Ninjastic
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Board Lending
Re: Bryan Micon's List of BTC Ponzi Schemes that should not be listed as "Lending"
by
miscreanity
on 30/07/2012, 08:42:56 UTC
Quote from: JoelKatz on July 30, 2012, 08:29:54 AM
It doesn't work that way. If a fraudster gives you another investor's money, you don't get to keep it. Every dollar you withdraw is a liability. False profits can be clawed back to repay current "investors". Fraudulent transfers can be undone.

http://www.boston.com/business/articles/2010/12/18/picower_estate_adds_72b_to_madoff_fund/
http://utahsecuritiesfraud.com/2010/08/02/clawback-lawsuits-how-investing-in-a-ponzi-scheme-can-bite-you-twice/

If you received payments from a Ponzi scheme, your interest payments were not in fact interest payments. They were fraudulent transfers of other people's deposits.

This applies to a different legal and monetary system than what has applied to Bitcoin so far. In another jurisdiction, the onus may be placed on the client to perform due diligence.

And how would profits be forcibly returned? What if off-blockchain transactions were conducted that broke the chain of ownership? We'd end up discussing taint again.

Also, something good coming from a Ponzi?

Quote
Picower, whose Palm Beach, Fla., foundation was a major contributor to medical research at the Massachusetts Institute of Technology and Harvard University...