DASH (aka DARKCOIN) victim resources

[iCEBREAKER]

"If you see fraud and don't shout fraud, you are a fraud"
  -- Nassim Taleb

What evan did was;

1) Released Darkcoin/Dash
2) Put the block reward at 500 coins per block
3) Make it only available to the extremely small pool of linux users(So his buddies and himself could get the majority of coins)
4) Instamine darkcoin with a few of his buddies
5) Cut Darkcoin's block rewards over 50% from 500 to under 100
6) Cut Darkcoin's max coin supply by 50%
7) End the instamine within 40 hours and go on his merry way

What makes that even worse, was that he made the masternodes as a way to continue enriching himself, so he could gain even more $ from the coins he instamined. Within 40 hours over 2million Darkcoins were mined by Evan and a few others at darkcoins/DASH's release.

If this isnt a scam, then I dont know what is.

This shitcoin is even scammier than i imagined. Someone needs to go jail over this shit

I don't imagine the State of Arizona takes kindly to HYIP schemes, especially when they involve both unregulated financial products and illegal money laundering.

Just at the state level, there are probably a dozen other TLAs who strongly disapprove of crap like this:

In order to run a Masternode, an investor needs to buy 1000 DRK/DASH as collateral.

DASH ROI

You can estimate like this:

- Currently Masternodes get 40% of the block reward.

- The minimum block reward in DASH(DRK) is 4.65 DASH at this moment. I will assume difficulty is high enough so that we are dealing with the minimum reward for a worst case scenario situation, sometimes there are blocks with higher rewards. The minimum DASH block reward decreases by 7% annually to avoid abrupt block halvings, that already happened earlier this year so 4.65 DASH will be valid until next year.

- Average block-time in DASH is 2.5 min, so there are ~576 blocks per day. So 576*4.65DASH*40% = 1071.36 DASH alloted for the whole masternode network currently, we need to divide this by the 2300MN active masternodes. This gives us

 ~Monthly masternode income = 13.97 DASH
 ~Current Minimum DASH Annual ROI = 17%*

*This will change and go up throughout this year as the masternode network reward share will continue to increase each month to incentivize node creation following this schedule:

And the Feds will not be amused either.

UPDATE (thanks cryptohunter!)

Let's take a look at the first 5 h of Darkcoin (XCoin at that time)...

https://bitcointalk.org/index.php?topic=421615.msg4589219#msg4589219
Edufield said (after failed launch) that he will wait the next day to launch DRK (XCoin at that time) it is 11 pm.

https://bitcointalk.org/index.php?topic=421615.msg4591407#msg4591407
Edufield disregard windows wallet and daemon and hurry up his launch, presumably to not have windows miners on board.

https://bitcointalk.org/index.php?topic=421615.msg4592827#msg4592827
Edufield say he added four nodes for the launch at 4 am (5 hours later, despite his promise to wait). The 4 nodes from Edufield are 3 amazons AWS + another unknown (whois IP). Launch started at 3h54 am.

https://bitcointalk.org/index.php?topic=421615.msg4593601#msg4593601
Edufield said the github version was not updated, nobody could compile and only Edufield was able to mine until that time. It is 5.09 am and Edufield instamined alone 1153 block at 500 DRK + 60 block at reward 277 = 593120 DRK for him alone in about 1 hour.

https://bitcointalk.org/index.php?topic=421615.msg4593987#msg4593987
No windows wallet confirmed at 5h47 am, despite a user attempt to make one avaiable, that Edufield dismissed quickly.

https://bitcointalk.org/index.php?topic=421615.msg4594096#msg4594096
Illodin, understand dev has instamined alot of coin.

https://bitcointalk.org/index.php?topic=421615.msg4595573#msg4595573
From this list of nodes, at 8h34 am (4h40 after launch) there were 50 Amazon AWS node and 50 microsoft cloud computing instamining DRK (checked using IP whois service). This is 100/124 nodes using cloud computing to instamine DRK. We are at block 2870 and block reward is 500. From block 1153-1729 block reward is 277. After that it is 500 again hence 2294 block at 500 + 576 at 277 = 1306552 DRK (worth about 13M$ now) were instamined in less than 5 hour by Edufield and coworkers using about 100 cloud mining instances. Edufield himself instamined in not even 5 h from 600K to 1169K DRK ((1306K-600K)*100/124 + 600K) depending how many of the 100 cloud mining instance were its own. All this while having purposefully set the difficult ridiculously low and block reward 100 times what it is now.

