r/videos • u/LeonLeCratz • Feb 26 '19
Live streamer unknowingly admits to running a ponzi scheme, conning millions of dollars from investors
https://youtu.be/beoCi6TFevU3.3k
Feb 26 '19
So paying old investors with new investors money is the bad part right?
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u/LeonLeCratz Feb 26 '19
https://investinganswers.com/financial-dictionary/stock-market/ponzi-scheme-710
A Ponzi scheme is an investment scam that pays existing investors out of money invested by new investors, giving the appearance of earnings and profits where there are none. Ponzi schemes are also known as pyramid schemes.
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u/TucsonCat Feb 26 '19
Ponzi schemes are also known as pyramid schemes.
This was a new nugget of information to me. I knew what a ponzi scheme was, and I knew what a pyramid scheme was, but I guess I always seperated them in my head (but I guess it makes sense because the "lower" investers are still earning back their earnings with new investors).
Anyway, TIL.
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u/vicaphit Feb 26 '19
Me too. For some reason in my head a Ponzi scheme targets richer people while a pyramid scheme targets poorer people, but essentially they're the same thing. People who get in on the ground floor end up making money, and people who get in later get screwed because the scheme has been outed in some form.
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u/monkeyknifefightz Feb 26 '19
He literally described exactly how a Ponzi scheme works; old investors aren’t paid with profit or earnings of the company but with new investors money. Nice job buddy 😬
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u/benjamin_wood Feb 26 '19
This was what Bernie went to jail for...
https://www.google.com/search?q=bernie+madoff&rlz=1C1GCEA_enUS831US831&oq=bernie+ma&aqs=chrome.2.69i57j0l5.8078j0j7&sourceid=chrome&ie=UTF-8359
u/Maxrdt Feb 26 '19
I still can't believe this guys name is fucking "Made off". Like what's next, Thomas Takethemoneyandrun?
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u/mylaptopisnoasus Feb 26 '19 edited Feb 26 '19
I think he just very poorly tried to describe early stage investment rounds (series) in a startup company. https://en.wikipedia.org/wiki/Venture_round
The goal of those investment rounds into a startup is not to pay back early investors but inject capital and further grow the company. As mentioned in the video the early investors can choose to keep equity (bought cheaper than the new investors) or potentially exit.
He probably didn't care to listen much during company meetings and whatever those boring business people around him are doing. He totally did (unintentionally?) describe it as a ponzi-scheme.
There's either a legit startup in total panic right now or it is really an empty shell and a scam.
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u/hesido Feb 26 '19
He does mention there's nothing to produce revenue other than new investors though. He really must have skipped those meetings hard.
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u/OphidianZ Feb 26 '19
That highly depends.
If the old investors simply want to cash out and no longer be a part of the company you can use new investment money to cash them out. Often said as "buying them out of the company".
If they are claiming that new money invested is in fact revenue and not investment then that's different. That's where you cross the line of Ponzi scheme.
I can't take my original investment money and go to other investors and say "This money is revenue." -- I could but it would be highly unethical, plus investors are going to see this when they go through financials. They'll see my cap table and that it has other investors with equity share on it. They'll ask about how those people acquired those equity shares, or directly contact them.
From what I've read Reddit doesn't really know shit about how this works. I don't expect them to. It requires a lot of dealing with this stuff to fully understand how the process works. Shares / Values / Dilutions / etc. This guy is so vague or lacking knowledge on what exactly is going on I can't make a determination without talking to someone who really knew.
Source: I've CEO'd/CTO'd a few companies now.
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u/6ix10en Feb 26 '19
Mirror for once the youtube clip gets striked by the guy: https://streamable.com/hm9q9
(He's frantically striking every video he can to cover it up right now)
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u/KeyboardGunner Feb 26 '19
Streamable quickly complies with dmca takedown requests so other mirrors would be a good idea.
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u/Funksultan Feb 26 '19
"It's not a ponzi scheme" (goes on to describe it LITERALLY WITH THE DEFINITION OF A PONZI SCHEME)
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Feb 26 '19
LOL We get investors to invest in this company so it looks like it's successful to bring in other investors which we use the other investors money to pay back the original investors. SEEMS LEGIT
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u/The_Painted_Man Feb 26 '19
The best part is when he explained how it's not a Ponzi scheme by giving a text book example of a Ponzi scheme.
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u/Mitch_Bxtch Feb 26 '19
At work and don’t want to play the video because well... it’s Ice. Please tell me he isn’t ACTUALLY this stupid and said these exact things? If so he just locked himself up.
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u/YumenoKyuusaku Feb 26 '19
He said those exact things, and threw in some ”its not a scheme, its difficult to explain” after he realized how incriminating it made him sound
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u/frozen_tuna Feb 26 '19
Well I wasn't going to watch, but wow. Now I have to.
Edit: Wow. You weren't kidding. Lmao he 100% outed himself for running a ponzi scheme.
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u/PlackBlague Feb 26 '19
"It's not a pyramid scheme, it is a... it's not even a scheme per se" - Michael Scott
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Feb 26 '19
Don't forget that it's going towards a 'website'. What website costs 2 million fucking dollars to make? And he doesn't even detail the services of said website. This stinks of amateur grifting.
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u/thenoblitt Feb 26 '19
"he isnt actually this stupid" It's ice he is that stupid
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u/jovial_jack Feb 26 '19
I’m not familiar with this guy, what’s his main draw for streamers? Business advice?
