History - Bitcoin Savings and Trust and Pirateat40 on Bitcointalk (PONZI)

[xtraelv]

Trendon Shavers (known as Pirateat40 or simply Pirate) was the operator of the largest ponzi scam (in bitcoin amount scammed) in bitcoin history:



Pirateat40 operated a ponzi scheme which initially promised a guaranteed a daily profit of 1%, and then disappeared with an unknown amount of bitcoins in August 2012. Thoughts were that the amount was about 500,000 bitcoins (US $5 million at the time).

These amounts were soon quashed once investigators realized a large hoard of coins found in their analysis did not belong to Pirate, but instead to a black market website with which Pirate used to mix his funds to hide the actual amounts he had held/stolen.
Source: https://en.bitcoin.it/wiki/Trendon_Shavers

August 22, 2011, Howdy... pirateat40 here, long time watcher first time poster.  Those that know me, know me from OTC. Arrrrgh
Pirateat40 makes his first post on Bitcointalk
https://bitcointalk.org/index.php?topic=15672.msg472876#msg472876
   
October 17, 2011,(Auction) More Cards Available (5970, 2x6970, 1x6950) CLOSED
Initially pirate was trading GPUs for bitcoin and was a trusted member of the bitcointalk community - even reporting scammers
https://bitcointalk.org/index.php?topic=48692.0
https://bitcointalk.org/index.php?topic=51217.0 (reporting a scammer)


November 03, 2011, Bitcoin Savings and Trust on http://btclending.com/
https://bitcointalk.org/index.php?topic=50822.msg607752#msg607752
(Origional post was edited later by pirate)




July 05, 2012, I believe theses quotes should now kill BS&T.
Vandroiy repeatedly warned user that  Bitcoin Savings and Trust is a Ponzi and writes a detailed post with accusations.
https://bitcointalk.org/index.php?topic=91655.0






July 05, 2012,  organofcorti suggests a method to settle the division of opinions.
Pro Pirate Bond: Coins invested in the Pro Pirate Bond are invested with Pirate, at whatever the current rate is. Any interest obtained will be moved to an escrow service.
Pirate Default Bond: Coins invested in the Pirate Default Bond do not increase in value.
https://bitcointalk.org/index.php?topic=91661.0

July 05, 2012, I know what Pirate's doing
Several members stick up for pirateat40
https://bitcointalk.org/index.php?topic=91670.0

July 06, 2012 Putting your money where Pirate's mouth is.
Vandroiy and pirateat40 have a 5000 btc wager escrowed by nanotube
5000 BTC Wager that pirate will default by October 2013
10100 BTC put into escrow with nano
https://bitcointalk.org/index.php?topic=91661.msg1013589#msg1013589



July 10, 2012, Other People getting PMs from Vandroiy Discouraging Investment in BS&T?
https://bitcointalk.org/index.php?topic=92556.0

July 10, 2012, How much BTC have you lost out on because you listened to Vandroiy?
https://bitcointalk.org/index.php?topic=92581.0

July 24, 2012,Choose: Walk The Plank or Keelhaul
Pirateat40 attempts to get Vandroiy to concede a month prior to closing down the site.
https://bitcointalk.org/index.php?topic=95008.0


July 27, 2012, A risk/reward analysis of insured pirate: YARR, PPT.X, GIPPT, Hashking, Goat
Discusion of various “default bonds” issued.
https://bitcointalk.org/index.php?topic=96092.0

August 17, 2012 (See edit) Pirate closes  Bitcoin Savings and Trust
https://bitcointalk.org/index.php?topic=50822.0
https://bitcointalk.org/index.php?topic=101339.0




August 19, 2012,[TROLL] I'm giving 100% ROI away to anyone who thinks pirate is a fraud
Worlds most expensive troll prank gone wrong by Matthew N. Wright.
It ends up costing him dearly, loses friends over it and then disappears.
https://bitcointalk.org/index.php?topic=101751.0 (The prank)
This was a horrible childish prank that made me look bad and I have no excuse, just that I won't do anything like this again.

