Quote from: TraderMJK on December 02, 2017, 03:58:04 PM

I have been carefully watching and researching before making an investment. Just before I was going to send something sizeable, something hit me and I sent you an unanswered PM about the gift card risk management.

According to the Google Docs link you provided, you have 1.426 BTC actively invested. At the rate right now, that's $15,500. (Even at a $9,000 BTC rate, that would be $12,834)

The amount PayPal is withholding is $800. So, where is the other $12,000-$14,000? $800 is like 5-6% of the total currently invested in your investment plan.

With the current principal invested you could cover that $800 by giving up a small part of the amount you take with each deal...say 10% for 8-12 BTC>gift card transactions.

I do seem to recall the plan to be buying discounted gift cards and selling them on Paxful. While your Paxful account has received recent positive feedback, there have been no active offers listed on your account for days (even from well before you received the PayPal message.)

The "first legit investor plan" was for you to sell BTC for discounted gift cards and you would sell those cards for a profit. I don't seem to recall mention of you margin trading with the investor funds. Quite frankly, that is gross mismanagement of investor funds by not following the plan people invested into.

I am sure you were well-intentioned; however, all things considered, I suspect you "ponzied out" by misusing funds instead of investing in discounted gift cards on Paxful. You also accepted some larger investments into the plan and had to use the small investments to cover that interest. I don't have the energy to do that analysis using your spreadsheet since it is now a defunct investment offering.

All things considered, there is a serious trust consideration here.

Updated post to include:

I'm tired and my math brain is still groggy, however, I ran some numbers using Lines 78-103 of the spreadsheet. Those lines seem to represent the best snapshot of time and activity.

In that snapshot of activity, the scheme took in 2.841 total BTC investments (26 investments)

It paid out 1.4606 BTC in return of capital and interest (15 investments)
(of the 1.4606 total paid out, 1.355 is return of capital and .1056 represents interest paid)

Still has 1.486 BTC of investor capital owing (11 investments)
Still has 0.14235 BTC in interest owing
1.486 + .14235 = 1.62835 owing

1.4606 (total paid out) + 1.486 (investor capital alone owing) = 2.9466 - 2.841 (total investments) = .1056
(Hmmm, .1056 is equal to the total amount of interest actually paid)

In about a month, he basically kept/spent/misused/bad traded/whatever 50% of the investments (~$15,000 at today's value) and threw up a misleading flag to end it.

I agree. Nowhere in the OP does it say that the funds are being used for margin trading, and i'm sure that everyone knows that margin trading is probably a lot more risky than trading gift cards on paxful or something like that. It's almost gambling.

Hopefully Sweeet will be able to come through with this. But as you said, this is mismanagement of investors money.

THey are expecting their funds to be used for one thing but he is using it for something else.