Micon's list of obvious ponzi schemes you should never send BTC to and get back all you can if you already did:1/14/2013 Update
MICON'S #1 CURRENT BTC SCAM:
Dedicated thread: https://bitcointalk.org/index.php?topic=136392.0
------------------------- First Wave of BTC Ponzi's, All went boom by Q4 2012 -----------------------
Bitcoin Savings and Trust is the largest BTC Ponzi. Likely $1M+ USD scam -- https://btcst.com/login - https://bitcointalk.org/index.php?topic=50822.1480 - (how is this locked!?) BS&T is very soon going to be the largest BTC theft ever (posted 7/27/2012) BS&T is run by pirateat40 --> https://bitcointalk.org/index.php?action=profile;u=35827 and he is openly mocking his "investors" with this username and the name of his scam. At least this will add much lulz to the greatest BTC theft story when it's written.
2) MyBitcoinTrade - Classic Russian Scammer background - https://bitcointalk.org/index.php?topic=81357.0 & their lol-tastic FAQ https://mybitcointrade.com/en/?content=/intern/faqs - this has been elevated to #2 on my list (7/27/2012) as it is independant of Pirateat40's BS&T ponzi
3) vescudero's Ponzi Scam - https://bitcointalk.org/index.php?topic=89122.0 active in this thread, let's see how he claims to pay 2% interest and still wants investors for this great money making thing he does. Has set up many fake accounts, twitter, linkedin, facebook, "personal" website with non-personal content.
4) NCKRAZZE's Ponzi Scam - https://bitcointalk.org/index.php?topic=81927.40 - standard vague business unit plans, just deposits and payouts until he decides to leave (
5) BitcoinMax (simple derivative of BS&T) - operator states in FAQ that if BS&T defaults then his version dies too. Shameful to run, but honest) https://bitcoinmax.com/
6) Leandro César's Ponzi Scam - https://bitcointalk.org/index.php?topic=46750.0 (active in thread)
7) Dank Bank ponzi scam https://bitcointalk.org/index.php?topic=93003
ciuciu's ponzi scam https://bitcointalk.org/index.php?topic=87780.0
9) OgNasty's ponzi scam https://bitcointalk.org/index.php?topic=75843.0 (has claimed he will start giving deposits back and focus on his mining company, let's see)
10) RustyRyan's ponzi scam https://bitcointalk.org/index.php?topic=96163.0
11) imsaguy's ponzi scam https://bitcointalk.org/index.php?topic=60117.0 (guy isn't even trying in his OP - at least tell your marks that you are trading great or something)
12) Joker's scam http://jokerdragonbtcif.blogspot.ca/
GLBSE investment products linked to Ponzi scams you should not invest in:
1) BurtW's BCST ponzi derivative bonds https://bitcointalk.org/index.php?topic=76594.0 https://glbse.com/asset/view/PPT.A https://glbse.com/asset/view/PPT.B https://glbse.com/asset/view/PPT.C https://glbse.com/asset/view/PPT.D https://glbse.com/asset/view/PPT.E
2) Bitdaytrade (3% per week) https://bitcointalk.org/index.php?topic=93445.0 https://glbse.com/asset/view/BDT
3) FOO.PPPPT -- https://bitcointalk.org/index.php?topic=83013 - https://glbse.com/asset/view/FOO.PPPPT - another shameful pirate passthrough, just dumping even more money to the biggest BTC scammer to date.
4) CIUCIU.BOND https://bitcointalk.org/index.php?topic=95826.0 another shameful scam offering from ciuciu
a good list of ponzi's, pass-throughs, and other scams I may have missed: https://bitcointalk.org/index.php?topic=81542.0
Bitcointalk.org is doing the bitcoin community a huge disservice to list these Ponzi's under " Economy > Marketplace > Lending" - this gives them amazing credibility to new, young BTC users. They should be listed under " Economy > Marketplace > Ponzi Schemes" so new users are aware of the scam and can take part if they wish. Yes, it's odd that ppl take part in something they know it's a scam, but the BTC currency doesn't determine right or wrong, scammers are gonna scam, and there are people that want to be scammed, so might as well categorize as such. And please reserve the marketplace > gambling for legitimate gambling products like SealsWithClubs and SatoshiDice - not for outright scams.
I am a 33 year old poker player & entrepreneur. I have been scammed and know how to spot scams. I run a poker forum and podcast called DonkDown and I out scams against the poker world as much as I can. I know most BTC users are still very young. Nothing can pay 6.9% per WEEK (lols at the balls needed to print this). Let alone something that does nothing. It's called a Ponzi Scheme, it's been around for years, only the site owner and a very small % of early "investors" make a profit.
please take the time to read about the scam and realize it's totally the same scam, just using BTC: http://en.wikipedia.org/wiki/Ponzi_scheme
Think about it logically:
-- here are some traditional "high interest" savings account rates. They are around 1% per year. http://www.getrichslowly.org/blog/2007/03/21/which-online-high-yield-savings-account-is-best/
-- these schemes take in "investment"
-- they have no underlying business machine that makes money
-- they pay out an outrageous rate of interest - 7% per week - a full 3000% per year! it's a totally impossible scenario unless they Walter Whiting up some glass quality and selling it
-- some may claim to be "trading" or "investing" in other things, but they are doing nothing other than seeking new investment to keep paying the insane interest
-- They use new investment to keep paying the interest until new investment < interest owed that week, or month, or at a point where they believe it to now be -EV to keep paying the interest.
-- most will lose, except the site operators and a small % of early "investors" - massive pain will be felt through the BTC community
-- this will likely be the largest BTC scam or theft ever, surpassing both Bitcoinica hacks and the Gox craziness of last year and that 1 other I'm forgetting about
This is a huge negative on the community financially and for bitcoin itself. This also makes a mockery of the Marketplace > Lending forum category. Real, actual, BTC lending at traditional time-value of money rates should be legitimate BTC business. Most of what I see here is nothing but disgusting scammery that is all falling apart extremely soon and will become the next "giant BTC theft" story.
*** Note: Considering categorizing lending scams into Ponzi, Ponzi derivative, multi-investment fund with exposure to Ponzi (and occasionally mining, which has a legit business unit that could profit) and we will for sure need an "Other" category in the future.