Canadian Money Forum banner

121 - 140 of 151 Posts

·
Registered
Joined
·
12,538 Posts
The sad part is that bitcoin and the other fake crytocurrencies will be around as long as people are gullible enough to trade their real money for them.
 

·
Registered
Joined
·
16,672 Posts
Wow! This is really interesting info.

He soon became enthralled with the bustling site, known as TalkGold, where fly-by-night promoters and gullible investors could connect. Mr. Cotten made nearly 2,000 posts over the next decade. Hidden behind fake names and software to obscure his location, he experimented with shady ventures of his own and pushed them on the forum.

Mr. Cotten’s early online activities, which are previously unreported, proved to be an education of sorts. He apparently launched several schemes – and occasionally ran into trouble. “I sincerely ask that everyone remain calm,” reads a post from his sceptre account in 2004, when he was just 15, in what looks like a scramble to return money to at least 235 investors.
. . .
Mr. Cotten also used money from Quadriga to fund an indulgent lifestyle, travelling the world with his wife, Jennifer Robertson, often flying on private jets. The couple acquired about $12-million in assets, including more than a dozen properties, a Cessna airplane and a yacht.

Over three years, Mr. Cotten liquidated $80-million worth of bitcoin through an offshore exchange, some of which came from Quadriga.
Dead or not, looks like he was an established con artist. He started pretty young. Maybe if he didn't engage in so much shady activities, he might have survived longer? Crohn's disease is made worse by heavy stress. I would imagine he might have felt some stress from constantly conning people and stealing their money.

Bitcoin and crypto currencies certainly seem to attract these kinds of people. But you also have to think: how many other people we do business with, or who are currently in executive positions at companies, have beginning similar to Cotton ... trying to run scams since they were kids?
 

·
Registered
Joined
·
16,672 Posts
Also, I call dibs on identifying Quadriga as a scam/con back in January 2019, long before the auditors figured out the CEO was stealing all the money. Post #5

As I wrote back then (and wrote in 2018 in another thread) through my own investigation, I had found that Quadriga had virtually no Canadian presence and was operating their infrastructure out of the Bahamas. Cotten himself was spending a lot of time there, which I found traces of in meeting schedules & agendas posted online.

I found the Bahamas link a year earlier in 2018:
https://www.canadianmoneyforum.com/showthread.php/106425-Bitcoin?p=1828362&viewfull=1#post1828362
 

·
Registered
Joined
·
402 Posts
Also, I call dibs on identifying Quadriga as a scam/con back in January 2019
Well congrats. You were also all over HCG two years ago too. How did those thoughts and predictions work out for you? Instead of making predictions such that I could come back two years later to joyfully claim "told you so" I basically said "I'm in at $7" and then shut my mouth.
 

·
Registered
Joined
·
60 Posts
It was a tossup couple years ago for me, either Quadriga or coinsquare...after a few months of researching online and getting multiple private msgs telling me to stay far away from quadriga when inquiring about it....I went with coinsquare. It turned out to be great to deal with! Thankgawd I never went with the ripoff! Quadriga did seem shady as I started asking them questions and emailed in my i.d. to confirm identity..took 7 weeks to confirm lol....then I never visited the site again.

So much money just swindled away with ease and spent carelessly....can you claim it as a loss on your taxes at least lol.
 

·
Registered
Joined
·
16,672 Posts
I still have my doubts about whether Cotten is really dead. This guy is a life long con artist since age 15.

He was supposedly opening an orphanage in India. Really? Charity work in a third world country? That's awfully generous and altruistic for a man who's dedicated his life to ripping off people.
 

·
Registered
Joined
·
743 Posts
I still have my doubts about whether Cotten is really dead. This guy is a life long con artist since age 15.

He was supposedly opening an orphanage in India. Really? Charity work in a third world country? That's awfully generous and altruistic for a man who's dedicated his life to ripping off people.
That has been my impression as well. He is okay enough to go overseas, then has Crohn's disease flare up or complications, dies in a private clinic, the doctor there says he died, no other confirmation of identity, no autopsy there or here, his funeral is closed-casket ....

I think the first thing the authorities ought to do is see who is in the casket.
 

