Re: OgNasty Ponzi passthrough and ponzi fans.. BTC losses everywhere he goes
Update:
I'm not sure how I missed this back then, but pirateat claimed to the SEC that he returned the full balance of a handful of investors, including OGNasty.
The following transcript is from page 35 of this document. Q = Question = SEC Investigator. A = Answer = pirateat40/Trendon Shavers.
OgNasty made this post (archive) on August 17, 2012:
Then on September 1, 2012 he edited in this update:
According to my calculations, as of August OGNastys pass-through had BTC2,638.25 invested total, and the reserve was at BTC65.
All the evidence, including the fact he went back and edited/deleted a ton of posts as soon as he knew I was looking into this), points to OGNasty receiving a full payout of BTC2,638.25 that belonged to the OGNasty Pass-Through investors from pirateat in August 2012 while everyone, including his investors, was learning that the whole thing was a scam. Knowing that his investors would assume that Pirateat40 had their investments, he only paid out the BTC65 reserve to them and kept the rest.
(Also, I had a bunch of years in this this thread as 2011, but they should have been 2012. I archived them all and then edited in the right year just now.)
I'm not sure how I missed this back then, but pirateat claimed to the SEC that he returned the full balance of a handful of investors, including OGNasty.
The following transcript is from page 35 of this document. Q = Question = SEC Investigator. A = Answer = pirateat40/Trendon Shavers.
Quote
Q So what activities did you undertake for Bitcoin Savings & Trust between August 2012 when you stopped taking deposits from investors and March or April of 2013?
A l immediately closed out the new accounts that had just recently started, retuned all their coins. Then kind of strategically based on how many coins | still had tied up, I worked to move some of the coins out. But, you know, with losing the large sum of coins, it made it very difficult to do that.
So I kept some of the coins to be able to trade so | could make coins to pay them back. And it took a long time.
Q And did you return any bitcoin to investors during this time period from August 2012 through March or April of 2013?
A Yes
Q So you retuned the deposits of newer account holders is that correct?
A That was. almost immediately afterward when I shut it down.
Q And did you return bitcoins to others during that time period?
A Yes.
Q Who?
A Actually hold on.
MR. MOUSTAKIS: For the record, the witness is referring to Exhibit 3.
A Jepham.
Q Can you spell that?
A J-c-p-h-a-m; Keefe, K-e-e-fLe; Seanbeaupre,
Q Can you spell that for us?
A S-e-a-n-b-e-a-u-p-r-e; Teek, T-e-8-k.
Q What is it that tells you in Exhibit 3 that you returned bitcoin to these investors?
A I'm just pulling them from memory.
Q Oh. So Exhibit 3 is simply refreshing your recollection far these purposes?
A Yes. Ognasty, O-g-n-a-s-ty; A-r-a-s-h-d, Brendio, B-r-e-n-d-i-o, BtcAdomains.
Q Can you spell that?
A B-t-c-4-d-o-m-a-i-n-s, Coin_toss, C-o-i-n-t-o-s-s, Fred0, F-r-e-d-o, Gave some. | haven't returned all of his. Same thing with Imsaguy, I-m-s-a-g-a-y.
Q You returned some but not all of his deposits?
A Correct. And then there's a bunch that aren't listed on there because the accounts were closed.
Q And all the other individuals you named you returned their entire principal amount?
A Their entire balance.
Q Entire balance.
A Yeah.
Q At the time of the shut down in August 2012?
A Yes.
Q Whatever that balance may have been.
A Correct.
Q And for Gigavps and Imsaguy you returned some but not all of their balance?
A Right.
Q How did you make the determination as to which investors to return bitcoin to and which not?
A Accounts that | physically knew there was pay VC -- a couple of the other guys that had these Pirate pass-thrus where their people were coming to me asking for coins and | had no way of knowing if they had coins with me or not. And so like I said, the brand new accounts, | shut those out and closed them out. paid them back initially. And then | went through and worked out the people that | had long relationships with and knew that they were good. | paid them a percentage based on how many coins they had with me.