I have settled with mostly everyone who bet in this troll thread and it sucks having this be one of the things I'm remembered for, but I won't let it happen again.
https://bitcointalk.org/index.php?topic=140654 (The compensation thread)

August 29, 2012 Figuring out how much was invested with pirateat40
https://bitcointalk.org/index.php?topic=104258.msg%msg_id%

August 30, 2012 Vitalik Buterin wrote an article about it at the time.

https://bitcoinmagazine.com/articles/the-pirate-saga-and-so-it-ends/

September 12, 2012, Trendon Shavers - Family Contact made
https://bitcointalk.org/index.php?topic=109126.0

February 15, 2013 Trendon Shavers - Doxed by debt coillector tldoctor
https://bitcointalk.org/index.php?topic=144321.0

   
July 23, 2013,  pirateat40 alias Bitcoin savings and trusts, trendon shavers BUSTED
The SEC alleges that Trendon T. Shavers, the founder and operator of Bitcoin Savings and Trust (BTCST), offered and sold Bitcoin-denominated investments, raising at least 700,000 Btc, or about $4.5 million at the time of the alleged take. That's about $63 million at today's price
https://bitcointalk.org/index.php?topic=261243.0
https://bitcointalk.org/index.php?topic=261234.0



August 19, 2013 德国将比特币归为“货币单位” 全球首个认可其合法地位
The news of his court case was reported worldwide.
https://bitcointalk.org/index.php?topic=278385.0

March 27, 2016, Inducted into Gleb Gamows Piece of Shit Bitcoiners et al. Hall of Fame
https://bitcointalk.org/index.php?topic=1414944.0;all



July 28, 2016, [2016-07-28] deepdotweb.com Trendon Shavers gets 18 months sentence
https://bitcointalk.org/index.php?topic=1568360.0


Shavers pleaded not guilty to fraud charges in March 2015 but reversed his decision later that year.

The Ponzi scheme had collected money from at least 100 investors. More that 146,000 bitcoins were collected. (worth $807,380 at the time)
Other reports suggest 764,000 bitcoin total.
Shavers admitted that he “royally messed up” and “I don’t think this is something I’m ever going to get over,”

Full plea deal can be seen here:
Plea agreement (External link)


This is a work in progress, corrections and additions are welcome. Will be edited if more information becomes available.

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[xtraelv]

Anyone know what happened to Trendon Shavers ?
 

He got 18 months in 2016 so must be out by now.

[xtraelv]

https://bitcointalk.org/index.php?topic=4432338.0
https://bitcointalk.org/index.php?topic=4425909.0

Quite a lot of VIPs lost substantial funds due to this ponzi - some even became considered scammers because of their defaults on loans:

Matthew N. Wright https://bitcointalk.org/index.php?action=profile;u=24749
PatrickHarnett https://bitcointalk.org/index.php?action=profile;u=26841
Goat - El Cabron  - https://bitcointalk.org/index.php?action=profile;u=44233

[xtraelv]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

[eddie13]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

Why don't you source threads of the time period to tell of OGNasty's part in this, rather than a non-historical witch hunt thread with obvious anti-OG bias based mostly on speculation?

I would like to see all the old threads related to this.. Not this drama..

[xtraelv]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

Why don't you source threads of the time period to tell of OGNasty's part in this, rather than a non-historical witch hunt thread with obvious anti-OG bias based mostly on speculation?

I would like to see all the old threads related to this.. Not this drama..

I thought I had provided a neutral statement on it. That Ognasty / Nastyfans was a victim / investor in the Ponzi and that it led to accusations by some members.

I'm not interested in being involved in this drama -  just documenting what happened. That involves telling multiple sides of the story - sometimes that will contain some bias. Even if I have an opinion on a matter I try to write the historical threads in a neutral manner.

[eddie13]

I try to write the historical threads in a neutral manner.

The thread is neither historical nor neutral IMO.. It would also be lone among no competition..

p.s.
I don't want to muddy your cool thread, gust say'n, so I'll clean it up and delete these posts if you like, just say so

[Recaptcha007]

roflmao.

