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Bitconnect founder indicted in global $2.4B cryptocurrency scheme

justice.gov

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Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#61

Post by cinntaile »

DonHopkins wrote: post #43
cinntaile wrote: post #2

Nice job. Now if only some people would see the difference between an actual ponzi scheme like this one and bitcoin and other cryptocurrencies. That would be nice.

The fact that cryptocurrencies are even Ponzier than any Ponzi scheme, more pyramidal than any pyramid scheme, much getter, richer, and quicker than any get-rich-quick scheme, and more shaggily carpeted and vigorously jerked than any rug-pull scheme, doesn't mean they're not scams. Edit: when shills gets called on purposefully missing the point by arguing over semantics, they switch to outright denial and making stuf…

There are definitely cryptocurrencies out there that are scams, but big ones like ethereum and bitcoin for example are not. This is besides the point though.

Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#62

Post by mynegation »

senthil_rajasek wrote: post #56
jmyeet wrote: post #26

Crypto may well be the biggest solution looking for a problem I've ever seen. Apart from the obvious issues (eg energy expenditure) the one myth that needs to die about crypto is that it is extragovernmental and indictments such as this and the Bitfinex laundering case recently should underline that. The simple fact is that the developed world could shut down what little utility cryptocurrencies (and NFTs) have tomor…

>China banned mining and mining was gone immediately (largely moving to Kyrgystan it seems). Kearney, NE seems like a popular destination too, for crypto mining. https://www.npr.org/2022/02/24/1081252187/bitcoin-cryptocurr...

You surely meant Kearney, NE. NB in the North-American context stands for New Brunswick, Canada.

Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#63

Post by kosasbest »

Why do people trust middlemen to handle their crypto in a safe manner? The whole idea behind crypto is that it's decentralized. Interacting with exchanges, investment platforms, etc is asking for trouble. Assume any exchange is another MtGox waiting to happen. Assume you no longer own your funds once you interact with any crypto platform. Fraud is rampant in the crypto scene and has been since the beginning. And for those crying 'But Coinbase!'. I don't trust them either. Coinbase must have a really hard time sleeping knowing they're the custodians / middlemen of so much wealth.

Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#64

Post by DonHopkins »

jtbayly wrote: post #57
chiefalchemist wrote: post #20

Earlier quoted context omitted.

Ponzi scheme? Perhaps not. So maybe we need a new word? It's a new invention, and thus might require a new lexicon to capture its essence.

Sounds like a fiat currency in many respects. Which is funny since that’s what it was supposed to not be.

Pinto Currency?

http://content.time.com/time/specials/2007/article/0,28804,1...

Scripps-Booth Bi-Autogo Currency?

http://content.time.com/time/specials/2007/article/0,28804,1...

Bagger Currency?

https://en.wikipedia.org/wiki/Bagger_288

Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#65

Post by bogwog »

ganzuul wrote: post #55

So now their stuff is actually valued $2.4B and it's no longer monopoly money?

> BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors. In total, Kumbhani and his co-conspirators obtained approximately $2.4 billion from investors

That $2.4B is real money they stole from people. The monopoly money would start at the first penny after that number.

Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#68

Post by Tenoke »

kosasbest wrote: post #63

Why do people trust middlemen to handle their crypto in a safe manner? The whole idea behind crypto is that it's decentralized. Interacting with exchanges, investment platforms, etc is asking for trouble. Assume any exchange is another MtGox waiting to happen. Assume you no longer own your funds once you interact with any crypto platform. Fraud is rampant in the crypto scene and has been since the beginning. And for…

The biggest part is for onboarding. The second biggest is for lower fees. The third biggest is because it's easier.

Re: Bitconnect founder indicted in global $2.4B cryptocurrency scheme

#69

Post by DonHopkins »

bondarchuk wrote: post #33

Quoted post unavailable.

Funny how both "Cryptocurrency Derangement Syndrome" and "Trump Derangement Syndrome" are both un-ironically used to describe critical people who are strongly against both of those scams, when they much more accurately describe gullible people who are deeply fooled by both of those scams.
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