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Bitconnect founder indicted in global $2.4B cryptocurrency scheme

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

#241

Earlier quoted context omitted.

It is very much not just semantics. Ponzi schemes are illegal so the difference matters.

I double checked and no one in our comment chain has said anything about legality at all, or even implied same, so you pointing that out as the defining distinction is not really relevant, don't you think? Besides, pump and dump schemes of securities are illegal, though notably most crypto is in the grey area because the SEC doesn’t classify it as a security.

It's a bit of a shortcut. It implies that cryptocurrencies like bitcoin and ethereum don't fulfill the necessary criteria to be deemed a ponzi scheme. If we look at all the red flags mentioned in the wikipedia article.... I shortened some criteria, for a more detailed explanation of each criterium I suggest you check the Wikipedia article.

High investment returns with little or no risk. --- Not true.

Overly consistent returns --- Not true.

Unregistered investments --- True in some cases, not true in others.

Unlicensed sellers --- same as above.

Secretive or complex strategies --- Not true.

Issues with paperwork --- Not true

Difficulty receiving payments --- Not true. Actually irrelevant.

The sales personnel or adviser are overly pushy or aggressive. --- Not true. Actually irrelevant. Not bitcoin or ethereum sales personnel or advisers exist.

The initial contact took place by a cold call or through a social network, a language-based radio or a religious radio advertisement. --- This one is a tough one since there are definitely devotees that likely were vital in the initial spread. In most cases people probably came into contact with crypto through the mainstream media though.

The client cannot determine the actual trades or investments that have been carried out. --- Not true

The clients are asked to write checks with a different name than the name of the corporation (such as an individual) or to send checks to a different address than the corporate address. --- Not true. Actually irrelevant.

Once the maturity date of their investment arrives, clients are pressured to roll over the principal and the profits. --- Not true. Also irrelevant.

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

#243

Earlier quoted context omitted.

> People deserve a way to send money without middlemen Why? Please don't just make unfounded assertions.

What's "deserved" is subjective, but I'll bite. People from countries that are fiscally irresponsible and have tight capital controls "deserve" access to an asset that, while volatile, gives them a better hedge than hyperinflation and can't effectively be blocked by their dysfunctional government. See Zimbabwe, Venezuela, and citizens of any country that has a black market exchange rate for dollars/euros(Argentina, L…

Are you sure crypto will solve the problem of volatile currencies? BTC crashes on around a yearly basis [0], it's to find any currency more volatile than that.

[0] https://www.yahoo.com/video/7-biggest-bitcoin-crashes-histor...

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

#244

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…

For the same reason people use banks and brokerages -- it's easy.

There are also significant risks to managing your own crypto: managing wallet security is not trivial, people have lost money because they lost their passwords etc. There is a staggering amount of scams to avoid.

The level of complexity and risk inherent in self-managing crypto is just too much to expect from the general public.

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

#245
post #103
post #66

Earlier quoted context omitted.

Was Carlos indicted as well?

Carlos was not really a part of Bitconnect. IIRC he just showed up to some event and did such a good job riling up the crowd that they started making him part of the show.

Yep, we was a victim too; lost $25k. His main job is (IIRC) an Integration Aide at a special school, so I can imagine this was pretty significant.

It seems he has been a victim to multiple investment scams (losing $100k+ in total) but genuinely believes that one day he'll strike it rich.

He speaks about it openly in his vlog:

https://www.youtube.com/watch?v=3odIbJl-dGM

(Hilarious channel if you have time to waste.)

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

#246

undying classic from carlos https://www.youtube.com/watch?v=XFwlWLtsw6c

Here is the original “speech”: https://youtu.be/lCcwn6bGUtU Most of the early yelling is done at 1:04. Then you get the guts of his talking points. Make massive financial gains, the gains are due to faith and belief that by purchasing this currency you will be responsible for changing the world. This guy’s intro / enthusiasm is a long running joke between a pal and me. Crypto price is up? Bitconnect…! Price is down?…

Good stage presence, but the backup singers should have been more dynamic.

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

#248

undying classic from carlos https://www.youtube.com/watch?v=XFwlWLtsw6c

Here is the original “speech”: https://youtu.be/lCcwn6bGUtU Most of the early yelling is done at 1:04. Then you get the guts of his talking points. Make massive financial gains, the gains are due to faith and belief that by purchasing this currency you will be responsible for changing the world. This guy’s intro / enthusiasm is a long running joke between a pal and me. Crypto price is up? Bitconnect…! Price is down?…

Better quality: https://youtu.be/watch?v=kNdp0I8AG40

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

#250
post #205
post #188

Earlier quoted context omitted.

Fees are why I haven't moved my ETH after using an exchange to buy some for USD. I don't want to pay the stupidly high costs to move the ETH into a wallet that I fully control. Especially because turning that back to USD so it's actually usable in day-to-day transactions would require paying yet more fees to move the ETH back to an exchange (or to an independent buyer).

Have you had a look at gas prices recently? A transfer costs between 1$ and 2$ depending on the time of the day. It's still much higher than it should be, and let's hope that will change soon with the merge and L2 adoption, but that's not what I would call stupidly high costs to move the ETH .

I hadn't checked recently. If they're that low then I'm going to pull the coins out now.
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