I know I'm new here but why does this forum support people that run ponzi schemes?

Well, common sense has to play a role as well.  Is there anyone who thought Patrick Harnett & Pirate were doing honest dealings?  I certainly hope not.  Pirate came out and said not to trust him several times as well as hinting that he was engaging in illegal activity.  Even TradeFortress' lending site didn't pass the sniff test.  I also suspected ukyo & graet were trying to get rich playing the spread between their loans and the ones TradeFortress was brokering and thus kept a close eye on them selling off my stake as soon as they became unresponsive.  

Mr. Nasty discusses his in-depth knowledge of pirate's scheme above and mentions pirateat40 coming out several times saying not to trust him and hints to engaging in illegal activity, all of which Mr. Nasty was aware of..

He had this knowledge while he was participating -- operating as a passthrough -- and -- encouraging new users to join?

This is the most trusted user here?      

For a short time I ran an insured deposit program.  Nearly everyone who participated (over 90%) got out with significant gains, but the few who stayed in through the collapse were paid their insured amounts and were quite satisfied, as most of them were already in the green at that point as well.  I would say I ran the only one that didn't burn anyone and I was 100% open about the entire thing.  There was nothing dishonest about what I did and I'm surprised you would insinuate as much.

roflmao

[The Sceptical Chymist]

I'm not interested in being involved in this drama -  just documenting what happened. That involves telling multiple sides of the story - sometimes that will contain some bias. Even if I have an opinion on a matter I try to write the historical threads in a neutral manner.

I, for one, respect that.  I've been aware of the Trendon Shavers debacle for a long time now, and it was one of the first big scams I learned about, and it still blows my mind that he was able to pull off such a large ponzi scheme with so much bitcoin.

What I wasn't aware of was OgNasty's involvement in it.  That fact I just learned when the recent scam accusation against him came out in that other thread.  And as I said there, I'm not passing any judgement because I don't know all of the facts--and I haven't been able to muster up the attention span to read through all of TwitchySeal's posts, nor have I ever understood what exactly OgNasty's business is.  I know there's a Nastyfans thing, and there was that passthrough deal with Shavers, but I can't say I understand all the details.

If someone could write a summary of how OgNasty makes his money in a relevant thread, I'd be more than happy to spread some merit around.  All the details are scattered all over this forum and I'm not the best at searching for and compiling information.  It's not my business, but I'm really curious about it.

Edit:  Oh, and that offer I just made above--if someone actually does write up a summary, please drop me a PM since I might not notice it if it's in a thread where I might not find it.

[OgNasty]

What I wasn't aware of was OgNasty's involvement in it.

I insured user deposits so they didn't lose all their money when BS&T went belly up.  Everyone was happy that was involved.  I had no insider information or special relationship with pirate.  This necro-bump is the result of another wave of trolling me with lies as payback for my outing Vod's recent behavior.  It probably should be deleted by mods, but who am I to try and stop the endless forum drama that has made this place such an entertaining soap opera.

[TECSHARE]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

I thought you were better than this kind of bullshit xtraelv . I guess I was wrong.

[xtraelv]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

I thought you were better than this kind of bullshit xtraelv . I guess I was wrong.

I have neither made a judgement on it nor accused OG of anything. Just reported what was posted on another thread. Likewise I value the comments made by Eddie13 and OgNasty.

[TECSHARE]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

I thought you were better than this kind of bullshit xtraelv . I guess I was wrong.

I have neither made a judgement on it nor accused OG of anything. Just reported what was posted on another thread. Likewise I value the comments made by Eddie13 and OgNasty.

Cool story bro.

[eddie13]

https://bitcointalk.org/index.php?topic=2834153.msg53277993#msg53277993

I think this update is more suited for the History - Bitcoin Savings and Trust and Pirateat40 on Bitcointalk (PONZI) Thread

Maybe one should be suspicious of foul play at any time Vod mentions OG..
Sorry xtraelv, but I think Vod duped you into further extending his drama..

neither historical nor neutral

[marlboroza]

Sorry xtraelv, but I think Vod duped you into further extending his drama..

