Gigamining / Teramining

[jamesg]

Tomorrow, gave it a week for his lawyer to respond that is up then.

I too am waiting on Quentin to get back to me on a couple items. Hopefully there will be more progress this week.

[1713507039]

1713507039

[1713507039]

1713507039

[1713507039]

1713507039

[SysRun]

Still waiting for step 6. Too much fud on here to get caught up in a reasonable amount of time. Can you post updates on your website as well as here?

[Naelr]

Tomorrow, gave it a week for his lawyer to respond that is up then.

I too am waiting on Quentin to get back to me on a couple items. Hopefully there will be more progress this week.

Does this include the PDF your talking about?

Naelr

[jamesg]

I too am waiting on Quentin to get back to me on a couple items. Hopefully there will be more progress this week.

Does this include the PDF your talking about?

Naelr

Yes.

[Graet]

Still awaiting reply to email sent to James cc to Lawyers email on 23rd November

Other bond issuers have returned my BTC without jumping through these ridiculous hurdles

43 mining bonds doesn't breach any AML/KYC regulations

[jamesg]

Still awaiting reply to email sent to James cc to Lawyers email on 23rd November

Other bond issuers have returned my BTC without jumping through these ridiculous hurdles

43 mining bonds doesn't breach any AML/KYC regulations

Hi Graet,

As I said previously, I too am waiting on Quentin for a few items, one of which should answer most of the questions in this thread.

Also, I do not believe any other GLBSE issuer is hold 3,779 BTC in back payments. I take this responsibility very seriously.

I appreciate your patience while I try and work through this.

Best,
James

[2GOOD]

Still awaiting reply to email sent to James cc to Lawyers email on 23rd November

Other bond issuers have returned my BTC without jumping through these ridiculous hurdles

43 mining bonds doesn't breach any AML/KYC regulations

Hi Graet,

As I said previously, I too am waiting on Quentin for a few items, one of which should answer most of the questions in this thread.

Also, I do not believe any other GLBSE issuer is hold 3,779 BTC in back payments. I take this responsibility very seriously.

I appreciate your patience while I try and work through this.

Best,
James

Hoping for the best

One question - is there more info from Nefario regarding shares of accounts with double payment?

[jamesg]

One question - is there more info from Nefario regarding shares of accounts with double payment?

There has not been any more information sent from GLBSE. If there is, I will update things on the site and post a notice here.

[jamesg]

To all gigaminers:

First, I would like to thank everyone for their patience over the last week. Things are progressing and will continue to move forward. The affidavit should be available on Wednesday of this week. Furthermore, claims will be reviewed once a week moving forward and when verified will be paid all back payments.

As for Teramining, the outline for the Teramining contract is complete and I expect a final version will be ready some time next week.

Below is a response to the concerns some have expressed regarding the request for information.

Best,
James

In response to some of the questions and concerns raised by some members of the bitcoin/gigamining community to the information and documentation requested in the prior posting, Virtual Processing Solutions, LLC (hereinafter VPS), wished to provide the explanation and justification for these requests.

The information requested can be broadly divided into three principal categories:

• Bitcoin payment address.
• Identity information/documentation.
• Affidavit of beneficial assignment.

There does not generally appear to be much concern over the issue of bitcoin payment addresses.  This information has been requested to facilitate ultimate payment of the bitcoins and to allow reconciliation with known outstanding obligations.

Identity information/documentation seems to be among the most controversial of the requested information.  This information is necessary for VPS to obtain and maintain for a variety of reasons, including, but not limited to, compliance with tax regulations of the US and foreign jurisdictions (both for recipients and VPS), compliance with the regulations of the US Treasury Office of Foreign Asset Control, and protection against, and remediation in the event of, fraudulent claims.

When considering these requirements, please keep several points in mind.  The triggering threshold for US IRS 1099 (or IRS 1042 for foreign residents) earnings are extremely modest (ranging from US $10 to $600 depending on the classification ultimately assigned by taxing authorities) and the ultimate value of the bitcoins from now until the close of the filing period is unknown.  It is also worth noting that, due to the nature of the contract, these proceeds could be considered interest income which can have a triggering threshold as low as US $10.

A number of foreign locations are currently under embargo by the United States, ranging from full (in the case of Cuba and Sudan) to partial (including Iran, Burma, Syria, and North Korea).  In many cases the regulations prohibit the transfer of any negotiable or liquid commodities to target countries.  In all such cases, the law establishes the clear responsibility of the transferring party to maintain a compliance program which includes, at a minimum due diligence in establishing the identity of the recipient.  Criminal violations of the statutes carry a penalty of twelve years in prison and fines of US $1,000,000 in additional to independent civil penalties of $1,075,000 per count. 

The affidavit is to provide assurance that all submitted information is true and correct, and to provide protection for VPS against fraudulent claims of assignment. It is worth noting in this matter, that prior to the shut-down of GLBSE, VPS had not maintained independent records of contract assignment, nor do unique tracking numbers for individual contracts exist.  Under such circumstances, the potential for multiple parties to claim beneficial assignment of contracts is manifest, and GLBSE cannot be counted on to provide resolution of conflicting claims or indemnify VPS in the event that the wrong party is paid.  While VPS cannot speak to the cost of the foreign equivalence of notarization (apostille), in the US, such services are available free of charge to account holders at most major US banks, and are otherwise available for minimal (US $20 approx.) fees.

It is absolutely incorrect to assert that these information and documentation requests are to avoid VPS’s obligations under extant contracts, and, in fact, the information requested is no more detailed or onerous than what is generally required to open a brokerage or bank account.

