Diablo Mining Company Aftermath

[pascal257]

Since DiabloD3 is trying to censor us, I figured to start a discussion about DMCs closing.

DiabloD3 decided to close his operation on Oct. 09 after an announcement on BitFunder. This is his announcement:

https://bitcointalk.org/index.php?topic=77469.msg3304465#msg3304465]What this means for Diablo Mining Company:

The SEC has gone after BitFunder (ab)using the legal process.

The SEC will go after all domestic and foreign Bitcoin stock markets that do business with Americans or American companies.

DMC is from America.

The majority of DMC shareholders are from America.

SEC rules generally prohibit foreign investors unless you jump through hoops.

DMC will no longer be allowed to trade on BitFunder.

DMC will no longer be able to pay dividends or participate in any form of share buyback.

Due to the fact that the SEC is trying to obliterate any Bitcoin startups by whatever means necessary, and that DMC has far exceeded its goal to payback investors, this marks the end of share buyback.

It is unlikely that Yochdog or Namworld will pay anything they owe to DMC. If anyone wants to buy their debt from me, they are welcome make an offer on a significant fraction of what is owed, however I believe it is unlikely anyone will. If this offer is completed before November 1st, and BitFunder hasn't shut down and hasn't delisted DMC, it will be paid out to the remaining shareholders.

As per the shareholder contract, DMC is now closing and liquidating.

The last 3,947 shares can still be traded 11:1 for ASICMINER shares until BitFunder shuts down or delists DMC or before November 1st. Anything remaining will be used to resolve DMC's debt.

Between 158% and 183% of the original investment has been repaid.

Although DMC has failed at its original goals, I wish everyone else luck.

The announcement was neither posted on BitFunder nor were there any reminders. During that time, a lot of discussion broke regarding BitFunder and thus the post about liquidation of DMC was unrecognized by many shareholders.

According to public records 2789 shares are still unredeemed.

On Nov 3rd DiabloD3 announced the invalidation of remaining DMC shares:

Diablo Mining Company is now closed. Any shares not redeemed before November 1st are now void.

In my opinion he breached his contract by voiding the shares. It does not say anything about a deadline and invalidation of shares in the contract.

Each share represents 0% of the ownership in the company assets. In the event of liquidation, 100% of the revenue from sales of the assets and 100% of the growth fund, minus any expenses incurred from the operation or liquidation of the company will be paid to shareholders.

He effectively stole 2789 shares from his share holders. Given the 11:1 ratio and estimated value of BTC.5 of ASICMINER shares thats BTC126.5.

[zy02264]

My suggestion is go get a lawyer if

1. You are an American,
2. Contract was broken or any tort there.

This would be a easy case.

Or I don't know what you can do as I have 10 coins stuck in Ukyo's Weexchange.

As BTC goes higher and higher, we will see more and more people lose their dignity.

But I see this as a good thing. BTC worth nothing if it cannot figure out a way to build trust on selfish rather on dignity.

[iCEBREAKER]

Since DiabloD3 is trying to censor us, I figured to start a discussion about DMCs closing.

DiabloD3 decided to close his operation on Oct. 09 after an announcement on BitFunder. This is his announcement:

https://bitcointalk.org/index.php?topic=77469.msg3304465#msg3304465]What this means for Diablo Mining Company:

The SEC has gone after BitFunder (ab)using the legal process.

The SEC will go after all domestic and foreign Bitcoin stock markets that do business with Americans or American companies.

DMC is from America.

The majority of DMC shareholders are from America.

SEC rules generally prohibit foreign investors unless you jump through hoops.

DMC will no longer be allowed to trade on BitFunder.

DMC will no longer be able to pay dividends or participate in any form of share buyback.

Due to the fact that the SEC is trying to obliterate any Bitcoin startups by whatever means necessary, and that DMC has far exceeded its goal to payback investors, this marks the end of share buyback.

