Bitcoin Ponzi operator pleads guilty over $150M fraud


#1

[Read the post]


#2

That’s all kinds of greedy on both sides…


#3

As a rule of thumb, if somebody offers you an investment that promises returns that would not look out of place if you were talking about smuggling drugs, and you are not smuggling drugs, then is a fraud.


#4

Also a good rule of thumb, investing with someone who uses a handle that calls them a “pirate” (pirateat40) may not be the best bet.


#5

hey, privateer is a respectable profession! the king told me so when handing me the letter of marque!


#6

Early Libertarians!


#7
Paul says his plan [to kill Osama bin Laden] would have accomplished the same goal for only $500 million.

Way too expensive - 500 million are enough to train 4 to 5 rebels, so killing one man shouldn’t be more than 100 million or so.


#8

1 percent every three days is only 121% without compounding.


#9

The “1% every three days” seem to have been made up by The Verge. The original Reuters article says “He promised interest rates of 7 percent per week or 3,641 percent a year.”


#10

7 percent per week is still only 364% per year without compounding. Methinks the writers are the target market of not-so-good-at-math folks.


#11

3641% vs 364% - only one order of magnitude. maybe astrophysicists?


#12

But it was bitcoins! Bitcoins!!!
I thought that normal rules don’t apply to bitcoins.


#13

They’re disruptive, you know.


#14

The scam was for at least 7% weekly compounded interest.

Sometimes he would pretend the ponzi investment scheme was doing really well and post a 7.2% return for that week.


#15

But it was $NEW_INVESTMENT_VEHICLE! $NEW_INVESTMENT_VEHICLE!!!
I thought that normal rules don’t apply to $NEW_INVESTMENT_VEHICLE.

How often we did hear this…


#16

And Bitcoin is the new fad.


#17

With some undeniable merits, though.
Merits that survive even your personal dislike of the crypto-currencies.


#18

I didn’t suggest it was meritless, just not deserving of the (albeit small), VC novelty for centralized services that purport to be decentralized.


#19

It’s part of the hype cycle. It will all settle down.


#20

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