The “Strong Smell” Of Fraud From One Bitcoin Miner Maker

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The black eyes just keep rolling in for the bitcoin industry.

Customer orders, totaling millions of dollars, were significantly delayed or never fulfilled. Through it all, the company insisted that mere manufacturing delays were to blame. However, suspicion never died down. In fact, it's getting worse after it came to light that Butterfly Labs' largest shareholder—a man who is a company co-founder, current "Innovation Officer," and member of the board of directors—pled guilty in 2010 to one count of mail fraud (PDF) for his involvement in an international, multi-million dollar lottery scam.
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Good to see more of the giant scam and criminal enterprise of bitcoins getting the negative attention it needs to discourage unsuspecting people from being involved and adding potential value to global crime syndicate operations.
 
The problem with Cryptocurrency's is they are low-life scumbag and anti-government nut magnets.
 
nvgrim said:
Cash is pretty anonymous.No paper trail left behind.
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Cash is paper.

Anyway, it's good to see fewer and fewer people blindly rushing to defend bitcoins and compare it to all manner of things which somehow make it all better in their minds.
 
mashie said:
You can't send it in an e-mail.
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Yeah but with bitcoin there is a public ledger for everyone to see,there is no ledger for cash. Yeah the wallets are address are anonymous,but you can see who sent what to any address.
 
nvgrim said:
Yeah but with bitcoin there is a public ledger for everyone to see,there is no ledger for cash. Yeah the wallets are address are anonymous,but you can see who sent what to any address.
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Because a public ledger that isn't controlled by a trusted international organization is trustworthy. If it were operated by the UN and they could be linked to a specific person, there'd be a lot more credibility.
 
In a hot new market, there will always be despicable people coming in to see who they can fool and what they can get away with. It will die down as soon as some of these guys are put in jail.
 
CreepyUncleGoogle said:
Because a public ledger that isn't controlled by a trusted international organization is trustworthy. If it were operated by the UN and they could be linked to a specific person, there'd be a lot more credibility.
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And they can't very easily at all...that's one of the point of creating bitcoins. Throwing that public ledger excuse out there is really pointless.
 
CreepyUncleGoogle said:
Because a public ledger that isn't controlled by a trusted international organization is trustworthy. If it were operated by the UN and they could be linked to a specific person, there'd be a lot more credibility.
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"Operated by the UN" + "credibility"?

WOW

:rolleyes:
 
Even as Bitcoin is swirling down the toilet desperately grasping at the porcelain, the defenders and their virtual wallets are really having a hard time with denial. It's over folks. Hope you sold your bit coins to the next sucker otherwise the sucker is you!
 
Unfortunately currency is just another one of those things that big gov't does right, like the military, healthcare, infrastructure, etc. While there is nothing bad about bitcoins themselves, we simply cannot rely on the populace to police/govern it themselves. Too much greed and corruption is present in society that a central figurehead is required to ensure some modicum of fairness.
 
thebufenator said:
"Operated by the UN" + "credibility"?

WOW

:rolleyes:
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Who operates it now? Miners? That's a lot more credible. :rolleyes:

It needs international regulation linked to a personal identity and human-based transaction approval that can get funded with like 10% of the transaction cost and it'll get legitimate quickly. Once it can be regulated and taxed, it'll be okay and work fine.
 
fdiaz78 said:
Even as Bitcoin is swirling down the toilet desperately grasping at the porcelain, the defenders and their virtual wallets are really having a hard time with denial. It's over folks. Hope you sold your bit coins to the next sucker otherwise the sucker is you!
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It has actually been going back up again recently.........
:eek:
 
thebufenator said:
It has actually been going back up again recently.........
:eek:
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It doesnt even matter,every negative story that [H] post about BTC has the same people coming in here saying the same thing about how its going to fail,blah blah blah. There is no point in arguing with them. And luckily i have creepyunclegoogle blocked so i wont have to see whatever retarded responses he post.
 
Some of the people posting here are funny :D

On the note of Butterfly Labs, anyone who bought from them had the blinders on. The signs were there from the get go; anyone who continued to purchase after the fact was asking for it.
 
nvgrim said:
It doesnt even matter,every negative story that [H] post about BTC has the same people coming in here saying the same thing about how its going to fail,blah blah blah. There is no point in arguing with them. And luckily i have creepyunclegoogle blocked so i wont have to see whatever retarded responses he post.
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And the same people defending it blindly while ignoring every single warning, corrupt (insert latest case here), common sense arguments and factual rebuttals. There is no point arguing with 'cough' them either. Its to the point of being actually laughable now.
 
