Three men are charged in $722 million cryptocurrency fraud

erek

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Stealing is lame.

"Three men were charged by U.S. prosecutors with helping run a $722 million cryptocurrency fraud that amounted to a “high-tech Ponzi scheme.”

From 2014 until this month, the men operated BitClub Network, which solicited money from investors in exchange for shares in purported cryptocurrency mining pools and rewarded them for recruiting new investors, according to prosecutors."


https://www.msn.com/en-us/money/markets/three-men-are-charged-in-dollar722-million-cryptocurrency-fraud/ar-BBY2zgI
 

Mega6

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This is why I stopped messing with bitcoin. Everyone scams everyone....
A ponzi scheme can be played off of anything.. real estate, cash, stocks. Blaming crypto is short sighted and a shallow analysis. Proves your knowledge of cryptocurrency is as good as an investor in this scam.
 
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Bawhahaha suckers!
Never saw the point of bit-coins. Pay for hardware and power to generate coins of an imaginary currency that fluctuates up and down in value.
 

elite.mafia

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A ponzi scheme can be played off of anything.. real estate, cash, stocks. Blaming crypto is short sighted and a shallow analysis. Proves your knowledge of cryptocurrency is as good as an investor in this scam.
....
Dude, I've followed Bitcoin since 2012. In that time I've seen COUNTLESS massive scale scams.... from mtgox, btc-e, BITCONNNNEEEEEEEEEECT, butterfly labs, binance list goes on and on and on....
 

Mega6

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....
Dude, I've followed Bitcoin since 2012. In that time I've seen COUNTLESS massive scale scams.... from mtgox, btc-e, BITCONNNNEEEEEEEEEECT, butterfly labs, binance list goes on and on and on....
And that’s why anyone with a brain doesn’t keep crypto in the cloud.
 

elite.mafia

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And that’s why anyone with a brain doesn’t keep crypto in the cloud.
The money I had stolen wasn't being stored on a wallet in the cloud, it was in the middle of being transferred.... then poof, site is gone...
 
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auntjemima

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You did it all at once. Huh. Bad move.
Sooooooo it's acceptable because he transfered money all at once? Next time you transfer a large sum of cash between your bank, or a credit card or a line of credit I hope it just goes *poof*.. I mean, shouldn't have done it all at once.
 

Mega6

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Sooooooo it's acceptable because he transfered money all at once? Next time you transfer a large sum of cash between your bank, or a credit card or a line of credit I hope it just goes *poof*.. I mean, shouldn't have done it all at once.
So now crypto is supposed to be a bank, just a minute ago it was a Ponzi scheme. Make up your minds.

Anyone in the right frame of mind would parcel it out. It’s called mitigation.
 

Krenum

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Men charged in Ponzi Scheme, while stealing money from a Ponzi Scheme, makes sense...
 

NickJames

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So now crypto is supposed to be a bank, just a minute ago it was a Ponzi scheme. Make up your minds.

Anyone in the right frame of mind would parcel it out. It’s called mitigation.
What we're saying is Bitcoin is not as safe as a bank and as bad as a Ponzi scheme. My recommendation? Make some money on it and get out. Nobody with a rational mind should keep their liquid in Bitcoin.
 

[21CW]killerofall

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So now crypto is supposed to be a bank, just a minute ago it was a Ponzi scheme. Make up your minds.

Anyone in the right frame of mind would parcel it out. It’s called mitigation.
Anyone in the right frame of mind would not have even bothered with cryptocurrency unless it was their play money.
 
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auntjemima

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So now crypto is supposed to be a bank, just a minute ago it was a Ponzi scheme. Make up your minds.

Anyone in the right frame of mind would parcel it out. It’s called mitigation.
No one ever said Bitcoin is a ponzi scheme. The specific incident in this article is a ponzi scheme. People treated MtGox like a bank. So transferring large sums should be safe and secure. You wouldn't allow it from your bank and you certainly wouldn't go "oh well, should have done smaller transactions I guess". You would be pissed.
 

elite.mafia

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Sooooooo it's acceptable because he transfered money all at once? Next time you transfer a large sum of cash between your bank, or a credit card or a line of credit I hope it just goes *poof*.. I mean, shouldn't have done it all at once.
Seriously is this dude for real... How can anybody actually believe that I'm at fault for being scammed by reputable organizations that were legit for over a year....
 

Dark12

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Seriously is this dude for real... How can anybody actually believe that I'm at fault for being scammed by reputable organizations that were legit for over a year....
Because at hardforum the general consensus is that crypto is bad.

I think it has to do with the average age of users here.
 

