New Josh Zerlan scam: BFLS.RIG

[Micon]

Abstract:  Josh Zerlan sold a security named BFLS.RIG to collect pre-order money for a BFL Minirig (meta-fail, I know).   He issues shares at .7 btc per and promised investors the profits from the mining machine.  Here is the original thread, now locked to prevent the investor anger from being expressed:

https://bitcointalk.org/index.php?topic=89902.0

The IPO was for .7 btc per share:

IPO share price is going to be .7 BTC per share, although I am taking some limited orders for pre-IPO at .6 per share at the moment.

1+ years of BFL delays, investors became angry.  One day without warning Zerlan decided to close the security and made the following statement:

I have paid out the final payment for BFLS shares, everyone should have received .026 BTC per share.

BFLS and it's derivative are now closed permanently.  Server, I'm sorry if this upsets you, but it really is the best thing for everyone going forward and nets a tidy profit for everyone who held shares.  Each $600 units worth of shares has paid back $759.2 + whatever it's earned over it's lifetime, which is not an insignificant amount and is > 100% profit on the investment.  I think that's pretty good for a little over a year, personally.

I bolded what I thought was HorseRider's best argument - that investors were purchasing bitcoin earning machines, not USD debt notes. 

WTF, Inaba. We have paid you Bitcoin, not USD. We buy bitcoin earning machines from you, but not a USD debt notes. How can you end the contract without the consensus of the other side. We are supposed to have ASIC mining machines to mine bitcoin for us.

I am going to write the SEC official a letter complaining about this. You have issued the securities without registration and now you have scammed the security holders.

We all know Josh Zerlan's statements are generally devoid of logic, but him taking in .7 btc per share and paying out .026 btc per share and congratulating everyone on a 100%+ profit really takes the tamale for me personally.  The thread-lock is cake icing.  Don't worry, he's off purchasing more BFL advertising on this forum as we speak & Theymos refuses to curtail this cancer in our industry.

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[Deprived]

Well technically he had the right to close it at any time:

"Should mining become unprofitable or other circumstances cause the operator to be unable or unwilling to perform his duties, sale of all hardware and equal distribution of funds will commence according to the number of shares held by each individual."

So all he needs to do is prove he sold the hardware and properly discharged his fiduciary duty to his fellow owners by obtaining the best possible price for it.  So let's see Josh post links to his request for bids/auction and receipts for the sale of hardware then this unfortunate matter can be laid to rest.

[HorseRider]

Yes, I agree with OP. Josh is scamming on the BFLS.RIG

As the IPO agreements show, the issuee of the security are offered to have BFL's mining rigs to mine Bitcoin. The owners of the BFLS.RIG take most of the risks to wait the Mini rig until recently. Josh should get the mining rigs and mine for the BFLS.RIG owners. However, he chose to end this contract at the beginning point where it starting to generate revenue.

Josh has no right to end the contract in this way. As he can mine. The mining business is still profitable.

Josh did not sell the asset at a fair market value. He is stealing from the BFLS.RIG owners.

Josh has claimed that BFL did not give the mining rigs owned by BFLS.RIG to him. He has given no solid proof that Butterfly Labs has really done this. It is highly likely that he had already get the mining rigs and steal them from BFLS.RIG.

I go with that Josh should be labelled as a scammer.

[Phinnaeus Gage]

Yes, I agree with OP. Josh is scamming on the BFLS.RIG

As the IPO agreements show, the issuee of the security are offered to have BFL's mining rigs to mine Bitcoin. The owners of the BFLS.RIG take most of the risks to wait the Mini rig until recently. Josh should get the mining rigs and mine for the BFLS.RIG owners. However, he chose to end this contract at the beginning point where it starting to generate revenue.

Josh has no right to end the contract in this way. As he can mine. The mining business is still profitable.

Josh did not sell the asset at a fair market value. He is stealing from the BFLS.RIG owners.

Josh has claimed that BFL did not give the mining rigs owned by BFLS.RIG to him. He has given no solid proof that Butterfly Labs has really done this. It is highly likely that he had already get the mining rigs and steal them from BFLS.RIG.

I go with that Josh should be labelled as a scammer.

Unless I missed the memo, theymos discontinued the scammer tag practice.

[MPOE-PR]

Unless I missed the memo, theymos discontinued the scammer tag practice.

More like theymos discontinued the forum. It's pretty much sockpuppet central down here.

[sublime5447]

He is tagged as a scammer, I know it is not big read x's but works fine for me. Just needs to be next to your name at all times not just under the trading section.  

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