It is unlikely that Yochdog or Namworld will pay anything they owe to DMC. If anyone wants to buy their debt from me, they are welcome make an offer on a significant fraction of what is owed, however I believe it is unlikely anyone will. If this offer is completed before November 1st, and BitFunder hasn't shut down and hasn't delisted DMC, it will be paid out to the remaining shareholders.

As per the shareholder contract, DMC is now closing and liquidating.

The last 3,947 shares can still be traded 11:1 for ASICMINER shares until BitFunder shuts down or delists DMC or before November 1st. Anything remaining will be used to resolve DMC's debt.

Between 158% and 183% of the original investment has been repaid.

Although DMC has failed at its original goals, I wish everyone else luck.

The announcement was neither posted on BitFunder nor were there any reminders. During that time, a lot of discussion broke regarding BitFunder and thus the post about liquidation of DMC was unrecognized by many shareholders.

According to public records 2789 shares are still unredeemed.

On Nov 3rd DiabloD3 announced the invalidation of remaining DMC shares:

Diablo Mining Company is now closed. Any shares not redeemed before November 1st are now void.

In my opinion he breached his contract by voiding the shares. It does not say anything about a deadline and invalidation of shares in the contract.

Each share represents 0% of the ownership in the company assets. In the event of liquidation, 100% of the revenue from sales of the assets and 100% of the growth fund, minus any expenses incurred from the operation or liquidation of the company will be paid to shareholders.

He effectively stole 2789 shares from his share holders. Given the 11:1 ratio and estimated value of BTC.5 of ASICMINER shares thats BTC126.5.

This is all true.

For months, Diablo had been looking for an excuse to try to steal our BMC shares.  Fortunately yochdog is a stand-up guy and publicly humiliated him for the first attempt, as summarized here:

[iCEBREAKER]

Let me review this......I would hope Diablo would change his position in light of the substantial dollar payout coming to his holdings. 

An email is going out this afternoon. 

All correspondence will be handled there. 

Hi Yochdog,

On behalf of DMC shareholders who bought shares because of its ostensible exposure to BMC, please allow me to offer you a bribe, charity donation, or otherwise persuade you to NOT give a singe Satoshi to Diablo.

To re-cap:

Back in May, Diablo declared his BMC shares worthless, was humiliated for his scam attempt, and said he would "auction them off."
(https://bitcointalk.org/index.php?topic=85443.msg2064057#msg2064057)

I offered to buy his BMC for 1 BTC.  Burnside offer to buy his BMC for 2 BTC.  Diablo, caught in a lie, refused both offers.

You confirmed his shares could be sold and transferred en mass.

Diablo never followed up, preferring to wait until a convenient confluence of circumstances allowed him to play the victim and declare DMC shares void.

Diablo knows our massive stake in BMC is worth a lot of BTC.

I don't appreciate being insulted (called a troll for raising my demonstrably valid concerns), lied to, and ripped off.

I know this isn't your problem, and that's why I'm offering you BTC out of my own pocket to make the tiny token effort needed to deny Diablo his ill-gotten gains.

Keep them, donate them, send them to a null address.  I don't care what happens as long as Diablo does not profit from his perfidy.


Cheers,

-iB

Reference:

Ukyo is already aware of my wishes to end DMC. Now that yochdog will allow transference of shares, I am going to consider auctioning them off.

I'm glad you are keeping Ukyo in the loop.  It's not fair that the unwise actions of his asset issuers reflect poorly on his exchange, but yours will regardless.

   Is Ukyo "already aware" that you unilaterally decided to steal DMC's 1000 BTCMC shares under the false pretext of them holding no value, despite being worth exactly 10% of Yochdog's large established mining company?

I disagree with any attempt by Diablo to assign "zero value" to DMC's holdings.

   Is Ukyo "already aware" that Yochdog, backed by facts and demonstrative evidence, disagrees with your (former, now abandoned) self-serving subjective appraisal of BTCMC's negligible worth?

   Is Ukyo "already aware" that you have now contradicted yourself (in a most spectacular and embarrassing manner) by entertaining the idea of holding an auction for shares you previously insisted on declaring defunct, upon suddenly realizing (when pointed out to you) DMC owns an enormous 10% of BTCMC and not the 2% you formerly believed?

