=100696.0
https://bitcointalk.org/index.php?topic=101528.0
https://bitcointalk.org/index.php?topic=96139.0
https://bitcointalk.org/index.php?topic=96139.0
https://bitcointalk.org/index.php?topic=91607.0

Please tell me you pulled that list out of a folder tagged "Incriminating material in case I need it"

I don't think so, GH. He took 30 minutes to search this forum. 

[elux]

I've answered your question, Pirate.

Now you answer mine please.

Is there any hard evidence of any value producing economic activity of your operation except taking deposits, paying "dividends" and converting BTC into USD?

i.e. marketing, PR and damage control do not count.

I think it is a simple and fair question that any legitimate business, even anonymous one, should be able to answer quickly and easily.

If I pulled all my influence on the market things would be much different.  Everyone assumes I'm always applying the brakes (ask walls) in the market but the door swings both ways.  I've been present in the market since day one.

Not a shred of hard evidence, just some cheap rhetoric, unfortunately. I've been absent in the market since day two, so what?

You want evidence? LOL, if you knew what I know, I'd be hounding you.

fixed the quotes for ya. np.

How mysterious. Still only cheap rhetoric, though.

let's be objective.

- plenty of evidence of taking "deposits"
- plenty of evidence of paying "dividends"
- no evidence whatsoever of any economic activity and no any viable hypothetical biz models even.
- ALL the signs of a ponzi scheme in abundance.

In any case, we will know everything soon, right, was it 27th of July?
It could fold quicker, though, some unexpected newsflow and change of market conditions could force the matter before that perhaps.

The tide will go out eventually.

Right it's a ponzi you WIN.  Take out all the money you have in my operation.  RUN FOR THE HILLS!!

You don't have a shred of evidence or even an idea of what I do.  I truly don't think I could think as slow as you if I tried.

Keep up your good will!!!! TEACH FEAR!

This was... Ahh, five weeks and change before closing day.

[greyhawk]

I don't think so, GH. He took 30 minutes to search this forum. 

That'll teach me to get my hopes up.

[Phinnaeus Gage]

The only question is: where is the money?
Someone obviously took it, and IMO pirateat40 was just a poor sucker, in all this scam.

Didn't he ''invest'' the coins in another ponzi?

You know what? That's a valid point! Maybe not a ponzi, per se, but a business. I believe that Trendon Shavers was the VC that funded BF Labs Inc. I think the SEC should look into Butterfly Labs to make sure that wasn't the case. It sure would explain why BFL never stated who the VC was, in spite of many request.

Phinnaeus,
You need to try harder on this crusade youv'e got going on bfl, do something that really affects their business and then you've got something! Maybe a couple of websites, some adwords campaings etc.

I'll just add this quote to this one:

Howdy Y'all

So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders.  Most of the information seems to be fabricated by people wearing pointy foil hats.  On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum.  As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch.  I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.

[jackjack]

Do people need to be hit over the fuckin' head to be shown that BFL is not operating on the up-and-up?

Yes

[greyhawk]

I'll just add this quote to this one:

Howdy Y'all

So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders.  Most of the information seems to be fabricated by people wearing pointy foil hats.  On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum.  As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch.  I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.

I like that quote. It's so Zerlan.

[Phinnaeus Gage]

Do people need to be hit over the fuckin' head to be shown that BFL is not operating on the up-and-up?

Yes

Mmmkay!

[Phinnaeus Gage]

I'll just add this quote to this one:

Howdy Y'all

So there seems to be an ever-growing list of topics and links regarding information about what exactly I do to pay my lenders.  Most of the information seems to be fabricated by people wearing pointy foil hats.  On the other hand there are a few respected members of the community that seem to have fallen into the FUD world which has become... this forum.  As you can imagine, knowing what I know about what I do, it's been pretty entertaining to watch.  I must admit, I do enjoy the thrill of getting a reaction from some of these nuts, but there does come a time when you have to stop throwing fuel on the fire.

I like that quote. It's so Zerlan.

You're just saying that because there's an extra space after each period.

You'll love the next quote by Trendon.

Q - Are you running a drug ring and laundering money for Silk Road?

A - Are you kidding me? I live in the US.  If anything I was doing was illegal, my CPA, attorneys, and scariest... my wife would have my head.  So to make it clear, nothing I'm associated with is illegal.

[greyhawk]

I don't think so, GH. He took 30 minutes to search this forum. 

That'll teach me to get my hopes up.

lol, actually I took 5 minutes encrypting that folder an searching there and some time for a little refresher, reading it.

Good, now I feel better.

[Phinnaeus Gage]

To misquote what MNW once wrote about Pirate:

I like Butterfly Labs for one, even if they are running a likely illegal and undercover operation for three reasons:

• They make bank
• They piss everyone else off in how they do it
• No one can stop them because people follow the money
• They don't constantly defend himself on a bullshit unrelated forum, sans Inaba when he's off his meds

What do they call this in the real world again? Oh yea, professionalism.

[moni3z]

I knew he just pissed it all away on gambling and other bullsiht. I bet he has nothing left to show for it except a handful of empty online poker accounts, a car with multiple loans against it, and one unused ticket to Brazil.

I predict the following:

- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back

[uyjulian]

I wonder how bitcoins will be frozen.

[jackjack]

I predict the following:

- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back

[threeip]

I predict the following:

- pirateat40 is so deluded, chronic liar/crazy narcissist he will defend himself
- he will honestly believe he has a chance of not being convicted
- instead of grovelling and pleading out he will lose and get sent away 80+ years
- nobody will get any coins back

You forgot:
-lawyers get richer
-SEC gets 'manual relief' from its AlphaSoup friends

and one unused ticket to Brazil

Let me guess, he spent all this time learning Spanish, only to discover...