Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt

theverge.com 27 Aug '12, 7pm

Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt

Remember pirateat40, the e-currency banker we speculated could be the Bernie Madoff of Bitcoin ? Well, it looks like he owes a lot of people money. On August 17, pirateat40 announced the closure of Bitcoin Savings & Trust , a virtual hedge fund that promised to pay high rewards to investors who parked their Bitcoins there. Ten days later, investors are still waiting to get paid and pirateat40 is on the defensive. "When I know, you will," says his away message in the fund's official chat room, an effort to quiet the loudening chorus of, "WHERE ARE MY BITCOINS ?" Pirateat40 consistently maintained that he made his money legitimately through secret investment strategies. The announcement that BS&T was shutting down was similarly vague and obtuse : The decision was based on the general size and overall time required to manage the transactions. As the fund grew there were large...

Full article: http://www.theverge.com/2012/8/27/3271637/bitcoin-savings...

Tweets

@fcassia » 05 Sep '12, 11am
RT @qwghlm: Bitcoin is basically a way of swindling all the stupidest smart people out of their money [link]
@fcassia » 05 Sep '12, 11am
RT @msgnet: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link]
@TopTheNews » 03 Sep '12, 10pm
@ErikVoorhees @stacyherbert Think she meant they are both ponzi schemes. The USD just hasn't fallen apart yet. [link]
@Doener » 03 Sep '12, 11am
RT @blicklog: Lese: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt | The Verge [link]
@WorkMJ » 03 Sep '12, 10am
Suspected Multi-Million Dollar Bitcoin Pyramid Scheme Shuts Down, Investors Revolt by @adrjeffries [link] cc @Krestenbuch
@EhandelPunktSe » 02 Sep '12, 9pm
@micaelwidell @Nilsson_Dan Inte hos pirateat40 hoppas jag ;) [link]
@SongHia » 02 Sep '12, 3pm
Mo bitcoins, mo problems. Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt. [link]
@propagare » 31 Aug '12, 6pm
RT @dHeinemann: "Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt" [link]
@michal_m » 30 Aug '12, 9pm
If anyone’s wondering what I’m on about… [link] /via: @skattyadz
@geeoharee » 30 Aug '12, 8pm
First EVE, now inevitably: RT @tomscott Blimey, it seems someone pulled off a $5million Bitcoin Ponzi scheme. [link]
@tomscott » 30 Aug '12, 8pm
Blimey, it seems someone pulled off a $5million Bitcoin Ponzi scheme. Top tip: don't send money to anonymous usernames. [link]
@qwghlm » 30 Aug '12, 8pm
Bitcoin is basically a way of swindling all the stupidest smart people out of their money [link]
@hannahnicklin » 30 Aug '12, 8pm
RT @flashboy: RT @moonpolysoft: Bitcoins were invented to teach libertarians what an unregulated market is like. [link]
@flashboy » 30 Aug '12, 8pm
RT @moonpolysoft: Bitcoins were invented to teach libertarians what an unregulated market is like. [link]
@jonkalak » 30 Aug '12, 4pm
RT @TechBrunchFR Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt | The Verge [link]
@NorbertBehrmann » 30 Aug '12, 6am
RT @Risk_Mgmt: Suspected million dollar #bitcoin Ponzi Scheme shuts down - [link]
@FRamabama » 30 Aug '12, 6am
RT @moneyscience: Suspected million dollar #bitcoin Ponzi Scheme shuts down - [link]
@ninavizz » 29 Aug '12, 10pm
RT @biker1337: People using #Bitcoin are as gullible as anyone else. Ponzi scheme collapses: [link] and [link]
@biker1337 » 29 Aug '12, 10pm
People using #Bitcoin are as gullible as anyone else. Ponzi scheme collapses: [link] and [link]
@ErrataRob » 29 Aug '12, 6pm
.@charlesarthur [link]