Q So you gave priority to your long time investors in returning funds when you shut down Bitcoin Savings & Trust?
A l immediately closed out the new accounts that had just recently started, retuned all their coins. Then kind of strategically based on how many coins | still had tied up, I worked to move some of the coins out. But, you know, with losing the large sum of coins, it made it very difficult to do that.
So I kept some of the coins to be able to trade so | could make coins to pay them back. And it took a long time.
Q And did you return any bitcoin to investors during this time period from August 2012 through March or April of 2013?
A Yes
Q So you retuned the deposits of newer account holders is that correct?
A That was. almost immediately afterward when I shut it down.
Q And did you return bitcoins to others during that time period?
A Yes.
Q Who?
A Actually hold on.
MR. MOUSTAKIS: For the record, the witness is referring to Exhibit 3.
A Jepham.
Q Can you spell that?
A J-c-p-h-a-m; Keefe, K-e-e-fLe; Seanbeaupre,
Q Can you spell that for us?
A S-e-a-n-b-e-a-u-p-r-e; Teek, T-e-8-k.
Q What is it that tells you in Exhibit 3 that you returned bitcoin to these investors?
A I'm just pulling them from memory.
Q Oh. So Exhibit 3 is simply refreshing your recollection far these purposes?
A Yes. Ognasty, O-g-n-a-s-ty; A-r-a-s-h-d, Brendio, B-r-e-n-d-i-o, BtcAdomains.
Q Can you spell that?
A B-t-c-4-d-o-m-a-i-n-s, Coin_toss, C-o-i-n-t-o-s-s, Fred0, F-r-e-d-o, Gave some. | haven't returned all of his. Same thing with Imsaguy, I-m-s-a-g-a-y.
Q You returned some but not all of his deposits?
A Correct. And then there's a bunch that aren't listed on there because the accounts were closed.
Q And all the other individuals you named you returned their entire principal amount?
A Their entire balance.
Q Entire balance.
A Yeah.
Q At the time of the shut down in August 2012?
A Yes.
Q Whatever that balance may have been.
A Correct.
Q And for Gigavps and Imsaguy you returned some but not all of their balance?
A Right.
Q How did you make the determination as to which investors to return bitcoin to and which not?
A Accounts that | physically knew there was pay VC -- a couple of the other guys that had these Pirate pass-thrus where their people were coming to me asking for coins and | had no way of knowing if they had coins with me or not. And so like I said, the brand new accounts, | shut those out and closed them out. paid them back initially. And then | went through and worked out the people that | had long relationships with and knew that they were good. | paid them a percentage based on how many coins they had with me.
Q So you gave priority to your long time investors in returning funds when you shut down Bitcoin Savings & Trust?
OgNasty made this post (archive) on August 17, 2012:
Quote
Due to the news of BTCST closing, I have requested all funds from the account and will be returning them to depositors as soon as received.
I will be looking into options to keep the program running in one form or another, but most likely I will close this program down to focus on NastyMining. Thank you to all my depositors.
I will be looking into options to keep the program running in one form or another, but most likely I will close this program down to focus on NastyMining. Thank you to all my depositors.
Then on September 1, 2012 he edited in this update:
Quote
UPDATE:
Bitcoin Savings & Trust is officially in default and the reserve fund has been paid out to depositors.
Bitcoin Savings & Trust is officially in default and the reserve fund has been paid out to depositors.
According to my calculations, as of August OGNastys pass-through had BTC2,638.25 invested total, and the reserve was at BTC65.
All the evidence, including the fact he went back and edited/deleted a ton of posts as soon as he knew I was looking into this), points to OGNasty receiving a full payout of BTC2,638.25 that belonged to the OGNasty Pass-Through investors from pirateat in August 2012 while everyone, including his investors, was learning that the whole thing was a scam. Knowing that his investors would assume that Pirateat40 had their investments, he only paid out the BTC65 reserve to them and kept the rest.
(Also, I had a bunch of years in this this thread as 2011, but they should have been 2012. I archived them all and then edited in the right year just now.)