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from the paying-a-large-"bill"-for-a-bitcoin-scheme dept.
Arthur T Knackerbracket has found an interesting story: Bogus Bitcoiners battered with US$12 million penalty in The Register.
The US SEC (Security and Exchange Commission) won its case against two Bitcoin companies — GAW Miners and ZenMiner — operated by Homero Joshua Garza that bilked 10,000 investors out of about $20 million in what was essentially a Ponzi scheme. The companies purported to sell shares in cloud-based Bitcoin mining machinery, but "the companies never owned enough computing power to be serious miners." The companies were hit with a $12 million penalty. Garza is not, however, off the hook as he is facing a separate criminal trial and he is in talks with the SEC about how to handle the claims lodged against him.
Here's the literal money quote:
Ironically, the Bitcoin price ended 2015 bouncing between US$400 and $450. Had the two companies simply bought Bitcoin with their $20 million, on today's $2,740 price for the crypto-currency there'd be around $140 million in the kitty.
(Score: 2) by AthanasiusKircher on Friday June 09 2017, @12:57PM (4 children)
LOL. Investing in Bitcoin? Sounds like they got precisely what they wanted to invest in! [ducks]
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[Cue posts describing in great detail the differences between pump-and-dump vs. pyramid vs. Ponzi schemes, as well as Bitcoin defenders denying there's anything weird about it. To be clear, I have nothing really against Bitcoin; I view people who invest in it just like people who invest in all sorts of very volatile stocks or whatever. Nevertheless, as a currency -- its nominal purpose -- it's never going to be widely successful unless it actually attains a reasonably stable valuation.]
(Score: 0) by Anonymous Coward on Friday June 09 2017, @02:16PM (1 child)
They wanted to invest in ducks?
(Score: 2) by bob_super on Friday June 09 2017, @06:45PM
French ducks quack: "Coin!"
TMYK...
(Score: 0) by Anonymous Coward on Friday June 09 2017, @03:38PM (1 child)
Every day, I'm amazed at how the suppos-ed "geeks and nerds" at both this site and /. fail to "see" that it's not about the "coin", it's about the blockchain - thus far "bitcoin" is winning; "bitcoin", itself, may be a "bubble" and may, one day, "burst" (i doubt it, but i'm not concerned), but the blockchain is here to stay, so I posit that it is both wise and prudent to "invest."
It's been at least 7 years since all the chicken littles have appeared on these fora, daily, to decry bitcoin. Meanwhile, millions upon millions of dollars have been made, millionaires have been created, yet it's always some alleged "geeks and nerds" decrying "Stay away from bitcoin! Ponzi! (lol at the utter ignorance at even understanding what 'Ponzi' is), Pyramid! Greed! Fraud!.
IT"S ABOUT THE BLOCKCHAIN, YOU FUCKING IDIOTS!
Is there any site out here that "geeks and nerds" can frequent without the posers?
So, I'm off to take a drive in my Tesla (cash). I'll be away from my mortgage-free house for a few hours. Thank you, fraudulent, greedy, ponzi, bitcoin. Oh, how I hate thee.
cheers,
(Score: 1, Funny) by Anonymous Coward on Friday June 09 2017, @03:57PM
lol, u didn't read ak's postscript b4 rant /lol