I had it all figured out once what he took in on this "deal" it was over twice the amount of the equipment costs getting close to the three times on this even taking into account the ponzi payments he made for the first month or so without the machines he should still have had double what the cost of the machine were laying around which the machines would have had to come out of so plenty of excess. That is unless he spends like a drunken sailor in a whorehouse on payday. BTW for those of you with a litigious nature search on unjust enrichment that concept as it applies to contracts just may be your best friend, and of course the old stand by back up plan issuing securities without a license not exactly an encouraged practice under the laws governing them as they now exist.
I never followed it that close. Is this actually true/documentable?
The original idea as I remember it was for something like 30000 shares @ 1 btc per FPGA rig on two of them, then giga goes to see the butterfly boys at their facility comes back and suddenly his idea goes to four rigs via private placement that time I believe couple of days-weeks or so later BFL announces ASIC. He then comes back for third bite at the time of the upgrade from FPGA to ASIC a no cost option to him he goes with unpaid upgrade at substantially lower than what he received for free and offers paid upgrade path to others for more hash power. That is the point in time I reported him as scammer to Maged. He pointed out to me that it is not the forums problem that people are making bad deals I pointed out to him that the forum facilitating such deals could lead to legal liabilities after that I notice the disclaimer they now have at the top of that sub-section to try to protect themselves from it. True yes documentation well different story as most well know this forum allows you to edit to your hearts content with seemingly no trail kept so as I have already suggested the way back machine may be of some use.