What if the PPT decided to invest the coins somewhere else? Most investors left their interest in the PPT.
Now that Pirate defaulted a malicious PPT could keep the coins, knowing that Pirate will be blamed for the loss, and get away relatively easy.
Again, this argument goes nowhere. Suppose this is true. Your damages are $0. So what difference does it make? Yes, if they could somehow have guessed correctly when Pirate would default, they could make a ton of money that way and nobody would have been harmed by it. So what?
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It's basically a case of the smart PPT operator realising that BS&T was a ponzi scheme and deciding that instead of losing his clients' coins to Pirate's ponzi he would keep them for himself, effectively running his own ponzi. So long as pirate's ponzi closes up shop before the PPT operator runs out of funds it all works out well for the PPT operator.