From 6M$ - 13M$ in 5 h, Edufield did some lucrative work here!

Edufield is nominee for the Master Scammer 2014 award!

UPDATE: thanks smooth!

As I understand it. what was proposed and voted on was not a relaunch but an airdrop. i.e. creating more coins out of thin air to give away.

But the vote was in fact rigged, by closing it early.

It looks like that happened because a few whales didn't like the idea, and, according to Evan (his words), "You can't change the rules in the middle of the game".

And, yet, the rules were changed in the middle of the game to cut supply, instead of increase it, boosting the share held by instaminers, instead of reducing it.

So it seems you can change the rules in the middle of the game, as long as you favor the right people.

Something stinks here. Big time.

DarkSend Beta v6.1 is out:

https://www.darkcointalk.org/threads/darksend-beta-v6.226/

ps, we offered the community an airdrop to even things out, they voted no.

What airdrop?

https://bitcointalk.org/index.php?topic=421615.msg6105088#msg6105088

Whoa! only 110 votes with 5% difference between yes and no and you decide to abort the vote and lock the thread before 24 hours and conclude that everyone decided not to airdrop?

 

After I asked many investors that purchased $10-100k USD worth of Darkcoin came out of the woodwork and said that would rob them. You can't change the rules in the middle of the game. It's in the past and we're moving on.

Can you imagine buying $30000 worth of something and then the developers making it worth $15000 overnight to appease a small group of users?

So the community didn't vote, the big holders did (the ones that instamined with you)

Gotcha.  

Nope, it was the community that voted.

You just said that you asked the investors, it's even quoted here.

Ah wait, you call "big investores" = community. Gotcha

I asked the community to vote and many of the investors came out of the woodwork (and replied saying what's above). Sorry, my original sentence was confusing.

Community vote for less than 24hrs with 45% for and 55% against, then you canceled the poll and got the thread locked, that's far from a community vote. And you keep admiting that the people that posted had the final word because they had alot invested in DRK.

LOL you just admitted that the "community" = big holders.

[1714936751]

1714936751

[iCEBREAKER]

"If you see fraud and don't shout fraud, you are a fraud"
  -- Nassim Taleb

http://www.fbi.gov/phoenix

FBI Phoenix
21711 N. 7th Street
Phoenix, AZ 85024
Phone: (623) 466-1999
Fax: (623) 466-1108
E-mail: phoenix@ic.fbi.gov

White Collar Crime Supervisor
201 E. Indianola Avenue, Suite 400
Phoenix, AZ 85012-2080
Phone: (602) 279-5511

http://www.azcc.gov/divisions/securities/complaint.asp

Complaints
 
The Securities Division of the Arizona Corporation Commission is responsible for regulating the securities industry in the state of Arizona.  One of our main functions is to oversee the firms and individuals that engage in the offer and sale of securities to the public. If  you are a victim of financial fraud, please send us your complaint information.

https://www.azag.gov/complaints/consumer

The Arizona Attorney General’s Office has jurisdiction over Arizona's Consumer Fraud Act

Consumer Complaint Form

If you believe you have been the victim of consumer fraud, complete the online form below.

For more information you can contact us by phone at (602) 542-5763 (Phoenix), (520) 628-6504 (Tucson), or toll free outside metro Phoenix, (800) 352-8431, or by email at consumerinfo@azag.gov. Please provide your supporting documents by fax at (602) 542-4579 or by mail at 1275 West Washington Attn: Consumer Information and Complaints, Phoenix, AZ 85007 and include your name and complaint number if available.

http://www.ic3.gov/complaint/default.aspx

The Internet Crime Complaint Center (IC3) is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C).

File a Complaint

http://www.stopfraud.gov/report.html#computer

To report computer-based fraud:

Internet Crime Complaint Center (IC3): File a Complaint
Online Form: https://complaint.ic3.gov/ctf.aspx

    IC3 accepts online Internet crime complaints from either the person who believes they were defrauded or from a third party to the complainant.

eConsumer.gov: Report Your Complaint
E-mail: econsumerwb@ftc.gov  

    eConsumer.gov is a portal for consumers to report complaints about online and related transactions with foreign companies.

http://www.stopfraud.gov/report.html#investment

To report Commodities, Investment and Securities Fraud:

U.S. Securities and Exchange Commission (SEC): Center for Complaints and Enforcement Tips
Online Form: www.sec.gov/complaint.shtml  
Phone: (800) 732-0330

    You can file a complaint or provide the SEC with tips on potential securities law violations though the links on this page.

The Federal Trade Commission also works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit the website at www.ftc.gov (link is external) or write or call:
 
Federal Trade Commission
 Consumer Response Center
 600 Pennsylvania Ave. NW
 Washington, D.C. 20580
 1-877-FTC-HELP (1-877-382-4357)
 TTY: 1-866-653-4261

[iCEBREAKER]

Ill start contacting some authorities in the coming days

Jail for Evan

Thanks for your support.

Evan is only the fall guy.

There are shadowy powers behind the DARSH throne which also require investigating:

https://docs.google.com/document/d/143Uwls4ZZrN7pS7bWfjk03i90TWskjy8scNB2U0HOoo/edit?pli=1
backup: https://i.imgur.com/7Ceys35.jpg

THE DARKCOIN FOUNDATION, INC.
1850 E INNOVATION PARK DR #100
ORO VALLEY, AZ  85755

BOARD OF DIRECTORS:

EVAN DUFFIELD
1850 E INNOVATION PARK DR #100
ORO VALLEY, AZ  85755

EDWARD MONCADA
11668 IDAHO AVE #9
LOS ANGELES, CA  90025

FERDANDO GUTIERREZ MOSQUERA
1850 E INNOVATION PARK DR #100
ORO VALLEY, AZ  85755

CHRISTOPHER CARLO RIMOLDI
11310 PROSPECT DR STE 10 #115
JACKSON, CA  95642

HAROLD BOO
11668 IDAHO AVE #9
LOS ANGELES, CA  90025

[iCEBREAKER]

Please use this sig if you want to help.

"DARKCOIN": { HYIP - scam - InstaMined: [500k/1st hr, 2MM/1st day] - Broken Privacy - Broken Security - Broken Masternodes -  Trusted 3rd Parties - Stolen Name - No Fundamentals - BusFactor=1 }

// Duffield, Moncada, & Co should GO TO JAIL for fraud.

Code:

"[url=https://bitcointalk.org/index.php?topic=999886.0][color=brown]DARKCOIN[/color][/url]": { [url=http://darkcoin.guide/wp-content/uploads/2014/12/masternode_payment_plan.png]HYIP[/url] - [url=https://bitcointalk.org/index.php?topic=995710.0]scam[/url] - [url=https://bitcointalk.org/index.php?topic=999886.0]InstaMined[/url]: [url=https://i.imgur.com/dSe9cRz.jpg][500k/1st hr, 2MM/1st day][/url] - [url=https://bitcointalk.org/index.php?topic=978447.0]Broken Privacy[/url] - [url=http://www.reddit.com/r/Bitcoin/comments/2zufu1/a_great_podcast_by_lets_talk_bitcoin_discussing/cpmvogy]Broken Security[/url] - [url=https://botbot.me/freenode/bitcoin-wizards/2014-11-27/?msg=26349785&page=4]Broken Masternodes[/url] -  [url=https://bitcointalk.org/index.php?topic=954451.msg10845049#msg10845049]Trusted 3rd Parties[/url] - [url=https://bitcointalk.org/index.php?topic=678232.msg10758003;topicseen#msg10758003]Stolen Name[/url] - [url=https://bitcointalk.org/index.php?topic=421615.msg10846424#msg10846424]No Fundamentals[/url] - [url=https://bitcointalk.org/index.php?topic=421615.msg10825066#msg10825066]BusFactor=1[/url] }