Finally, some concern has been raised that VPS is attempting to change the terms of the original contract.  This is, in fact, precisely the opposite of both the intent and effect of the efforts VPS is undertaking in this matter.  Specifically, the original contract is extremely limited in its text and terms, leaving many issues unresolved, including, most basically, who is a party to the contract (i.e. the identity of the issuer and beneficial assignee).  These omissions alone could possibly cause the contract to be unenforceable, not merely on technical grounds, but because of the practical difficulties in establishing the parties to whom payment is due. 

Further, under US law, contracts are always subordinate to the law of the governing jurisdictions (i.e. where law and contract conflict, the law prevails).  To remedy this known issue, many contracts, include clauses to allow courts to redraw contracts to conform to existing laws to prevent their wholesale invalidation due to conflict with governing law (so called “blue pencil” authorization).  No such clause exists in the written contracts at issue.  Nevertheless, VPS has deliberately chosen to attempt, at its own substantial cost, to remedy both of these limitations in the existing contract, by allowing identification of the parties post de facto, and acting as though blue pencil clauses existed to bring the terms of the contract into compliance with US and State law.  Neither of these actions is explicitly required of VPS by law, nor in VPS’s proximate financial interest, but are nonetheless being undertaken to maintain good faith with the bitcoin/gigamining community.

[Monster Tent]

If you think anyone will send you thousands more bitcoins while glbse mess is still happening youre kidding yourself.

[jamesg]

If you think anyone will send you thousands more bitcoins while glbse mess is still happening youre kidding yourself.

I would not be spending money putting the contract together if multiple parties had not expressed interest.

[Bitcoin Oz]

If you think anyone will send you thousands more bitcoins while glbse mess is still happening youre kidding yourself.

I would not be spending money putting the contract together if multiple suckers had not expressed interest.

ftfy

[jamesg]

If you think anyone will send you thousands more bitcoins while glbse mess is still happening youre kidding yourself.

I would not be spending money putting the contract together if multiple suckers had not expressed interest.

ftfy

Insulting others only cements your reputation as a member of these forums who is incapable of adding value. Please move on.

[BurtW]

If you think anyone will send you thousands more bitcoins while glbse mess is still happening youre kidding yourself.

It is totally reasonable and in fact is has been requested several time that we be able to see the teramining contract before we make a decision as to whether to comply with the gigamining information requests.  Otherwise how will we know whether it is worth doing?

Thank you James for all your hard work.  Looking forward to seeing the teramining contract when it is ready.

[Bitcoin Oz]

I guess we know where all the pirate ponzi profits got funnelled into at least.

[jamesg]

I guess we know where all the pirate ponzi profits got funnelled into at least.

Again, you spout absolutely nothing of value.

[BurtW]

I guess we know where all the pirate ponzi profits got funnelled into at least.

What the hell is a "pirate ponzi profit".  Some new euphemism you made up for being taken in by a con man and then taking a huge loss?

If so then yes well I really made a huge "pirate ponzi profit" on that deal.

Welcome to my ignore list.  Jerk.

[kneim]

Had a lot of shares on GLBSE, will not wait any more. I'm sure now this is a scam. I will send a self-made bot with all its trading information to the share issuers the next days, hope this can be counted as evidence. For GIGAMINIG the last entry (2012-10-04_16:38:54) showed 85 shares. Will send a PM soon.

[vrtrasura]

"When considering these requirements, please keep several points in mind.  The triggering threshold for US IRS 1099 (or IRS 1042 for foreign residents) earnings are extremely modest (ranging from US $10 to $600 depending on the classification ultimately assigned by taxing authorities) and the ultimate value of the bitcoins from now until the close of the filing period is unknown.  It is also worth noting that, due to the nature of the contract, these proceeds could be considered interest income which can have a triggering threshold as low as US $10."

You once refuted my analysis of terramining upgrade costs with a reply along the lines of "I only work in bitcoins, not in us dollars" (can't find the original post).

Is the IRS tracking bitcoins now?  I still don't get it.  How does the IRS know if you are paying us interest or doing any bitcoin transactions.  Please spell out what you are really afraid of, this feels nonsensical.  I only work in bitcoins, not us dollars.  Please send me interest on my shares.

[BurtW]

"When considering these requirements, please keep several points in mind.  The triggering threshold for US IRS 1099 (or IRS 1042 for foreign residents) earnings are extremely modest (ranging from US $10 to $600 depending on the classification ultimately assigned by taxing authorities) and the ultimate value of the bitcoins from now until the close of the filing period is unknown.  It is also worth noting that, due to the nature of the contract, these proceeds could be considered interest income which can have a triggering threshold as low as US $10."

You once refuted my analysis of terramining upgrade costs with a reply along the lines of "I only work in bitcoins, not in us dollars" (can't find the original post).

Is the IRS tracking bitcoins now?  I still don't get it.  How does the IRS know if you are paying us interest or doing any bitcoin transactions.  Please spell out what you are really afraid of, this feels nonsensical.  I only work in bitcoins, not us dollars.  Please send me interest on my shares.

This is actually a very good point.  Even if you wanted to or even if you think you are somehow required to report this to the IRS then how the heck are you going to do it?  There is no place on the 1099 (or 1042) to report "BTC paid".  I am very interested to find out what your attorney expects you to do when filling out the 1099/1042 forms.  Perhaps there is a different form which you would fill out in the case of a barter transaction?  So, for example, if you were giving us all baseball cards as payment how would you report that to the IRS?  Does the IRS have a form that you can fill out when giving someone a box of baseball cards?  Please ask your attorney if he believes you are required to fill out 1099/1042 forms for each of us and if so then exactly how you are going to do it.