Quote from: stochastic on November 14, 2012, 12:18:01 AM

Quote from: bitcoin.me on November 14, 2012, 12:06:58 AM

Quote from: Namworld on November 11, 2012, 09:14:37 AM

Patrick defaulted @50% on capital, breaking a few terms of his offer:

Quote from: PatrickHarnett on August 15, 2012, 11:53:40 PM

This sits in "Securities" rather than my usual lending section thread because it is a little more aggressive in approach and not as reliable.

Based on some work I have been doing I believe there is space for this particular fund and because it is a little different labelling it Kraken seems appropriate.

Basic parameters:

Fund commences 19 August 2012.
Investments may be made in multiples of 100BTC.
Withdrawals may be made in multiples of 100BTC.
Contributed capital is backed by my personal funds.
Returns will be paid weekly (currently planning on Fridays) - no compounding or automatic reinvestment.
Target and maximum return 2.5% per week. (for the ponzi people, that would be 361% annually, but it's only 130% because it is non compounding.)
Minimum weekly return 0% - any losses will be funded personally.

You will need to request a unique deposit address and supply a unique return address. I will have a sensible limit on the number of investors because I don't want to spend my whole life doing weekly payments.
Returns obtained over and above 2.5% are taken as my fee - that's how I can afford to support the minimum return and "insure" the capital. If I have coins sitting idle, they don't lose money, but impact on the average return.

Obviously the question is "What am I doing with the coins?"
If I was to provide a simple answer like buying 50 BFL singles and going mining, or putting 10,000 coins into XYZ asset on GLBSE then there wouldn't be much science in that and it would ruin the market that I am looking at.
Also, I do expect people to assume funds might simply be going into BS&T and accuse me of feeding an illegal activity. Due to the vitriol that goes with that, this will not be an open thread because there will be no point debating that.

So what am I going to use funds for? Some will be going into my "vulture" capital business interests, some into some long-term BTC investments I have held in real-life ventures (such as an equipment manufacturer), some in BTC assets, a small amount of futures trading, some into various risk/reward adjusted investments that are available in the bitcoin world.

Edit: Currently 25 registered users. 18 currently paid.
Edit 19Aug: The largest commitment made was 1000 coins, and that was before the closure of one of the largest (and smartest) BTC operations. In fairness, I consider a 1,000 maximum per account is appropriate making the absolute maximum size of Kraken Fund 25,000.

Kraken Fund#2 wait list (several):
HonsetBob, Rolo TonyBrown Town, BinaryMage, aghori, EskimoBob, Onichan, LoweryCBS, coinft, Mousepotato, Goelmer, CecilNiosaki, bruiser, Gigavps, "pm page 122", Electricbees, Macboy80, Brunic, Coin.Karma, Litecoin, Simonk83, DeadTerra, mb300sd, ScottJ, REF, nave, Soros Shorts, ShadowAlexey, Cobra

265.8065 BTC currently held on wallet. Forfeiting the pass-through's 10% cut on interest.

See KRAKEN SPREADSHEET

Claimed holding (note it adds up to 81%):

This fund was started it appears to scam people into paying Patrick's PPT debts.
The fact he was going to invest in pirate was not known by investors and it is also supposedly guaranteed by his personal funds.
I had a few of the passthrough shares on glbse before it shut down and I feel that people were intentionally misled as they had no way of judging the risk involved with the investment.

Damn, you have really bad luck. In the future could you post your investments so others do not have to worry about being contrarian to you?

I am not surprised by all of this. If these people that are borrowing bitcoins are so credit worthy, why would they need to borrow bitcoins at such astronomic interest rates when interest rates are an all time low for USD. It is not that hard to convert USD to bitcoin.

Scammer tags seem to be for those that are unpopular or do not support the governance of the forums and less about if they actually committed fraud.

It was BitcoinRS funds. I picked up a few because Kraken supposedly offered a way wo diversify outside of bitcoin inot some of Patrick's other business, whatever that may be.

The fact he spent 75% of funds on his own debt is outright fraud. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/Complaint_Form.pdf/$file/Complaint_Form.pdf People should fill out this form if they want the Australian authorities to investigate.