// [url=https://bitcointalk.org/index.php?topic=421615.msg8585965#msg8585965]Duffield, Moncada, & Co[/url] should [url=https://bitcointalk.org/index.php?topic=999084.msg10858478#msg10858478]GO TO JAIL[/url] for [url=https://bitcointalk.org/index.php?topic=999084.0]fraud[/url].

"You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out."  -Andrew Jackson, 1832

[iCEBREAKER]

More info.  Please PM me with anything else that should be posted here.

http://statelaws.findlaw.com/arizona-law/arizona-pyramid-and-ponzi-scheme-laws.html

In Arizona, investment fraud can happen in a number of ways. A Pyramid or Ponzi scheme is an illegal way of making money using an endless stream of recruits or investors. Some Pyramid schemes involve a product while others do not.

In Arizona, a business is considered a Pyramid Scheme when participants earn more money from bringing others into the program than from the sale of goods, services or intangible property. Pyramid Schemes are successful because potential recruits are told they can make quick, easy money. In reality, it is almost mathematically impossible to make any money at all.

Code Section    

ARS 44-1731, et seq.
Nicknames    multi-level marketing ventures
What is Prohibited    

Pyramid Scheme: A pyramid sales plan is any scheme, whereby a person pays money or some other financial benefit for the chance or opportunity to receive compensation, regardless of whether he also receives other rights or property.

Ponzi Scheme: A swindle in which a quick return, made up of money from new investors, on an initial investment lures the victim into much bigger risks. Generally prosecuted as a federal crime, but can be prosecuted as state-crime under fraud and other state statutes.
Type of Crime    Felony or Misdemeanor-varies on nature of the crime
Who Enforces/Prosecutes the Law?    Arizona Attorney General, Consumer Protection Division, (800) 352-843
Punishment    Violators are subject to prison or county jail, probation, fines, restitution to victim, community service, injunction/restraining order, revocation of business license, freezing business assets.

[iCEBREAKER]

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/44/01731.htm&Title=44&DocType=ARS

44-1731. Definitions

In this article, unless the context otherwise requires:

1. "Compensation" includes a payment based on a sale or distribution made to a person who either is a participant in a pyramid promotional scheme or has the right to become a participant upon payment.

2. "Consideration" means the payment of cash or the purchase of goods, services or intangible property but does not include:

(a) The purchase of goods or services furnished at cost to be used in making sales and not for resale.

(b) Time and effort spent in pursuit of sales or recruiting activities.

3. "Pyramid promotional scheme" means any plan or operation by which a participant gives consideration for the opportunity to receive compensation which is derived primarily from any person's introduction of other persons into participation in the plan or operation rather than from the sale of goods, services or intangible property by the participant or other persons introduced into the plan or operation.

[iCEBREAKER]

Wow, talk about not knowing when to stop digging yourself in deeper:

I was aiming for ~3000 masternodes by mid 2016 based on an return-on-investment bond model. The masternode networks fundamentals are pretty similar to that of the bond market, ROI being comparable to expected interest rates. Currently the expected interest rate of the network appears to be about 16%, as our fundamentals strengthen I would expect that expected rate to actually fall allowing more masternodes onto the network (if people feel less risk in having a masternode, they'll accept less return).

