Patrick's Kraken fund might be an even more clear cut case that Patrick deserves a scammer tag. Patrick guaranteed those deposits, and it is clear that Patrick knew the Kraken assets were correlated and risky.

Approximately 75% of the assets in Kraken are bad Pirate debt via Payb.tc, PPT.A, PPT.B, and PPT.E (as later disclosed in his Kraken newsletter on October 14, 2012). This Pirate debt was purchased after Pirate had already defaulted. Joel can't argue that Patrick didn't know his Kraken assets were correlated, because Patrick specifically chose to put a significant portion of the fund in bad Pirate debt. Joel can't argue that Patrick didn't know the assets were risky, because Pirate had already defaulted.

Is there anybody that invested in the Kraken fund that has requested a withdrawal and hasn't been paid back in full? This might deserve a whole new thread since Kraken was a different fund.

https://bitcointalk.org/index.php?topic=100913.msg1102858#msg1102858