P4man your arguments are like a broken record. If I were not so lazy I would copy paste a rebuttal from one of the previous threads. The facts speak for themselves now. BTCST has been operating for almost 8 months without a hitch.
Still to my knowledge nobody has (publicly) tried to combine pirate's addresses and check out what he might actually do with that money. Does it end up at MtGox after 2-3 hops? At silkroad? Is it transferred in huge batches or only in 0.1 BTC transactions? ALL the information is already out there, in the block chain + in the clients of pirate's customers (who know which addresses are his). We even know quite on time when he pays the interest on Monday, so even without any account holder cooperating we could still get out quite a bit of information there.
Something like http://toolongdidntread.com/category/bitcoin/
developed a bit further could really come in handy...
Operating for 8 months means nothing as long as there are 7% or more per week flowing in (he gives an estimate of ~10% in total per week here in this thread). So far, with all the "pass through" operations, people seem eager so far to throw money at him, so probably he still grows exponentially.