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Bitcoin Ponzi Scheme followed Eve Online path

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BeanBagKing
The Order of Atlas
#1 - 2012-08-29 17:10:42 UTC
http://news.slashdot.org/story/12/08/29/0349226/large-bitcoin-ponzi-scheme-collapses-with-a-loss-of-56-million
"Slashdot" wrote:
"Despite the many people calling it out as a Ponzi scheme from the beginning, Pirateat40 was able to collect millions of dollars worth of Bitcoins from thousands of Bitcoin users. At almost every stage Pirateat40 copied the path of the EVE Online Ponzi scheme except on a much larger scale with a far more liquid take. Now, it has shut down, and investors are wondering where their digital currency went. Quoting: 'He claimed that BS&T was sitting on 500,000 BTC on the day of the shutdown, worth more than $5.6 million USD at today's price of $11.38. "Once my process is released you'll understand more of how coins move around," he told members of the Bitcoin community last week. Pirateat40 initially promised to refund his investors' Bitcoin deposits plus interest within a week, effectively admitting that he did not have the Bitcoins on hand. The fund normally paid out on Mondays, but last Monday and today have passed so far without refunds. BS&T investors are complaining loudly and so-called "pass-through" funds that invested with BS&T are shutting down. As of this writing, BS&T says there is "no ETA on payments."'


I have to admit feeling a bit of pride that the methods of scamming in Eve work in real life.
Jim Era
#2 - 2012-08-29 17:12:07 UTC
so...bitcoins were a scam after all?

I never understood those lol

Wat™
THE L0CK
Denying You Access
#3 - 2012-08-29 17:22:10 UTC
BeanBagKing wrote:

I have to admit feeling a bit of pride that the methods of scamming in Eve work in real life.



I think you mean the scamming of real life worked in eve. It was named after Charles Ponzi back in the '20's or so but the idea had been floating around as early as the mid 1800's. That's about 150 years give or take before Eve was even on the drawing board.

As for bitcoin, yeah I knew was a scam since I first heard about it. And yes, I never understood them either and I still don't even after a local eve user explained it in great detail.

Do you smell what the Lock's cooking?
Palovana
Inner Fire Inc.
#4 - 2012-08-29 17:27:04 UTC
THE L0CK wrote:
BeanBagKing wrote:

I have to admit feeling a bit of pride that the methods of scamming in Eve work in real life.



I think you mean the scamming of real life worked in eve. It was named after Charles Ponzi back in the '20's or so but the idea had been floating around as early as the mid 1800's. That's about 150 years give or take before Eve was even on the drawing board.

As for bitcoin, yeah I knew was a scam since I first heard about it. And yes, I never understood them either and I still don't even after a local eve user explained it in great detail.


Wasn't there some EVE player who kept encouraging people to invest in Bitcoin some time back? Or was that Phaser? I can't keep track of these anymore.

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Arrs Grazznic
Poena Executive Solutions
#5 - 2012-08-29 17:27:15 UTC
Slashdot isn't saying that Bitcoin was a Ponzi scheme, rather someone has run a Ponzi scheme useing Bitcoins as teh investing currency.
Poetic Stanziel
The Scope
Gallente Federation
#6 - 2012-08-29 17:29:13 UTC
THE L0CK wrote:
It was named after Charles Ponzi back in the '20's or so ...
I thought it was named after that guy from Happy Days, the one that jumped the shark.

:)
Dog Biscuit
Doomheim
#7 - 2012-08-29 17:30:47 UTC
i HEARD IT'S SOMETHING TO DO WITH isd
THE L0CK
Denying You Access
#8 - 2012-08-29 17:37:27 UTC
Palovana wrote:
THE L0CK wrote:
BeanBagKing wrote:

I have to admit feeling a bit of pride that the methods of scamming in Eve work in real life.



I think you mean the scamming of real life worked in eve. It was named after Charles Ponzi back in the '20's or so but the idea had been floating around as early as the mid 1800's. That's about 150 years give or take before Eve was even on the drawing board.

As for bitcoin, yeah I knew was a scam since I first heard about it. And yes, I never understood them either and I still don't even after a local eve user explained it in great detail.


Wasn't there some EVE player who kept encouraging people to invest in Bitcoin some time back? Or was that Phaser? I can't keep track of these anymore.



I can't remember what his name was but I think we're talking about the same guy. If any kind of file sharing was involved, this guy was all over it, constantly posting pics showing him bittorrenting like 50 files at any given time with great speeds, worshiped Whats his face who is stuck in a embassy in England right now, and started going crazy with this bitcoin thing.

I know people say this all the time on the forums, but I honestly believed that dude didn't have an actual job and lived at home with his parents.

Do you smell what the Lock's cooking?
BeanBagKing
The Order of Atlas
#9 - 2012-08-29 17:43:45 UTC
THE L0CK wrote:
BeanBagKing wrote:

I have to admit feeling a bit of pride that the methods of scamming in Eve work in real life.



I think you mean the scamming of real life worked in eve. It was named after Charles Ponzi back in the '20's or so but the idea had been floating around as early as the mid 1800's. That's about 150 years give or take before Eve was even on the drawing board.

As for bitcoin, yeah I knew was a scam since I first heard about it. And yes, I never understood them either and I still don't even after a local eve user explained it in great detail.