[iCEBREAKER]

Good news everyone!

A whistleblower has emerged from within the Dark-Coin scam.

This insider, vertoe, was a core dev and thus in a position to speak with authority on specifics of the scam:

So yes there is ideology behind this coin : privacy, liberty, freedom, try to make the world less directed by "power" and more with the heart...

I hope that changing the name will not make the ideology behind it change too, otherwhise it will failed.

There's no ideology in something that nobody uses. The ideology's in the design, not the name. Vertoe is justified in leaving over not being consulted but less so over 'ideology'.

It's not a rock song that's being built here it's electronic money.

The name can easily be compromised without any loss of principle but the functionality can't. So Evan has got his priorities right in that regard.

no.

i left because i disagree darkcoin or however it will be called next year is not a decentralized entity. it never was but i ignored it as long as darkcoin was following the same path i was following. the path to total financial privacy. and thats why i am so upset about how this currency is lead by a single person. darkcoin is like an old conservative company with strong hierarchical comamnd structures and a single person on the top of the pyramid. evan duffield. the rebranding using a detergent name was just a step forward in creating something like apple or paypal. fuck this i tell you. what we need is a trustless, decentralized and anonymous currency. darkcoin is not decentralized as it still relies on a single person. and this reaches deep into the code base.

the core devs were just a bunch of volunteers exploited for the big thing. the extended darkcoin team was the same with even a lower place to sit on that pyramid. and what was the darkcoin foundation again? right, something to reserve some rights on some names and collect money. who nominated and voted for the foundation board? who does even know who are these guys? how did we learn about the foundation? from local news papers! the team listings kept counting names of people nobody ever noticed before. and they never committed anything visible to the community or the repository. and i was spending 25 hours a day monitory everything that happened in the darkcoin community for more than a year. the things going on here are fishy, intransparent and rely on a single entity.

i will get out and and will contribute to something decentralized and anonymous. i always hoped darkcoin could fill that void. i cant blame anyone to stay with this project. you are probably investors trying to win a gold donkey. or you are simply trying to exploit every possible vector of profit in the coins space. whatever. you are not here because darkcoin is something it claims to be.

if you disagree with my statement above, i dont care, but answer that simple question: what if evan duffield suddenly announces he quits the project tomorrow morning?

good luck

[BitcoiNaked]

Looks like a monero bag holder trying hard, both are shit and won't ever catch on. It's just the same crypto nerds buying and selling it.

[iCEBREAKER]

More good investigative work on the instamine:

Let's take a look at the first 5 h of Darkcoin (XCoin at that time)...

https://bitcointalk.org/index.php?topic=421615.msg4589219#msg4589219
Edufield said (after failed launch) that he will wait the next day to launch DRK (XCoin at that time) it is 11 pm.

https://bitcointalk.org/index.php?topic=421615.msg4591407#msg4591407
Edufield disregard windows wallet and daemon and hurry up his launch, presumably to not have windows miners on board.

https://bitcointalk.org/index.php?topic=421615.msg4592827#msg4592827
Edufield say he added four nodes for the launch at 4 am (5 hours later, despite his promise to wait). The 4 nodes from Edufield are 3 amazons AWS + another unknown (whois IP). Launch started at 3h54 am.

https://bitcointalk.org/index.php?topic=421615.msg4593601#msg4593601
Edufield said the github version was not updated, nobody could compile and only Edufield was able to mine until that time. It is 5.09 am and Edufield instamined alone 1153 block at 500 DRK + 60 block at reward 277 = 593120 DRK for him alone in about 1 hour.

https://bitcointalk.org/index.php?topic=421615.msg4593987#msg4593987
No windows wallet confirmed at 5h47 am, despite a user attempt to make one avaiable, that Edufield dismissed quickly.

https://bitcointalk.org/index.php?topic=421615.msg4594096#msg4594096
Illodin, understand dev has instamined alot of coin.

