Financial pyramid for 500 thousand bitcoins closed

The Bitcoin system, a popular cryptographic online currency recently, with a unit price of about $ 11, served as a tool for the organizers of the classic financial pyramid. According to rumors, the user with the nickname pirateat40, whose activities have long been compared with the work on the Ponzi scheme of Bernard Madoff, held in his hands half a million bitcoins, which is about 5.5 million dollars.

Bitcoin is a distributed cryptocurrency system, the success of which is largely due to the support of the community of interested enthusiasts. Bit-coins do not have a central regulator, and are freely traded on Internet exchanges, while miners are engaged in mining bitcoins - users who provide the power of their computers to operate cryptographic algorithms for finding hashes of the desired degree of uniqueness.

Using Bitcoin technology, at the end of last 2011, a user with the nickname pirateat40 organized a HYIP called Bitcoin Savings & Trust , in which they promised to pay seven percent a week to all those who invest their bit-coins. This means that in 10 weeks the amount of the deposit could double.
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Pirateat40 itself did not disclose sources of income, talking about some legitimate secret private investment. Of course, suspicions of fraud under the Ponzi scheme immediately arose. According to an early skeptic, Brian Micon, the volume of funds has doubled since April of this year.

Despite the status of work by invitation only, a large number of people have invested in BS & T. On August 17, pirateat40 announced the closure of the system, justifying it by the fact that with the growth of the fund it took more and more time to conduct transactions, the huge volumes of which seriously slowed down the work and the withdrawal of funds for investment. The message of the organizer immediately caused panic and demands to return the funds.

The organizer of the scheme said that he had at the time of closing 500 thousand BTC at his disposal, which in current prices on the stock exchanges is about 5.5 million dollars.

After BS & T was closed, pirateat40 immediately promised to refund the invested bitcoins to investors within a week, however, recognizing that at the moment it does not have the necessary funds. Usually payments were made on Mondays, but both last and this week, no payments or refunds were received. Investors complain that intermediary systems that have invested coins in Bitcoin Savings & Trust are closing down . At the moment, the return of bitcoins in the foreseeable future is not promised.

Even after ten days, some investors remain optimistic, imagining various scenarios for deceived investors in a typical way, while others have begun an active hunt for pirateat40. It is believed that the creator of the pyramid lives in Texas.

Such activity in Bitcoin reasserts the system as a tool for fraudsters. From the very beginning of this network, the issue of ensuring security and combating crimes was absent, which is easily explained by cryptographic anarchism of the currency functioning scheme.