Mega6

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No one ever said Bitcoin is a ponzi scheme. The specific incident in this article is a ponzi scheme. People treated MtGox like a bank. So transferring large sums should be safe and secure. You wouldn't allow it from your bank and you certainly wouldn't go "oh well, should have done smaller transactions I guess". You would be pissed.
"I" would have parceled it out. Just saying "I". I dont treat anything crypto related as a bank. Because it's NOT. Other people did - and some got burned. Not sure why you woukd treat an emerging technology that's brand new like "Fort Knox".
 

Mega6

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Seriously is this dude for real... How can anybody actually believe that I'm at fault for being scammed by reputable organizations that were legit for over a year....
Again, I'm not blaming YOU. I am merely stating what "I" would do. "A year of solid reputation" is nothing in the banking world.

It's all perspective, and truly as mentioned before "Play Money". So stop being so defensive because I didn't take your bitcoin or whatever. If you didn't want anyone else's perspective on your situation - then you shouldn't have posted it on a message board. Although it may not sound like it - you have my sympathy.
 

elite.mafia

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Again, I'm not blaming YOU. I am merely stating what "I" would do. "A year of solid reputation" is nothing in the banking world.

It's all perspective, and truly as mentioned before "Play Money". So stop being so defensive because I didn't take your bitcoin or whatever. If you didn't want anyone else's perspective on your situation - then you shouldn't have posted it on a message board. Although it may not sound like it - you have my sympathy.

...Okay dude...
 

Sycraft

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Seriously is this dude for real... How can anybody actually believe that I'm at fault for being scammed by reputable organizations that were legit for over a year....
Because they weren't legit. Crypto currency organizations have no regulation, no oversight. It is just a bunch of people, often you don't even know who they are, saying "Trust me, this is legit, I got this." Real banks, real exchanges, they have regulators overseeing them, they have rules they have to follow, they have reporting requirements they have to meet, etc. There is some assurance of legitimacy, and thus you have a reason to be surprised if you are ripped off. Likewise there is often some kind of insurance (like the FDIC) for if that happens. However that is not the case with crypto currency. It is all just whatever, and that attracts scammers, thus you shouldn't be that surprised if you get scammed.

It is like if you go and buy a TV from Best Buy and it turns out to be a knockoff that doesn't work, well then I can understand why you'd be surprised and angry and I'd support you. After all, they are legit and should check their suppliers. If you buy a TV out of a van from a shady guy in a parking lot and it turns out to be a knockoff that doesn't work, I'm going to ask you "What did you expect?"
 

Dark12

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Because they weren't legit. Crypto currency organizations have no regulation, no oversight. It is just a bunch of people, often you don't even know who they are, saying "Trust me, this is legit, I got this." Real banks, real exchanges, they have regulators overseeing them, they have rules they have to follow, they have reporting requirements they have to meet, etc. There is some assurance of legitimacy, and thus you have a reason to be surprised if you are ripped off. Likewise there is often some kind of insurance (like the FDIC) for if that happens. However that is not the case with crypto currency. It is all just whatever, and that attracts scammers, thus you shouldn't be that surprised if you get scammed.

It is like if you go and buy a TV from Best Buy and it turns out to be a knockoff that doesn't work, well then I can understand why you'd be surprised and angry and I'd support you. After all, they are legit and should check their suppliers. If you buy a TV out of a van from a shady guy in a parking lot and it turns out to be a knockoff that doesn't work, I'm going to ask you "What did you expect?"
Understandable.

What kinda disgusted me was people saying everyone that lost money deserved it.

I can't imagine saying something like that to someone who lost their shirt.
 

$trapped

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The first minute says it all.

Everyone here who isn't wealthy and invests in crypto is nothing more than a gambler. If that's you, good luck to you, but if you lose your shirt that's on you for not knowing what you were getting involved in.
 

Sycraft

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Understandable.

What kinda disgusted me was people saying everyone that lost money deserved it.

I can't imagine saying something like that to someone who lost their shirt.
I can see how that goes too far, and I won't say people "Deserved it". However I can understand how others feel they did. The whole "You play with fire you get burned," thing. As with most scams, it relies not only on the greed of the scammer, but of the greed of those getting scammed. People often willfully ignore warning signs, and straight out warnings from others, when they think they are going to get rich. So it is with lots of crypto stuff. There are all kinds of people saying "Danger! This shit is an unregulated house of cards with all kinds of manipulation, insider trading, scams and here is evidence!" and the response is "You are just a hater and/or stupid, I'm going to get rich and you'll be jealous." So I can see where people are coming from when they think the victims deserved it.

Me, I have some sympathy, but not a lot. Like I said, it takes some willful ignorance of what is going on not to see this shit as shady. Like in my TV example I am not going to say you deserved to get screwed and have a broken TV if you bought it from a dude in a van, but I am going to say "Well what did you expect? Did you REALLY think that was an above board transaction, or did you think that the guy was ripping someone off like a store or distributor, and just not ripping you off?"
 
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