2013-07-23 Mainstream Media: SEC Busted Bitcoin Ponzi Scheme

[Arvicco]

Mainstream media picking up the story. Yes, yes, it's "Bitcoin Ponzi Scheme" all over again:

2013-07-23 CNN - Bitconned: SEC busts alleged Bitcoin Ponzi scheme
http://money.cnn.com/2013/07/23/investing/bitcoin-ponzi-scheme/

Ironically, investors who had simply bought and held bitcoins during the period the alleged Ponzi scheme was in operation would have made a killing. While one bitcoin was worth about $6.56 on average between September 2011 and September 2012, they were valued Tuesday at $95.30 each.

2013-07-23 NY Times: SEC Says Texas Man Operated Bitcoin Ponzi Scheme
http://dealbook.nytimes.com/2013/07/23/s-e-c-says-texas-man-operated-bitcoin-ponzi-scheme

2013-07-23 Wired: SEC Says Man Named ‘The Pirate’ Ran Bitcoin Ponzi Scheme
http://www.wired.com/wiredenterprise/2013/07/sec-says-man-named-the-pirate-was-running-bitcoin-ponzi-scheme/

2013-07-23 CBS news: SEC accuses Texas man of running Bitcoin Ponzi scheme
http://www.cbsnews.com/8301-205_162-57595130/sec-accuses-texas-man-of-running-bitcoin-ponzi-scheme/

2013-07-23 NBC news: SEC says Texas man ran Bitcoin Ponzi scheme
http://www.nbcnews.com/business/sec-says-texas-man-ran-bitcoin-ponzi-scheme-6C10722287

2013-07-23 24x7 Wall Street: More Bad News for Bitcoin: The SEC and the Bitcoin Ponzi Scheme
http://247wallst.com/banking-finance/2013/07/23/more-bad-news-for-bitcoin-the-sec-and-the-bitcoin-ponzi-scheme/

2013-07-23 Washington Post: SEC sues Texas man over alleged Bitcoin Ponzi scheme
http://www.washingtonpost.com/business/bitcoin-ponzi-scheme-alleged-by-sec-in-lawsuit-against-texas-man/2013/07/24/232a764e-f3c0-11e2-81fa-8e83b3864c36_story.html

2013-07-23 Wall Street Journal: SEC Charges Texas Man in Bitcoin-Related Ponzi Fraud
http://stream.wsj.com/story/markets/SS-2-5/SS-2-284596/
http://online.wsj.com/article/BT-CO-20130723-708995.html?mod=googlenews_wsj

2013-07-23 Financial Times: Texan accused over alleged Bitcoin Ponzi scheme
http://www.ft.com/intl/cms/s/0/f5c0b9ea-f3cc-11e2-942f-00144feabdc0.html#axzz2ZwBI1gNI

2013-07-24 Reuters: US SEC warns of Bitcoin scams, accuses Texas man of Ponzi scheme
http://in.reuters.com/article/2013/07/23/usa-sec-bitcoin-idINL1N0FT12E20130723

2013-07-24 ComputerWorld: SEC charges Texas man with running Bitcoin Ponzi scheme
http://www.computerworld.com/s/article/9241010/SEC_charges_Texas_man_with_running_Bitcoin_Ponzi_scheme

2013-07-24 Guardian: Bitcoin: man charged over alleged multimillion-dollar Ponzi fraud
http://www.guardian.co.uk/technology/2013/jul/24/bitcoin-alleged-ponzi-fraud

Out of the bunch, I like the Guardian piece the most. And seriously, why is no one calling Madoff et al "US Dollar Ponzi Scheme"? Hey look, it only took a year after this ponzi collapsed for the SEC to notice it. Wow! Thanks, SEC - we are so grateful your watchful agents are on top of the things!

[Mike Hearn]

Would you rather nothing happen to Shavers at all?

[Kluge]

Would you rather nothing happen to Shavers at all?

What's actually happened to Pirate so far?

[greyhawk]

Would you rather nothing happen to Shavers at all?

What's actually happened to Pirate so far?

He got scammer tagged, that's gotta count for something, right?


OP, have you thought about putting all of these threads into a single one like this?

2013-07-23 Wired/WS24/NY TIMES/BI/etc: SEC Investigates Bitcoin Ponzi Scheme

[aigeezer]

OP, have you thought about putting all of these threads into a single one like this?

2013-07-23 Wired/WS24/NY TIMES/BI/etc: SEC Investigates Bitcoin Ponzi Scheme

or this?...

2013-07-23 Various media: SEC Investigates Old Ponzi Scheme - BTC Users Not Affected

Seriously though - the mass effect of all those vile headlines will be strong. The takeaway for millions will be "BTC Ponzi Scheme", exactly as the media intend. Ugly stuff. Big media are not the friend of BTC.

[boomerlu]

While the press is bad, the news itself is positive.

I had assumed BTC scammers would never be tracked down. That the SEC would actually care and find the guy adds legitimacy.

[Arvicco]

OP, have you thought about putting all of these threads into a single one like this?

2013-07-23 Wired/WS24/NY TIMES/BI/etc: SEC Investigates Bitcoin Ponzi Scheme

On a second thought, it's a good idea: let's have all the mainstream press coverage of the event in one place.

[Logik]

I wonder how many really ignorant people will scan the headlines and briefly think, before moving on to the next headline, "oh, I remember hearing about that Bitcoin thing a while back. So, it turns out it really was a ponzi scheme and it was orchestrated by this one dude in Texas. I guess that's the end of that."

It hurts my poor mind to consider such things

[freedomno1]

I wonder how many really ignorant people will scan the headlines and briefly think, before moving on to the next headline, "oh, I remember hearing about that Bitcoin thing a while back. So, it turns out it really was a ponzi scheme and it was orchestrated by this one dude in Texas. I guess that's the end of that."

It hurts my poor mind to consider such things

Your thought made mine facepalm
I agree it does hurt my mind to consider such things

[splnkr]

I think there's a lot of overreaction to this news.

First of all, learn how news works these days. Headlines look the same across so many outlets because they all get their news from the same meta-providers like AP and Reuters.

Also, if people that scan headlines and jump to conclusions are the people you want to join the Bitcoin community, I wonder why (unless you want to be the next Pirateat40).

Lastly, for people that do actually understand what this is all about, it INCREASES confidence in Bitcoin that there is some possibility of retribution for bad apples in the scene.

I read it as good news, even if the terms "Bitcoin" and "Ponzi Scheme" both appear in the headlines.

[freedomno1]

I think there's a lot of overreaction to this news.

First of all, learn how news works these days. Headlines look the same across so many outlets because they all get their news from the same meta-providers like AP and Reuters.

Also, if people that scan headlines and jump to conclusions are the people you want to join the Bitcoin community, I wonder why (unless you want to be the next Pirateat40).

Lastly, for people that do actually understand what this is all about, it INCREASES confidence in Bitcoin that there is some possibility of retribution for bad apples in the scene.

I read it as good news, even if the terms "Bitcoin" and "Ponzi Scheme" both appear in the headlines.

Well our goal is that even idiots will try it to build up the economy with their real cash since they can't payday loan easily XD