Quote from: augustocroppo on November 11, 2012, 04:05:12 AM

Quote from: bitcoin.me on November 11, 2012, 03:12:44 AM

PH deserves a scammer label for investing customers money into pirate and claiming it was backed by his own funds which turns out to be patently false in the case of Kraken fund at least. He deserves one as much as NcKrazze and others who did exactly the same bait and switch.

Of course, where is the evidence which indicates that?

The Kraken fund was supposed to be 100% backed by his personal funds. (Note to self: Why would an investment ever promise 100% backing of losses and still send you profits? What's in it for them?)

Well, as it turns out, there's no such thing as a free lunch.

An email was sent by PatrickHarnett two days ago to fund investors that the 100% backing didn't really exist. Since a large percentage of the fund was put into pirate debt, Kraken is now officially in default. The higher of 100 BTC or half the pending balance of each account has already been paid back, from liquidation of personal assets. This allegedly adds up to 75% of the entire fund value. There is still a promise that the remaining 25% will be paid back, if ever recovered from the "toxic" and illiquid assets held.

I'm not sure if the above email should be made public, but any of the Kraken investors can attest to the above. Even if the Starfish BCB issue is ignored entirely, I believe a scammer tag is appropriate purely on the basis of misrepresentation of the Kraken fund.