I (and I am pretty damn sure many many other users) think that you are deep in OG's ass, you are so deep in his ass that I am starting to believe that you are his sockpuppet and I KNOW that everyone can click this link and read transcript

The following transcript is from page 35 of this document.  Q = Question = SEC Investigator.  A = Answer = pirateat40/Trendon Shavers.

TL,DR: CTRL+F ognasty. Everything is explained very well.

[eddie13]

I am starting to believe that you are his sockpuppet

Wow, that is quite a compliment..

Sometimes I wonder why I even care because he doesn't give me shit for merits or even give me an inclusion after all the effort I put in trying to see where these stories are straight and where they are not.. As a matter of fact, I consider it very dangerous for me to post a lot of the stuff I post, and quite one sided in this case..
I can see why you would be wondering what I have to gain from it, because I wonder the same thing myself sometimes..

And I did exactly that with that link and commented about it a little ways after Twitchy posted it in that thread..

[TwitchySeal]

What I wasn't aware of was OgNasty's involvement in it.

I insured user deposits so they didn't lose all their money when BS&T went belly up.  Everyone was happy that was involved.  I had no insider information or special relationship with pirate.  This necro-bump is the result of another wave of trolling me with lies as payback for my outing Vod's recent behavior.  It probably should be deleted by mods, but who am I to try and stop the endless forum drama that has made this place such an entertaining soap opera.

The 'insurance' you keep mentioning was somewhere around BTC60-BTC80 you set aside for more than BTC2,600 invested.  It was nothing more than a marketing gimmick for you to milk before, during and for the last 7 years anytime your mentioned being involved with a ponzi.  

It didn't make you a scammer though, imo, and I've always made that clear.  

The court document I stumbled on last week, looking at transactions from your wallet during the time frame, and the fact that you posted detailed logs of prompt payments on the first or second of every month from April - July, but nothing for August, and you attack whoever asks about it, makes me pretty sure you stole between BTC400 and BTC1400 from 2-5 investors in August of 2012, and then payed out the paltry reserve on Sept 1.

(I won't make any more posts about it in this thread, if anyone is interested in helping to dig through some 2012 bitcoin txs come on over to the thread or pm me, start with this post if you're not caught up)

Side Note: Pretty ironic I have to keep telling people to go read the transcript and they keep saying WitchHunt! and calling me names without addressing any of the actual issues  lol

[Vod]

What I wasn't aware of was OgNasty's involvement in it.

I insured user deposits so they didn't lose all their money when BS&T went belly up.  Everyone was happy that was involved.  I had no insider information or special relationship with pirate.  This necro-bump is the result of another wave of trolling me with lies as payback for my outing Vod's recent behavior.  It probably should be deleted by mods, but who am I to try and stop the endless forum drama that has made this place such an entertaining soap opera.

OG knew it was a scam, as he wrote here.

He created a "penny" fund with the intention of offering that up when the ponzi collapsed.  Then he was free to encourage people to deposit as much as possible for as long as possible, maximizing his scam.

LOYALTY REWARDS PROGRAM:

In order to reward larger depositors, I am introducing a Loyalty Rewards Program.  Effective immediately, depositors with at least 250 BTC in deposits will automatically be enrolled into the program.  For each completed interest rate period, depositors with 250+ BTC in deposits will be rewarded with a 1% interest rate increase per month.  Depositors with 500+ BTC in deposits will be rewarded with a 2% interest rate increase per month.  See below example.

Example:
250+ BTC deposited in April would receive a base rate interest payment on May 1st, +1% on June 1st, +2% on August 1st, etc.
500+ BTC deposited in April would receive a base rate interest payment on May 1st, +2% on June 1st, +4% on August 1st, etc.

Depositors who fall below the 250 BTC loyalty requirement will forfeit their previously earned rewards.
Depositors who fall below the 500 BTC loyalty requirement will have their previously earned rewards cut in half.