@Jacarandaboy » 29 Aug '12, 5pm
Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link] pirateat40=Bernie Madoff of Bitcoin?
@ErrataRob » 29 Aug '12, 5pm
RT @jaysonstreet: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt | The Verge [link] vi ...
@nyxpersephone » 29 Aug '12, 11am
RT @MylesPeterson: #Bitcoin scheme worth $5.6 million shuts down, money vanishes [link] via @slashdot
@MylesPeterson » 29 Aug '12, 11am
#Bitcoin scheme worth $5.6 million shuts down, money vanishes [link] via @slashdot
@avadiax » 29 Aug '12, 11am
The problem with bitcoins being unregulated. [link]
@opensussex » 29 Aug '12, 9am
[link] "Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt" if it sounds to good to be true ..
@ReginaldQuill » 29 Aug '12, 4am
RT @beala: What? You mean Pirateat40's anonymous Internet "hedge fund" wasn't legitimate? You just can't trust anyone these days. [link]
@andrewzimmer906 » 29 Aug '12, 3am
@dandrewsify Heh, who would have thought.. [link]
@Fin_Serv » 28 Aug '12, 7pm
The BitCoin pyramid scheme crashes and burns [link] #payments #riskmanagement #fraud
@Maxito_Videla » 28 Aug '12, 3pm
Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link] #BITCOINS #PONZI #POSTA?!
@brozier » 28 Aug '12, 3pm
@brozier Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt #ip [link]
@joshuawentz » 28 Aug '12, 3pm
Even Fake Real Money Internet Dorks are easily scammed: [link]
@wumao » 28 Aug '12, 3pm
Finally, finally, poetic justice [link]
@jjstrat3 » 28 Aug '12, 2pm
“@verge: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link]” It’s sooooo surprising...
@marcregan » 28 Aug '12, 2pm
Guy on internet named pirateat40 running Bitcoin fund promising 7% / wk return turns out a fraud. Huh, that's weird. [link]
@simonmenashy » 28 Aug '12, 11am
There's a surprise: Some dodgy #Bitcoin operation turned out to be a pyramid scheme after all, walked away with $6m USD [link]
@dgwbirch » 28 Aug '12, 11am
Party like its 1699 RT @tek_fin: 7% a week RT @PaymentGal: Bitcoin pyramid scheme shuts down, investors revolt | [link]
@fieritacatalano » 28 Aug '12, 10am
RT @arisetton: Otro Ponzi...y van.. RT @PaymentGal: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link]
@MSBCompliance » 28 Aug '12, 10am
RT @tek_fin: 7% a week ...... RT @PaymentGal: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt | [link]
@tek_fin » 28 Aug '12, 10am
7% a week ...... RT @PaymentGal: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt | [link]
@arisetton » 28 Aug '12, 10am
Otro Ponzi...y van.. RT @PaymentGal: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link]
@tek_fin » 28 Aug '12, 10am
RT @PaymentGal: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt | [link]
@Compliance_C » 28 Aug '12, 10am
RT @StanleyEpstein: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link] #citadv #bank
@StanleyEpstein » 28 Aug '12, 9am
Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link] #citadv #bank
@avbelow » 28 Aug '12, 9am
RT @haentz: A Bitcoin ponzi scheme? Sometimes the stupidity of people still amazes me… [link]
@RoccoRamos » 28 Aug '12, 9am
#Bitcoin pyramid scheme strikes back [link] La piramide colpisce ancora
@haentz » 28 Aug '12, 9am
A Bitcoin ponzi scheme? Sometimes the stupidity of people still amazes me… [link]
@Wesbadke » 28 Aug '12, 7am
RT @rickmans: Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt [link]
@anonstyle » 28 Aug '12, 7am
Ahaha une arnaque pyramidale de bitcoins ! [link]
@wundersooner » 28 Aug '12, 5am
It doesn't matter what "currency" a scheme uses, if it offers a annualized rate of return of 364% it's a fraud [link]