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

[crazy_rabbit]

Franky

Her kids have nothing to do with this. Please take their photos down.

No I like seeing who getting limo rides off my money.

you could still go to the facebook page.

So, what is the use of blurring them? No, Trendon deserves no form of courtesy.

no, he does not, but these kids, who have nothing to do with this, might. im not god or any judge on morality but it seems to me erroring on the side of protecting inocent kids might be the best thing to do here.

They associate with him (and take advantage of his crimes in the process). To me, they aren't that "innocent" no matter their age.

But your opinion is more prevalent I assume. Many people seem to have an urge to protect random children they don't know

its not like the kids are at fualt for having to be around him, its not like they can just leave (once they are 18 i say go for it)

Guilty by association comes to mind

Hey I can see you point, but to me, showing any form of courtesy to Trendon outweighs this by a lot. He stole so much, and I'm not a very forgiving person. (For his sake he better never depend on me for survival. I won't lift a finger.).

Leave the children out of it. Are you going to hold the cashier in the photo responsible for saying, "Have a nice day!" after he pays the bill with your stolen money? You want some crazy person to snatch his kids and then somehow punish them for being legally obliged to be in his care? You logic can lead people to dark places that are far worse then stealing people's money.

[greyhawk]

You logic can lead people to dark places that are far worse then stealing people's money.

He might be there already.

This:

Many people seem to have an urge to protect random children they don't know

certainly reeks of antisocial personality disorder.

[Birdy]

Guilty by association comes to mind

This is one of the worst ideas in human history ever.
Sure they are probably heavily influenced by having a bad father.
But you are denying them any chance of being good (-> being born guilty).
If everyone judges them for something they didn't do, why should they even try to do good?
It's like throwing you into prison, because your grand-grand-grand-father murdered somebody.

You logic can lead people to dark places that are far worse then stealing people's money.

Indeed.

[piotr_n]

I don't think you guys understand what has actually happened here.

Today it is pretty clear what pirate's business was about. IMO, it was not a ponzi scheme.
He was borrowing coins and lending them to other people, though keeping their USD as a collateral - probably with ~10%/week interests, maybe more.
The idea was that in case if they would not return him then coins, he would just buy them on the maker, using the dollars.
What has happened though is that at the very moment when he was trying to do so, his customers informed SEC and SEC has blocked the funds on his bank account - thus he was not able to buy back the coins and return them. And considering the price raise, he never will anymore, even if they will eventually release his funds.

You need to understand that this was probably someone's insidious plan to acquire hundreds of thousands of bitcoins, without moving the market, at a discounted price, and pirateat40 was probably just an unconscious sucker.

Which does not mean that he has not made lots of money on this, assuring people that his business model was safe, while in fact it wasn't - the pirate was just too stupid to see it.

So most important question we should be asking here is: who were his customers - who got the coins?
For me, whoever they were, it seems that like they had some good inside in either US gov of financial institutions (likely both).
It's a shame though that the sucker does not want to blow a whistle, since this is the least he could have done after doing this to people who had trusted him.

[greyhawk]

Lemme tell you how this criminal was not a criminal

Thanks for playing.



You lost. Do you want to try again? (Y/N)

[piotr_n]

If he was a criminal shouldn't he be in a jail?

Obviously they have nothing on him - just like they have nothing on MtGox, but the US authorities still froze 5mln USD on their account and do not want to give it back.

Btc24 - the Polish authorities froze 1mln EUR on their bank account and also do not want to give it back.

If you are saying that pirateat40 was a criminal, then by the same logic, you should be saying that MtGox and Btc24 are criminals, because they also got their funds frozen by authorities.
MtGox had enough money to compensate their customers, but bct24 customers are still suffering - it's not much different than the pirate's case.

[greyhawk]

If you are saying that pirateat40 was a criminal, then by the same logic, you should be saying that MtGox and Btc24 are criminals,

I've been saying that for months. Years even.

[piotr_n]

If you are saying that pirateat40 was a criminal, then by the same logic, you should be saying that MtGox and Btc24 are criminals,

I've been saying that for months. Years even.

Right.
Then you probably work for the authorities

How was he supposed to give back the money if you froze his funds?

[piotr_n]

If you are saying that pirateat40 was a criminal, then by the same logic, you should be saying that MtGox and Btc24 are criminals,

I've been saying that for months. Years even.

To me the only black and white case is gox being thr criminals.

And for me the only black and white case is that you Goat are a mean and cheeky crook, who was selling counterfeited bonds, profiting on the collapse of the pirate's business.
While Nefario was helping you with it.

[piotr_n]

You are the only one who connects nefario to this and i give you credit for that. However you were wrong about the bonds and it was more than clear in that thread.

Technically I only connect Nefario to your scam, and your scam to this...

It is still in that threat.
https://bitcointalk.org/index.php?topic=82573.msg1126157#msg1126157

Anyone can go and see how you were selling more and more PPT bonds, while it was already clear that pirate would not accept any more deposits.
And I also know for a fact that Nefario was your lying bitch, since (unlike you) I do not need to write down a 5 digit number to remember it the next day.