20% maximum monthly interest rate applies.

UPDATE:
Accounts holding 250+ BTC will now receive a flat 2% interest rate reward.

[The-One-Above-All]

OGNasty / Nastyfans was also affected by this ponzi.

This a led to some members making accusations against Ognasty. OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes

I thought you were better than this kind of bullshit xtraelv . I guess I was wrong.

What would have ever made you think that? The guy is a clear and undeniable asslicking scammer supporter and imbecile.

This thread is the 2nd clear OG witch hunting meta thread in the last couple of days under the guise of some other neutral board related topic. It was soon latched upon by the SAME people that have been trying to pull OG down with EXTRA DESPERATION since he made it back on to default trust.

1. some of the clear accusations here would get red trust as defamation by their clear double standards usually. We were given 8 red trusts for ASKING hhampuz if he was knowingly hiring scammers AND NOBODY even denied or questioned the evidence we presented. That was apparently LIES and defamation. He we see clear claims of lies, and  stealing with NO conclusive proof at all?? where is their defamation and red trust on their accounts?? DOUBLE STANDARDS to protect their monopoly over DT1.

2.The SAME people here seem the only ones that are claiming it is TRUE without conclusive proof.

3. This is the 2nd thread in the last few days started by KNOWN scammer supporters who want OG removed from DT. Xtraelv and Steamtyme both of whom have been busted for CLEAR and UNDENIABLY double standards and scammer supporting. That at first pretended to be neutral before suddenly being jumped upon by those of the same DT gang that clearly want OG removed from DT.

The reader should note that this is not a clear denial of OG being involved in any wrongdoing since there seems no conclusive proof it seems they are breaking their own self imposed rules that you can not make these kinds of statements without conclusive proof or you are defaming and damaging the illustrious member and board escrow that just returned 500btc after many years.

I think the thread should get back onto the "neutral" subject matter that the OP can PROVE happened rather than the specific witch hunt for POSSIBLE wrong doing of OG.

After all of these years??? then suddenly when OG makes it back to default trust and they are getting DESERVED RED TRUST they get all nostalgic about this specific point...well ONLY THE SAME PEOPLE seem to be getting very nostalgic about it. Strange that those that lost 1400 BTC are not here screaming for their coins isn't it?? where are they?

Seems fishy to me they only start all the OG speculation in real earnest now that he got back on DT1.

DO we have a love of OG?? NO we do not really love OG at all.. he is OKAY. He is far to weak and servile to theymos. He will stand there and not even complain if these systems of control entrench proven scammers with the power to cast honest whistle blowers as scammers. Just says oh it will eventually sort itself out.  He will remove the red paint from lauda a real scammer just because theymos may have brokered a deal. He needs to man up and and start making some wave here and no making ANY DEALS with people like lauda. Tell theymos this system of control is broken ffs. Stand up for those that get abused.

Still there is NO conclusive proof of OG's wrong doing SO FUCKING BRING CONCLUSIVE PROOF before making accusations OR FACE your own self imposed defamation and spread LIES claims. We asked a question and have undeniable evidence of people scamming. You are making clear accusations and have NO conclusive proof at all.

Build your IRON TIGHT case that demonstrates UNDENIABLE WRONG DOING or STFU.

Get back to the NEUTRAL account of proven historical events thanks.


TLDR - there seems NO CONCLUSIVE PROOF of OG's financially motivated wrong doing. There is CLEAR EVIDENCE to suggest these ACCUSATIONS and SPECULATIONS are motivated by a dislike of OG himself and a dislike of of OG getting back on DT recently. These same people are often found attacking OG. These same people are found breaking their own self imposed rules of conclusive proof first or it is defamation and LIES...according to them.  They (rogue dt's) should be flagged red for making such accusations and speculations according to themselves.

[TwitchySeal]

Came across this chart the feds made. 
https://www.courtlistener.com/recap/gov.uscourts.txed.146063.4.6.pdf