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SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

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Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#11

Post by makomk »

dobbsbob wrote: post #10
mtgx wrote: post #8

I'm not arguing over what they're doing, the guy was asking for it, but it seems someone at a high level asked for more regulation and attention on the Bitcoin ecosystem.

what happened was his forum passthru cheerleaders that got scammed when his ponzi popped ran screaming to every authority they could and finally somebody at the SEC noticed. Note these same people all trollish extreme libertarians that denounced all regulation until it affected them and they immediately deferred to authority

Doubt it. Pirateat40 was threatening to move anyone who considered legal action to the back of the queue or even drop them altogether, and his cheerleaders seemed to buy into that for the most part.

Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#13

Post by MichaelGG »

sehrope wrote: post #3

> The SEC alleges that Shavers promised investors up to 7 percent weekly interest based on BTCST’s Bitcoin market arbitrage activity, which supposedly included selling to individuals who wished to buy Bitcoin “off the radar” in quick fashion or large quantities Anybody that is not skeptical about 7% weekly returns on anything is just asking for it. That's 33x your money in 1 year. How can that sound legit to anybody?…

Well what if he was sending them into MtGox and other exchanges? Would that not make it look rather legit? It'd further back up the story that he was working market arbitrage.

Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#15

Post by dobbsbob »

MichaelGG wrote: post #12

Why did he get caught? Looks like plain greed. If had been careful, used Tor, and kept the money in Bitcoin, then carefully withdrew over a long time period he'd have gotten away with it.

He met people in vegas, promised them a bunch of fairy tales to their faces and then scammed them. They knew his name, Tor wont help you there. I have no idea why he didn't flee somewhere though, probably doesn't have any money left most ponzi operators when they go bust have nothing to show for it.

Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#16

Post by dobbsbob »

sehrope wrote: post #3

> The SEC alleges that Shavers promised investors up to 7 percent weekly interest based on BTCST’s Bitcoin market arbitrage activity, which supposedly included selling to individuals who wished to buy Bitcoin “off the radar” in quick fashion or large quantities Anybody that is not skeptical about 7% weekly returns on anything is just asking for it. That's 33x your money in 1 year. How can that sound legit to anybody?…

His "fund" was a mixing service. He was getting mined coins in and paying out probably with SR coins. Originally I'm pretty sure he was laundering for himself or somebody else, or ran his own mixing service like bitcoinfog then it became a ponzi and fell apart. He was also a chronic gambler with delusions of being a good poker player, a lot of coins prob went to gambling

Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#17

Post by sneak »

mtgx wrote: post #8

I'm not arguing over what they're doing, the guy was asking for it, but it seems someone at a high level asked for more regulation and attention on the Bitcoin ecosystem.

As was demonstrated, Ponzi schemes are already illegal, regardless of denomination.

No new laws or regulations required.

99% of the time in the USA, blatant fuckery is already illegal six ways from Sunday. The last thing we need are more laws.

Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#19

Post by foobarbazqux »

sneak wrote: post #17
mtgx wrote: post #8

I'm not arguing over what they're doing, the guy was asking for it, but it seems someone at a high level asked for more regulation and attention on the Bitcoin ecosystem.

As was demonstrated, Ponzi schemes are already illegal, regardless of denomination. No new laws or regulations required. 99% of the time in the USA, blatant fuckery is already illegal six ways from Sunday. The last thing we need are more laws.

Does Bitcoin make it easier to get away with a Ponzi scheme?

Re: SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Scheme

#20

Post by dobbsbob »

makomk wrote: post #11
dobbsbob wrote: post #10

Earlier quoted context omitted.

what happened was his forum passthru cheerleaders that got scammed when his ponzi popped ran screaming to every authority they could and finally somebody at the SEC noticed. Note these same people all trollish extreme libertarians that denounced all regulation until it affected them and they immediately deferred to authority

Doubt it. Pirateat40 was threatening to move anyone who considered legal action to the back of the queue or even drop them altogether, and his cheerleaders seemed to buy into that for the most part.

If memory serves me he tried this stalling tactic for a month or two then just disappeared and even his cheerleaders had to admit it was a scam. Then they found some linkedin info and went after old companies he worked at for info, who were more than happy to tell them what a chronic liar and general weirdo he was to work with. Then the crying to regulators at the SEC began
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