   Is Ukyo "already aware" that many DMC shareholders have already (eagerly) submitted to your abusive, unethical change in DMC's terms, losing their rightful BTCMC stake in the process

  Is Ukyo "already aware" you may now auction off DMC's BTCMC shares, forcing your shareholders to bid for assets they already rightfully own?

Im pretty sure Ukyo is aware that this forum has trolls. You do realize any funds received for the sale of BTCMC would be paid out as dividends, right?

https://bitcointalk.org/index.php?topic=85443.msg2064866#msg2064866

    
Re: [GLBSE] Bitcorp Mining Company - BTCMC 60+ GH/s, clear ASIC upgrade path.
May 07, 2013, 02:56:24 PM
   
 #204
Quote from: DiabloD3 on May 07, 2013, 02:50:41 PM
Quote from: yochdog on May 07, 2013, 02:41:36 PM
Quote from: DiabloD3 on May 07, 2013, 02:31:38 PM
Quote from: yochdog on May 07, 2013, 02:02:11 PM
Quote from: iCEBREAKER on May 07, 2013, 01:51:52 PM
Quote from: DiabloD3 on May 07, 2013, 01:32:48 PM
Wow, you've dragged your trolling into this thread too?

Why don't you want me to enquire as to Yochdog's opinion of your unflattering characterization of his mining company?

You should welcome his confirmation of the correctness of your negative evaluation of BTCMC.

Yochdog, may I buy DMC's 1000 shares now?  If not, I understand, but will you honor an agreement between Diablo and myself to transfer the shares when possible?

Yes, I will facilitate private transactions of shares between consenting parties. 

Really? So if I go run an auction selling the shares, thats totally fine with you?

You have to sell the entire lot.  I will not break down current holdings into smaller blocks.

If you run an auction, and both parties verify they accept the terms, I will transfer ownership. 

Ahh, that makes it a tad more problematic.

Should be easy!  You have marked the shares to zero on your books, so anything you get out of them is a bonus to your shareholders.  I say full steam ahead. 

[pascal257]

My suggestion is go get a lawyer if

1. You are an American,
2. Contract was broken or any tort there.

This would be a easy case.

Or I don't know what you can do as I have 10 coins stuck in Ukyo's Weexchange.

As BTC goes higher and higher, we will see more and more people lose their dignity.

But I see this as a good thing. BTC worth nothing if it cannot figure out a way to build trust on selfish rather on dignity.

If DiabloD3 does not respond or react I will start a thread in scam accusations.

[Sukrim]

Well...

People here are expected to use the "trust" function, accounts are no longer labelled as scammers. Feel free to do so and link to it in your negative trust feedback, but that's about all you can do.

[DiabloD3]

I was not aware this thread existed.

As I have said in the DMC thread, Yochdog did not pay out any BTC for BTCMC and I do not believe he ever intends to. I sent a request to him to pay out in time for the DMC closure, he did not. No one ever offered to buy the shares for a significant fraction of the debt. You can claim I'm stealing them, but I do not expect to ever see Yochdog pay out on this.

I made an exception for AM redeeming for pascal257 as he missed the announcement and had a small number of DMC shares. He received his shares on Nov 6th, or several days before he started this thread. He talked to me on IRC and didn't realize that he received the shares as friedcat does not verify transfers.

As for the final 2,789 shares, 2,324 of them are owned by two people who have not responded to the final notice.

[Sukrim]

Well, actually I still haven't received any dividends on the AM shares that I got for my trade-in - maybe you could check if you received them instead and send them to me? Also it would be nice to poke friedcat again, maybe he forgot about the transfer?

[DiabloD3]

Well, actually I still haven't received any dividends on the AM shares that I got for my trade-in - maybe you could check if you received them instead and send them to me? Also it would be nice to poke friedcat again, maybe he forgot about the transfer?

I've PM'ed him to request verification of how many shares I have. It should match the number I have.