·
Registered
Joined
·
16,672 Posts

·
Registered
Joined
·
12,538 Posts
I remember when BreX collapsed. A lot of people at work who never invested in anything before were investing everything they had and borrowing more to buy the shares.

After it collapsed, I was with some buddies in Grand Cayman Island. We had rented a jeep and were scooting around looking at the gated mansions on the ocean.

We pulled the jeep into the upscale marina and country club and there was geologist John Felderof walking along. We passed right by him and I knew who he was.

All the people who bought shares in BreX got slaughtered. Many people at work lost everything and owed a lot of money.

One guy had saved and invested since he was 18 years old and lost it all.....over a hundred thousand dollars. Another guy had borrowed $50,000 from his mother.

And there was Felderhof, who was the geologist claiming they found a massive gold strike when in fact he had peppered the core samples........living the good life.

I suspect Cotton and his pal are living the good life as well. His "partner" was convicted in the US of identity theft, so they are probably living under assumed names somewhere.

It appears that John Felderhof came back to Canada after a time among the wealthy in the Cayman Islands and was acquitted of all charges. Some crimes do pay well.

https://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/the-bre-x-case-finally-closes/article18124172/
 

·
Registered
Joined
·
12,538 Posts
Bitcoin is a capable criminal's nirvana. The anonymity, lack of understanding by law enforcement, and complexity of trying to follow the money makes it easy for criminals.

Despite hundreds of millions (perhaps billions) of dollars gone missing, nobody has ever been convicted of the thefts or the trading fraud on the exchanges.

The only major conviction was to Ross Ulbricht who operated the illegal dark Silk Road website selling drugs, guns and murder using bitcoins as the currency.

He was sentenced to a double life plus 40 years in prison without parole for a litany of charges including paying for a murder he believed had taken place at his direction.

The "hit man" was in fact an FBI agent. They nabbed him at the San Francisco Public Library with his laptop open and logged in. Bye.......Ross.

https://en.wikipedia.org/wiki/Ross_Ulbricht
 

·
Registered
Joined
·
3,368 Posts
Bitcoin is a capable criminal's nirvana. The anonymity, lack of understanding by law enforcement, and complexity of trying to follow the money makes it easy for criminals.

Despite hundreds of millions (perhaps billions) of dollars gone missing, nobody has ever been convicted of the thefts or the trading fraud on the exchanges.

The only major conviction was to Ross Ulbricht who operated the illegal dark Silk Road website selling drugs, guns and murder using bitcoins as the currency.

He was sentenced to a double life plus 40 years in prison without parole for a litany of charges including paying for a murder he believed had taken place at his direction.

The "hit man" was in fact an FBI agent. They nabbed him at the San Francisco Public Library with his laptop open and logged in. Bye.......Ross.

https://en.wikipedia.org/wiki/Ross_Ulbricht
Where are you getting your information on Bitcoin.

Bitcoin is completely public with no anonymity.
Every single transaction is permanently published to the world.
For example this morning at 5:20 the following transactions happened.
https://www.blockchain.com/btc/block/000000000000000000045b45d0ac4c5fff2f97e7b7ec3b0324ce3b1c092442bc

It's law enforcements dream currency. Just link the account number to the person of interest and you know where all their money came from and went to.

This is specifically the big risk with bitcoin right now.

There is a legitimate argument that if you have bitcoins in your possession from a blacklisted entity (Sanctioned government or group), you have a problem.
https://www.coindesk.com/goodbye-fungibility-ofacs-bitcoin-blacklist-remake-crypto
 

·
Registered
Joined
·
12,538 Posts
The blockchain doesn't tell you who is making the transactions or where the money is coming from or going to. It only records the transaction was made.

Bitcoin "wash" sites accept coins from thousands of owners and combine them together, so nobody can follow the history of the coins.

Terrorists, criminals, and offshore gambling sites are the main users of bitcoins as a currency, as demonstrated by the Silk Road website.

If it was easy to find the money, people wouldn't have been scammed for hundreds of millions of dollars that have disappeared into thin air.

Where is the money from Quadriga and all the other scams ?
 

·
Registered
Joined
·
3,368 Posts
The blockchain doesn't tell you who is making the transactions or where the money is coming from or going to. It only records the transaction was made.

Bitcoin "wash" sites accept coins from thousands of owners and combine them together, so nobody can follow the history of the coins.

Terrorists, criminals, and offshore gambling sites are the main users of bitcoins as a currency, as demonstrated by the Silk Road website.

If it was easy to find the money, people wouldn't have been scammed for hundreds of millions of dollars that have disappeared into thin air.

Where is the money from Quadriga and all the other scams ?
Actually bitcoin is a fully public blockchain, and it tells you exactly where the money is coming from and going to.
I even posted a link to a blockchain visualization site, it showed what account transferred to the other account.

The mixers are being raided by authorities, or since you have coins tracable to a criminal act, they become tainted, like I said that is a problem.
They explained this pretty clearly in the coindesk article I linked to.


Please show me a single bitcoin that disappeared "into thin air". That simply doesn't happen, everyone can see exactly which account holds which coins.

Quadriga and the other scams? They stole it, they took the money, and ran away.
When people thought they "bought bitcoin", they didn't, they bought a website that said they had a balance of bitcoin in their account. But in actuality they never had more than a fraction of the bitcoins they claim they did. Just like any other ponzi scheme, it has almost nothing to do with bitcooin.
 

·
Registered
Joined
·
12,538 Posts
Interesting investigation and the one prevalent factor in these crypto scams is the same one.........over and over and over.

There is precious little thought by "investors" that the crypto has no value unless it is accepted as payment by other people who trust it.

The "investors" are totally focused on greed and easy money. Get into the scheme early, watch it rise in value and then cash out very wealthy.

Greed is what drives all scams. Sometimes the greed is blatant, and sometimes it is all dressed up disguised as a tax rebate scam that donates medicine to the poor.
 

·
Registered
Joined
·
12,538 Posts
As to the blockchain, it has been shown over time to have weaknesses.

As the number of transactions recorded continued to expand, the time delay for approvals continued to lengthen.

It caused a "double spending" problem where people would spend in one store and then immediately spend the same bitcoins in another before the original transaction was recorded.

The big debate was on "forking" the blockmain into several parts, which would itself defeat the concept of a complete historical record on one blockchain channel.

In any event, given the millions of transactions per second that occur in the real world, the blockchain is incredibly slow and not useful to financial institutions for real time transactions.
 

·
Registered
Joined
·
3,368 Posts
As to the blockchain, it has been shown over time to have weaknesses.

As the number of transactions recorded continued to expand, the time delay for approvals continued to lengthen.

It caused a "double spending" problem where people would spend in one store and then immediately spend the same bitcoins in another before the original transaction was recorded.

The big debate was on "forking" the blockmain into several parts, which would itself defeat the concept of a complete historical record on one blockchain channel.

In any event, given the millions of transactions per second that occur in the real world, the blockchain is incredibly slow and not useful to financial institutions for real time transactions.
All the major cryptocurrencies have target blocktimes, and most transactions are confirmed in a few minutes.

You want your transaction faster, pay to prioritize it.
The only "double spend" problem is if you acknowledge the payment before it is confirmed.

Wait until you actually HAVE the funds, just like you wait for a check to clear.
These rules aren't any different than cash.


Forking is a non issue. I don't see how it is a problem.
If bitcoin was to fork into Bobs Bitcoin & Freds Bitcoin, you'd have coins on both chains, and people could decide which ones they'll accept. It isn't like you have to choose one or the other.
If someone makes a dumb fork, nobody will follow it.

These are really non issues, and they've already been discussed at length.

If you don't like it don't play.
 

·
Registered
Joined
·
4,531 Posts
When people thought they "bought bitcoin", they didn't, they bought a website that said they had a balance of bitcoin in their account. But in actuality they never had more than a fraction of the bitcoins they claim they did. Just like any other ponzi scheme, it has almost nothing to do with bitcooin.
Exactly it's the exchange not the underlying currency. Crytpo 101 is don't leave large quantities of digital currency on an exchange account

What do you think about ethereum and others? Personally I'm not interested in bitcoin but most here still think bitcoin is the only digital currency
 
121 - 140 of 151 Posts
Top