BTW, I remember very clearly how you did not like my comments back then - so much that you went to theymos asking him to remove my posts from your topic.
Which he did... which was weird for me... until I found out that our great admin had a secret share in GLBSE.
But at least he had a dignity to put my comments back, into a different thread - so he wasn't as much of a crook as the two of you, but just a secret investor with a conflict of interest

[piotr_n]

Okay ill let people go back and read that thread to see your umm so called evidence.

OK, just let me help them a bit, so they would not need to wast their time digging through your bullshit.

People, I suggest you to see this post, that should give you a clue about the relations between Goat and Nefario:
https://bitcointalk.org/index.php?topic=82573.msg1143404#msg1143404

And here is the final chart showing the volume of Goat's PPT bonds in circulation at GLBSE (that's the same bonds about which Nefraio said that "The Goat has done nothing wrong", denying the fact that Goat was letting new bonds on the the market, while not being able to deposit the relevant amount at the pirate's bank anymore).



Also here:
https://bitcointalk.org/index.php?topic=82573.msg1161899#msg1161899
https://bitcointalk.org/index.php?topic=82573.msg1173216#msg1173216

[drawingthesun]

What the trial is over and its a ponzi? Link?

Is this true? He is free and out? (With a giant Bitcoin stash hidden away of course)

[franky1]

my main aim was to ask what is the update on the whole case, is it truly already over, is there an upcoming visit to court coming soon, ??

meandering off topic slightly
i used the photo's as they were taken directly from ashley shavers public FB profile with FB dating them this month. showing trendon out and about, which got me wondering what was the latest in the case?

Profile Date Time   2012:01:25 03:41:57
1 year, 9 months, 2 days, 20 hours, 46 minutes, 46 seconds ago

See how warm everybody is dressed, thus possibly proving the date's correct?

no one uses the hidden metadata of files as gospel.. my phone still says its 1997 due to my battery going flat before i get to recharge it and/or having to swap simcards which requires removing the battery entirely. and that meta data if beleived places them in a fastfood venue at 3 in the morning... hmmm maybe not.

but anyways lets not investigate the picture as thats just meandering off topic.. what is the update on the whole case?

[piotr_n]

What the trial is over and its a ponzi? Link?

Is this true? He is free and out? (With a giant Bitcoin stash hidden away of course)

I am telling you: he does not have that stash.
All he might have are his personal coins, maybe a few tens of thousands, which today should be enough for a preposterous life.

But the stash itself was hold by his customers - and he was holding the customers' dollars, as a collateral.
The idea seemed safe, but when it came to then point the customers did not give him back the coins, and pulled the strings making the dollar funds frozen, making him unable to exchange the collateral into bitcoins. And let me remind you that it was with your applause guys, since you were all so happy that SEC froze his bank account.

It was somebody's brilliant plan to purchase hundreds of thousands of coins, without moving the price.
Buying tons of bitcoins with a huge discount by pretending borrowing them with a huge interest.
And I doubt that the somebody was the pirate himself - it had to be someone with good connections in US authorities.
So IMHO the party most responsible for stealing your money is the US government itself - just like in the case of MtGox and Btc24 frozen funds.

[crumbs]

What the trial is over and its a ponzi? Link?

Is this true? He is free and out? (With a giant Bitcoin stash hidden away of course)

I am telling you: he does not have that stash.
All he might have are his personal coins, maybe a few tens of thousands, which today should be enough for a preposterous life.

But the stash itself was hold by his customers - and he was holding the customers' dollars, as a collateral.
The idea seemed safe, but when it came to then point the customers did not give him back the coins, and pulled the strings making the dollar funds frozen, making him unable to exchange the collateral into bitcoins. And let me remind you that it was with your applause guys, since you were all so happy that SEC froze his bank account.

It was somebody's brilliant plan to purchase hundreds of thousands of coins, without moving the price.
Buying tons of bitcoins with a huge discount by pretending borrowing them with a huge interest.
And I doubt that the somebody was the pirate himself - it had to be someone with good connections in US authorities.
So IMHO the party most responsible for stealing your money is the US government itself - just like in the case of MtGox and Btc24 frozen funds.

  U rule!

[piotr_n]

well, laught as much as you want, but try to buy bitcoins to repay your lenders, having the collateral funds frozen, mr smart ass
and who froze the collateral funds? your nazi government - who else?

[crumbs]

well, laught as much as you want, but try to buy bitcoins to repay your lenders, having the collateral funds frozen, mr smart ass
and who froze the collateral funds? your nazi government - who else?

Pwnage!

[piotr_n]

Right. Bring more nazi symbols, to prove that pirateat40 was a scammer and a pure criminal, while US gov had completely nothing to do with stealing your money.

Still, according to my definition to be a scammer one needs to have an intent to scam - and IMHO pirateat40 had no such intent. He was just an idiot and a total tool.

[surebet]

If he was a criminal shouldn't he be in a jail?

http://www.justmugshots.com/texas/collin-county/18816833

[BCB]

piotr_n and goat can you take your pissing match elsewhere.

Frankie,

There is a pending civil case for the Trendon Shavers Ponzi scheme.