If having "shady" and illegal uses was a valid argument for a currency or object of value to be a poor choice or bad idea...

Then gold and cash and most EVERYTHING is a poor choice of value or usage as currency.

Though I must be "nutz" defending bitcoin... I mean there never has been scammers in the gold rush or counterfeiter of cash/coin. Right??? Right???? oh wait no I was wrong there were tons of those too.

BTW I am not defending bitcoin as much as calling out the errors in logic. I personally believe BTC is a good idea but does have some flaws.

Yet almost anything that is "HOT" and new is a magnet for scammers, criminals etc. Heck I am sure there was even Beanie-baby counterfeits and scams going around when it was hot.

Bitcoin is pretty similar to gold rushes... The capital companies generally make the most money same with early adopters... everyone else in the rush mostly gets screwed as the market matures.
 
nvgrim said:
It doesnt even matter,every negative story that [H] post about BTC has the same people coming in here saying the same thing about how its going to fail,blah blah blah. There is no point in arguing with them. And luckily i have creepyunclegoogle blocked so i wont have to see whatever retarded responses he post.
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While that would be a fairly adult thing to do, pretending to do it and then loudly claiming over and over that you are to make yourself feel better is kinda funny. :D
 
eth3ton said:
Where the fuck is the BCDF (Bitcoin Defense Force)?!
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buying bitcoin

these stories have all been about third parties, not the bitcoin protocol.
this has been pointed out ad nauseum, but falls on deaf ears.

people are too stupid to not conflate the two.


lets all stop using gasoline powered cars because toyota had a safety recall.
see? idiotic.

and fucking butterfly labs? seriously? they've been a joke forever.

dyodd
 
The problem with crypotcurrency's that makes it different than other hot markets, items, etc is that for a currency its not regulated, its anonymous and it is international, which creates a regulation nightmare. On top of that your going to lose 95% of your miners after the difficulty gets to high. its a get rich quick scheme for the majority. Not sure how "good" of an idea it actually is without the protection of current fiat currency's.
 
CMadki4 said:
Same here. I believe he should get an award for being on the most member's ignore list.
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Now, If only there was a way to ignore him when someone is baited into quoting one of his posts...
 
CreepyUncleGoogle said:
While that would be a fairly adult thing to do, pretending to do it and then loudly claiming over and over that you are to make yourself feel better is kinda funny. :D
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Kind of funny that you are directly responding to a person who just said they have you on their ignore list.

I would never ignore you... your posts and the people reacting to them are too damned funny ;).
 
pcjunkie said:
The problem with crypotcurrency's that makes it different than other hot markets, items, etc is that for a currency its not regulated, its anonymous and it is international, which creates a regulation nightmare.
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That's a feature.

pcjunkie said:
On top of that your going to lose 95% of your miners after the difficulty gets to high. its a get rich quick scheme for the majority. Not sure how "good" of an idea it actually is without the protection of current fiat currency's.
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Mining goes down = reward goes up. Pretty simple.
 
Term-X said:
On the note of Butterfly Labs, anyone who bought from them had the blinders on. The signs were there from the get go; anyone who continued to purchase after the fact was asking for it.
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This seems to be common language about Bitcoin partners going bad. The thing is that when most people make an investment or a purchase they do so with the belief that the worst thing that can happen is:

Investment - they lose their money because the investment becomes worthless.

Purchase - they receive a refund.

Mt. Gox had millions of dollars in bitcoins. Butterfly Labs had millions of dollars in sales. So we aren't talking about small operations here that got the better of a couple of people. Mt. Gox was the largest BTC exchange and based on their sales I imagine Butterfly Labs was one of the largest sellers of mining equipment. Sure the hardcore neckbeards among the mining industry may be active enough in community groups to hear the early problems and get out. The casual investor/ miner who goes with the masses likely won't find out until its too late.

These are major red flags and the BTC stories that are making the rounds on common news websites. Do you honestly think there is more than an infinitesimal chance BTC becomes mainstream? Millions of dollars lost in an industry run by neckbeards with zero financial literacy. Sign me up for that!
 
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