https://bitcointalk.org/index.php?topic=421615.msg4595573#msg4595573
From this list of nodes, at 8h34 am (4h40 after launch) there were 50 Amazon AWS node and 50 microsoft cloud computing instamining DRK (checked using IP whois service). This is 100/124 nodes using cloud computing to instamine DRK. We are at block 2870 and block reward is 500. From block 1153-1729 block reward is 277. After that it is 500 again hence 2294 block at 500 + 576 at 277 = 1306552 DRK (worth about 13M$ now) were instamined in less than 5 hour by Edufield and coworkers using about 100 cloud mining instances. Edufield himself instamined in not even 5 h from 600K to 1169K DRK ((1306K-600K)*100/124 + 600K) depending how many of the 100 cloud mining instance were its own. All this while having purposefully set the difficult ridiculously low and block reward 100 times what it is now.

From 6M$ - 13M$ in 5 h, Edufield did some lucrative work here!

Edufield is nominee for the Master Scammer 2014 award!

[iCEBREAKER]

Uh oh, looks like THE DARKCOIN FOUNDATION, INC. is in hot water with FINCEN for running an illegal "Centralized Virtual Currency."

Evan has some kind of kill switch too

It is called spork and it allows the holder of the keys (Evan?) to roll back code under spork without a hard fork. As more code is placed under spork the degree of centralization increases since coin features under spork can be taken out without a hard fork by the holder of the keys. One can see from the code, https://github.com/darkcoin/darkcoin/blob/master/src/spork.h that instant X and the masternode payments are under spork. Now here is an interesting question: What proportion of the code in a Decentralized Virtual Currency has to be under spork in order to turn it into a Centralized Virtual Currency, according to FinCEN http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html?

VERY, interesting question. And one which those of us that are not judges in the U.S. judicial system (or jurors, should it go to that point) will not be making the decision on. We can speculate until we are blue in the face, and prosecutors, attorneys, LEO's, etc will of course be involved in the proceedings when and if they take place, but your pointing out that the U.S. does have codes, laws, and regulations regarding these types of things is very astute.

Considering that the D-Coin Foundation (whatever it is being called these days) is incorporated in Arizona, USA and E.D. is apparently a U.S, citizen, I would imagine that there is already a monitoring program in place. None of it has to be publicly announced. How many MN's are actually gov't-controlled?

[coinmaster222]

So was just going to buy dash but now I see problems ahead not sure I should

[iCEBREAKER]

So was just going to buy dash but now I see problems ahead not sure I should

Put in a low bid to catch the dump next time the instamine holders need more cash.

[Jeff8247]

LMAO iceshitter

[iCEBREAKER]

[jealousy]

Jeff8247    
Date Registered:    January 08, 2014

LOL silly noob.  Stick around, you might learn something!

Lesson One: DASH is a scam, for an ever-growing number of reasons beginning with the insta-mine on day one.

[astrobitcoin]

hey iCEBREAKER, what about the victims of your mining scams?

have been refunded? have you ever been in jail for that? maybe we should also have a closer look to your case..

"If you see fraud and don't shout fraud, you are a fraud"
  -- Nassim Taleb


and please STOP quoting such a quote because doesn't really make sense out of context. 

[illodin]

DASH is a scam

It is? Who was scammed and for how much?

[Snail2]

Are there any victims really? As I see the price have been rising in the last moths and they have a pretty good volume as well, so I guess those "victims" are doing well .

[TheMystic]

Are there any victims really? As I see the price have been rising in the last moths and they have a pretty good volume as well, so I guess those "victims" are doing well .

None that I'm aware of. I've never heard one person claim to be a victim of DASH.

[BlockaFett]

Ice there is a conspiracy theory going round that you are trying to hurt Monero.....because stuff you say is so ridiculous and over the top and you advertise Monero at the same time so it looks bad. And I don't see how you can genuinely be so angry with a coin you don't own. Stranger things have happened.  What do you say to that?