[2014-10-19] CD: Bitcoin Trader Customers Face Losses After Management Disappear

[botany]

Bitcoin Trader Customers Face Losses After Management Disappears

http://www.coindesk.com/bitcoin-trader-customer-losses-management-disappearance/

A popular bitcoin arbitrage service has collapsed, resulting in the loss of customer funds and the dissolution of a company that had a notable presence in the industry.

The news marks the second time in recent weeks that the future of a well-known company in the bitcoin ecosystem has fallen into jeopardy, following the revelation that digital currency exchange Moolah would file for bankruptcy amid financial troubles.

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[Rannasha]

It is relevant to note that BT was a Ponzi scheme from the start, offering unreasonably high returns. They masked it pretty well, among other things by hiring people to make represent the organization at conferences and such. But that doesn't change the nature of the beast. As such, the collapse of this scheme is not at all unexpected.

[Lethn]

Yeah but as we've seen people won't be able to tell the difference between a company and a currency sadly.

[seriouscoin]

I'm glad all the idiots losing money to ponzi schemes. Next we will hear about "cloud mining" closing shops. The stupidity of general ppl never cease to amaze me.

[Wonka]

I'm glad all the idiots losing money to ponzi schemes. Next we will hear about "cloud mining" closing shops. The stupidity of general ppl never cease to amaze me.

If people are aware that it's a ponzi then it's their own fault, but some of these companies are set up to appear legit, though obviously they're still usually too good to be true and people should be very wary of where they invest their money and of get rich quick schemes.

[Raeg]

I'm afraid we're going to have to get used to these sorts of stories popping up every now and again. There's always a never-ending stream of people willing to throw their money into schemes and scams so they're always going to keep popping up and subsequently disappearing with your money.