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View Full Version : $386M allegedly missing, as investors fear bitcoin Ponzi



Silver and Gold
02-09-2015, 04:48 PM
Hong Kong-based bitcoin exchange MyCoin has allegedly shut its doors and stolen HKD 3 billion ($386.9 million) in the process.

The South China Morning Post reported Monday that 30 MyCoin clients approached a local lawmaker with complaints that the company had fled with funds from up to 3,000 investors.

The reports coming out of Hong Kong would seem to indicate that there may have been a Ponzi scheme at play.


http://www.cnbc.com/id/102410095

captainsilverton
02-09-2015, 07:27 PM
bitcoin was very profitable for us as an investment.... long gone from our sights now, the gains were exceptional and "cashed out...one of my 1st specs ever...... never again it was a once in a lifetime endeavour... as i had posted during it all..many posts ago..

INCT

insidedealer
02-09-2015, 10:38 PM
Hong Kong-based bitcoin exchange MyCoin has allegedly shut its doors and stolen HKD 3 billion ($386.9 million) in the process.

The South China Morning Post reported Monday that 30 MyCoin clients approached a local lawmaker with complaints that the company had fled with funds from up to 3,000 investors.

The reports coming out of Hong Kong would seem to indicate that there may have been a Ponzi scheme at play.


http://www.cnbc.com/id/102410095

Have you checked how many "ponzi schemes" or whatever have happened in the exchanges or frauds involving US FRN fiat in the last few years? It dwarfs the bitcoin based frauds. As we'd expect since the US FRN fiat fraud is trillions of dollars...bitcoin a bit player at less than 10 billion.
.
But maybe you're right on this one. After 826 previous calls from you and others that THIS is the big one, maybe you'll be right this time with #827.

AnotherDave
02-10-2015, 12:37 AM
It probably wouldn't surprise you to lean that valuable things get stolen every day.

It probably WILL surprise you if you take the effort to read the definition of a "Ponzi". How many have embarrassed themselves so far by using the term in this group?

Chump Change
02-10-2015, 12:53 AM
If the Chinese police catch the perps, they will be charged, found guilty and die

Oh the humanity!

captainsilverton
02-10-2015, 06:06 AM
It probably wouldn't surprise you to lean that valuable things get stolen every day.

It probably WILL surprise you if you take the effort to read the definition of a "Ponzi". How many have embarrassed themselves so far by using the term in this group?

fair enough...ponzi used so so often ..i tend to shy from that word dave...

here it is....

DEFINITION OF 'PONZI SCHEME'
A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop.

Silver and Gold
02-10-2015, 09:03 AM
Bit Con? Veteran fraud expert sets his sights on bit coin

It’s essentially a pump and dump scam. And then I see these snake oil salesmen like the Winklevoss twins get on TV and tell people that bitcoin is going to be worth $40,000 per coin. And nobody is challenging them, asking, “What are you smoking?” Bitcoin isn’t an investment, it’s a slot machine. Or, more accurately, a loaded roulette wheel.



What will be the end game for bitcoin?

Businesses will continue to experiment with the blockchain, proving that that innovation is separable from the bitcoin the currency. At the same time, there’s all these people out there who bought into bitcoin as a tinker toy, thinking they might make some money on it. Maybe they bought $100 when it was worth $10 bucks a coin, and now they’re sitting on $4,000. Many of them will treat themselves to a vacation or a new computer with their bitcoins, and they don’t buy back in. There’s no evidence that people who spend down their wallets buy back in. Little by little it will just atrophy, because nobody is really using it. The big kids will get out, and the little guy sitting on one, two, or, sadly, many more bitcoins will lose it all.


http://fortune.com/2014/10/24/bitcoin-fraud-scam/


He is #828 …...LOL

Silver and Gold
02-10-2015, 09:11 AM
LocalBitcoins User Funds Stolen After Chat Client Hack

Peer-to-peer bitcoin marketplace LocalBitcoins suffered a hack this week that resulted in the distribution of malware and a loss of customer funds.

Affected users will be granted refunds after taking steps to address security vulnerabilities, according to the company.

http://www.coindesk.com/localbitcoins-user-funds-stolen-chat-client-hack/

Silver and Gold
02-10-2015, 09:39 AM
Bitcoin Ponzi Schemer Charged With Criminal Securities Fraud


Shavers' previous SEC case in North Texas created precedent when his attorney claimed bitcoin was not subject to US securities laws that prohibit Ponzi schemes. The judge in that case, however, ruled that the scam had indeed violated those laws, which are designed to protect investors from fraud.

Earlier this year, officials in Texas issued a warning in regards to virtual currencies. Joseph Rotunda, director of enforcement at the Texas State Securities Board, indicated that bitcoin has huge trust issues because of little regulatory clarity.

http://www.coindesk.com/bitcoin-ponzi-schemer-charged-criminal-securities-fraud/

SnakeEater
02-22-2015, 09:59 AM
Bitcoin Ponzi Schemer Charged With Criminal Securities Fraud


Shavers' previous SEC case in North Texas created precedent when his attorney claimed bitcoin was not subject to US securities laws that prohibit Ponzi schemes. The judge in that case, however, ruled that the scam had indeed violated those laws, which are designed to protect investors from fraud.

Earlier this year, officials in Texas issued a warning in regards to virtual currencies. Joseph Rotunda, director of enforcement at the Texas State Securities Board, indicated that bitcoin has huge trust issues because of little regulatory clarity.

http://www.coindesk.com/bitcoin-ponzi-schemer-charged-criminal-securities-fraud/

BTC is an honest socially connected digital Gold. If it is stolen it is self evident and does not require expensive securities we have spent on FIAT. FIAT is worse as it does not require stealing, government has power to create any amount by instructions. Who need stealing which needs effort when you can create infinite amount in secrecy? The debate on budget is just tip of iceberg how FIAT operate to achieve wealth, power and price fixing benefit only the manipulator in secrecy.

FIAT and BTC both are psychology money which can be infinte technically. Both have inherent zero intrinsic values. Both have same adoption difficulties. FIAT acceptance is by expensive wars and laws of legal tender. BTC is a growing money which evolve with intelligent. The transition takes time.

Chump Change
02-22-2015, 01:27 PM
The transition takes time.

The "transition" is going to take a bit longer with stories like this coming out every so often

yellowsnow
03-30-2015, 07:02 PM
gov't stealing too?
http://www.cnn.com/2015/03/30/politics/federal-agents-charged-with-stealing-bitcoin/index.html

equity_value
04-02-2015, 09:22 AM
gov't stealing too?
http://www.cnn.com/2015/03/30/politics/federal-agents-charged-with-stealing-bitcoin/index.html

Nothing new here.

SSDD

thebigtalk
05-11-2015, 02:45 AM
Well ofcourse. If you hold that kind of money and you're one psychopath who wants to run away with all the money. That's just sad. Come to think of it, better be careful on the next investment.