I was more referring to the particular method that works in Eve working on Bitcoin, I don't know the details, but when they say he copied the path of the Eve scheme I assume there was a particular method used in Eve that he also used.
In general though, yes, I'm also happy that real life scams work in Eve.

Also, someone else already corrected people, but for those that didn't read it. Bitcoin itself is not a scam (that anyone knows of *tinfoil*), this was just a scam that used Bitcoin.
Ensign X
#10 - 2012-08-29 17:51:40 UTC
Bitcoins are an electronic payment method, ala Paypal, Credit Cards and others. However, unlike other payment methods, they can be freely traded and have a fluctuating rate of exchange against various currencies. Bitcoins are not a scam.

The scam is that somebody set-up a shill hedge fund in order to accept Bitcoins from investors in an effort to trade them versus various currencies and increase the value of the investment. However, it appears the creator of the fund has no intention or lacks the capability to pay back his investors who are now faced with the very real possibility that they have been taken for a ride in this latest of Ponzi schemes.

It's also worth noting that, unlike Ponzi scheme's in EVE Online, this Bitcoin scheme has cost it's investors real, actual money and is 100% illegal. It remains to be seen whether the perpetrator of the scheme will be prosecuted, though it's highly unlikely that he'll be allowed to hang on to the ~$5.5 million real dollars he has scammed from his investors.
CCP Phantom
C C P
C C P Alliance
#11 - 2012-08-29 17:55:03 UTC
While this is quite interesting news, it is only vaguely related to EVE General Discussion and therefore this thread got moved.

CCP Phantom - Senior Community Developer
Blane Xero
The Firestorm Cartel
#12 - 2012-08-29 17:55:30 UTC  |  Edited by: Blane Xero
Ceaon was the guy on the forums posting about Bitcoins a lot. I doubt he was involved though.

Resident Haruhiist since December 2008.

Laying claim to Out of Pod Experience since 2007, plain and simple. Keep the trash out of [u]Out Of Pod Experience[/u], If it's EVE Related or deserves a Lock, it does not belong here.
Scatim Helicon
State War Academy
Caldari State
#13 - 2012-08-29 17:57:11 UTC
Both the BitCoin and Eve communities are utterly infested with braindead libertarians, so its only natural that there's a large degree of crossover between the two.

Every time you post a WiS thread, Hilmar strangles a kitten.
FloppieTheBanjoClown
Arcana Imperii Ltd.
#14 - 2012-08-29 18:12:48 UTC
I can't believe people are still so into bitcoins after the crazy ride they've had.

Founding member of the Belligerent Undesirables movement.
Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#15 - 2012-08-29 18:15:43 UTC
Blane Xero wrote:
Ceaon was the guy on the forums posting about Bitcoins a lot. I doubt he was involved though.


So was Xenuria, something about helping him pay for education or something Roll

"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny
THE L0CK
Denying You Access
#16 - 2012-08-29 18:16:16 UTC  |  Edited by: THE L0CK
Blane Xero wrote:
Ceaon was the guy on the forums posting about Bitcoins a lot. I doubt he was involved though.



That's the name!


Surfin's PlunderBunny wrote:


So was Xenuria, something about helping him pay for education or something Roll



Isn't he supposed to be a boy genius or idiot savant or something? I thought I saw a thread where rainman stated he was going to take the asvab or mensa. What does he need funding for education for?

Do you smell what the Lock's cooking?
Blane Xero
The Firestorm Cartel
#17 - 2012-08-29 18:16:47 UTC
Surfin's PlunderBunny wrote:
Blane Xero wrote:
Ceaon was the guy on the forums posting about Bitcoins a lot. I doubt he was involved though.


So was Xenuria, something about helping him pay for education or something Roll

I would think Ceaon more likely to pull a Ponzi than Xenuria any day.

Resident Haruhiist since December 2008.

Laying claim to Out of Pod Experience since 2007, plain and simple. Keep the trash out of [u]Out Of Pod Experience[/u], If it's EVE Related or deserves a Lock, it does not belong here.
Surfin's PlunderBunny
Sebiestor Tribe
Minmatar Republic
#18 - 2012-08-29 18:19:47 UTC
Blane Xero wrote:
Surfin's PlunderBunny wrote:
Blane Xero wrote:
Ceaon was the guy on the forums posting about Bitcoins a lot. I doubt he was involved though.


So was Xenuria, something about helping him pay for education or something Roll

I would think Ceaon more likely to pull a Ponzi than Xenuria any day.


He'll try though, he's always playing on his self-proclaimed genius

"Little ginger moron" ~David Hasselhoff 

Want to see what Surf is training or how little isk Surf has?  http://eveboard.com/pilot/Surfin%27s_PlunderBunny
Micheal Dietrich
Kings Gambit Black
#19 - 2012-08-29 19:19:30 UTC
Blane Xero wrote:
Ceaon was the guy on the forums posting about Bitcoins a lot. I doubt he was involved though.



I crack myself up sometimes.

Out of Pod is getting In the Pod - Join in game channel **IG OOPE **
Sidus Isaacs
Center for Advanced Studies
Gallente Federation
#20 - 2012-08-30 10:33:28 UTC  |  Edited by: Sidus Isaacs
Jim Era wrote:
so...bitcoins were a scam after all?

I never understood those lol



I think it is funny. Money systems like this was not going to make it far anyways.
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