So I originally posted this in this thread: https://bitcointalk.org/index.php?topic=518602.0;topicseen  But of course it was deleted since the pumper is self-moderating the thread.

Has anyone actually received their principal back from this?  20% per month = double your money in 5 months.  Madoff promised 0.83% per month using magical arbitrage strategies and the smart people knew that couldn't be real.

What is the total size of the trading fund?  If you're doing arbitrage with your $1,000 account I could see a 20% return being possible.  But arbitrage opportunities do not scale.  There is a limited amount of arbitrage available in the market and lots of people competing to get it.  And according to bitcoin-trader.biz they are doing manual trading.  How could it be possible for them to get the large amount of arbitrage profits they'd need for those level of returns, especially when they are at a huge disadvantage to automated traders?

Plus they are reporting returns of around 1% per day.  That's a 3778% APY when compounded daily (https://en.wikipedia.org/wiki/High-yield_investment_program).  If they were getting those kinds of returns they wouldn't need to take anybody else's money.  1 BTC invested at those rates in April 2013 would be worth 4,100,974,661,233,895 BTC today.  Or you know, 300,000,000 times the total supply of Bitcoins.

I'm calling it: PONZI

And also: