Bitcoin-Trader.biz

Bitcoin-Trader dot biz was a platform that clamied to make profits with arbitrage trading and mining. Maybe they were doing arbitrage and mining, maybe not. Basically you deposited fiat and bought “shares” in arbitrage or mining. Your account frequently received payments and if your account reached the withdraw threshold (contract end 120days / 365days)then you could withdraw. Basically profit on auto with no work! Just invest! Sounds great huh?

The company is registered in Panama, which in itself is not a bad thing. However plenty of scams are incorporated there so when you are checking out a company then when you read “INC PANAMA” one alarm should go off. As soon as they promise a set % of profit then an alarm should go off (it does say up to 3% but not 0-3%). Ok so 2 alarms have gone off, if you are still thinking of depositing then I am not sure what to say, but bitcoin-trader also knows exactly how you feel.

Affiliates
An Affiliate program is great for both the affiliates and the company involved. Affiliates are basically sales people that are paid on a performance basis and cost the company nothing in wages. They are only paid if they deliver sales. Each affiliate has an affiliate link like bitcoin-trader.biz/ref=bitcoinpotato. If you visit the page via my link and deposit then I get a small% of what you deposit or depending on the model a flat amount for every person that signs up. This model is not an automatic alarm. However if there is an Affiliate system in place be ready to be bombarded with banners, ads, blog posts and more. Bitcoin-Trader even went a step further and enlisted “local reps” which is a brilliant idea to gain trust. No longer is the website only on the internet they have reps worldwide. You can contact a local rep and they can ensure you that despite the promises of profit, company being incorporated in Panama or even countless alarms on bitcointalk https://bitcointalk.org/index.php?topic=393570.0 that the company is legit and you can deposit and watch the profits flow in. – See more at: https://web.archive.org/web/20150811052015/http://bitcoinpotato.com/bitcoin-trader-biz-closing/#sthash.yLPR45Al.dpuf

Bitcoin Conferences
These guys were at plenty of bitcoin conferences, or at least local reps were there. Being seen in person makes the site seem “legit”. They gave out FREE 20$ shares, I do not know how many but at the conference I was at I guess they gave out 2,000-5,000$ worth of shares. Sounds great! FREE MONEY! WOOOO! I got one of these free cards with the rub off code that allows you to clam your share. I was paid a few cents on time as payment for being in an “arbitrage pool”. Totally free! WOW! Now I should deposit a few thousand, it looks legit now, im going to be rich!!!!

Let us take a moment and think. They can afford to pay for a stand and give away maybe 5,000$ just like that. Doesn’t that sound a little fishy? What other company was giving out thousands of dollars just for fun? When I got that card and saw how this was going, I thought that they were really reaching, really trying for the last homerun, maybe a whale will get fooled into buying a large sum of shares.

I hope people stop falling for these schemes, really I have no proof that is was a scheme, it could have been a totally legit business. You can decide for yourself.

From the email:
Dear Clients
Regrettably I have to announce the failure and closure of Bitcoin Trader. While preparing for the final audit results, a task we were working on for weeks now, our bitcoin wallet has been hacked and emptied, just after exchanging our fiat holdings within the exchanges to bitcoin and transferring our entire holdings to our wallet, in order to proof our solvency. It is a known fact that I personally opposed any proof of solvency, but agreed to conduct it for the sake of a few dozen small and medium investors. The hacker contacted me shortly after he took advantage of our holdings and demanded a ransom in order to transfer the coins back. I have agreed to a 25% ransom of the entire sum, but haven’t heard back from him for several days now. My aim was to create something based on trust, just as bitcoin itself is based on distributed trust. Unfortunately I must admit today, I have failed. All left to do now is to declare bankruptcy with the Panamanian authorities and to hand over all relevant files and information for further investigation.
Sincerely, John Carley

Maybe it is true, but we have had our fair share of “hacked” business that suddenly have all funds disappear.
Bitcoin-Trader.biz is down but you can see what it looked like here.
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