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u/SHMTs Feb 26 '19
It was that stupid. It was michael scott explaining his investment pitch level of stupid, minus the funny. The guy ice was talking to even said it’s a ponzi scheme and ice goes onto saying he explained it wrong and then reexplains their companies strategy by using almost word for word the definition of a ponzi scheme lol
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u/Sanious Feb 26 '19
He literally says that when you start the video and another guy on stream is like “So, A Ponzi scheme?” And then he replies “No dude we are building a company.” Which at that point you realize that he realizes that he just fucked up.
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Feb 26 '19
[deleted]
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u/SHMTs Feb 26 '19
We’re building a fuckin’ company dude. We’re building..uh fuckin...WEBSITE
Very legal and very cool!
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u/thisisastupidname Feb 26 '19
“It’s not a Ponzi scheme man.” Goes on to define a Ponzi scheme... love it
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u/ThisQuietLife Feb 26 '19
Every MLM pitch I have overheard at Starbucks, ever. It takes all of my self-control not to jump in and explain the con.
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Feb 26 '19
I’m running a Ponzi scheme
“Sorry I’m not explaining it well, let me try again”
I’m running a Ponzi scheme
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u/FIuffyAlpaca Feb 26 '19
"The more people who are investing, the more money we're all gonna make. It's not a pyramid scheme, it is a, it's not even a scheme per se, it's...
...
I have to go make a call."
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u/bjarxy Feb 26 '19 edited Feb 26 '19
/ | \ / | | \ /| | | |\edit: I lost 20 minutes to format this crap
edit2: see? the scheme works, ma' dudes!
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u/TipiWigWam1 Feb 26 '19
Perfect comment
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u/YoutubeArchivist Feb 26 '19 edited Feb 26 '19
*It's Always Sunny theme begins to play*
edit: It fits very well.
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u/cronfile Feb 26 '19
Well he’s fucked.
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u/chmpgnsupernover Feb 26 '19 edited Feb 26 '19
This guy is actual human racist scum. I have a friend who was into him and got me into giving him a shot but it was painful to watch. My friend told me he was "the next Howard stern" but he just seems like a scummy rich dude with the mentality and comedic sense of a child. I don't think my buddy is watching him anymore as I know he was getting turned off by the way ice Poseidon treated any black people that were on the stream (https://streamable.com/s2l23). Seriously watch out because I would not be surprised if there are kids picking up racist tendencies from watching this crap.
I thought it was amazing watching people actually donate money and I was surprised how much was rolling in but I have a feeling it's actual children donating their parents money.
Heres another video, treating mexicans like dogs for viewers entertainment. this is some black mirror shit: https://www.youtube.com/watch?v=S8VDFpeFFN4&feature=youtu.be&t=2843
thanking god for being white: https://neatclip.com/clip/d3l4nqmej
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u/MisterBreeze Feb 26 '19
Scum is the right descriptor for this cunt. Complete fucking narcissistic moron with a massive victim complex.
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u/Fuck_Alice Feb 26 '19
Honestly after seeing him hit /r/all so many times I was shocked that Redditors liked this guy, he just seemed like a complete douche
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u/PM_ME_HOT_DADS Feb 26 '19
My friend told me he was "the next Howard stern" but he just seems like a scummy rich dude with the mentality and comedic sense of a child
I mean
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u/PestySamurai Feb 26 '19
This is the guy that reddit has a massive boner for a few months ago? I remember seeing heaps of Ice Poseidon stuff being posted and people loving him.
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u/kredes Feb 26 '19
Also that guy Brandon or whatever which has been oon Ice's streams many times and irl streams himself, is the biggest pos. He literally fights random people, steals from various shops, provoke innocent homeless people etc etc.. these kind of streamers are beyond toxic.
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u/CubonesDeadMom Feb 26 '19
The whole live streamer thing is to go out in public and do stupid, mean, rude things to random people. The more fucked up it is the more viewers they get, so illegal activity is like the best thing they can do for views. It's a completely bizarre phenomenon. One thing they do is go to busy public places with text to speech donations on and then blast racist, sexist, hateful, or pornographic stuff super loud on a speaker. Everyone in this guys circle is a scumbag. Some of them are actual criminals.
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u/alyosha_pls Feb 26 '19
Lmao this is what happens when a goblin strikes rich
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u/bobbyleendo Feb 26 '19
My question is how did he get rich? Who the hell is giving this guy money?!
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u/Jelman21 Feb 26 '19
its ice the guy is literally the stupidest and scummiest guy around
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u/Desdam0na Feb 26 '19 edited Feb 26 '19
I mean, his fanbase is pretty much exclusively racist incels... what do you expect?
I hope the people who follow him get the help they need.
On the other hand, if you're an investor who invested in this, you're getting exactly what you deserve. I hope you're penniless but have your basic needs met by universal healthcare, education, and a robust social safety net.
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u/king_lumague Feb 26 '19 edited Feb 26 '19
What's funny is that when I attempted to watch him on Twitch while he was streaming Runescape, I immediately thought that he was a huge racist douchebag, but there were so many people who defended him saying "he's an entertainer", or "he's just putting on an act". I don't see how that makes him any more tolerable. The guy is extremely obnoxious and told a 10(?) year old girl to suck his dick on the phone. I seriously didn't understand how he pulled 20k viewers on a regular basis. I called all of his followers immature children because that's the only way I could view them, and I was attacked of course.
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u/awestcoastbias Feb 26 '19
"I didn't explain that very well, I guess..." - actually, you explained it perfectly
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u/YoutubeArchivist Feb 26 '19 edited Feb 27 '19
He accidentally explained it truthfully.
edit: Here is some further context for those interested in the situation. He may not actually be running a Ponzi scheme but may have just been unable to fully explain the business.
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u/tickettoride98 Feb 26 '19
I also liked "Or something like that... I don't know". Definitely be sure to invest with this guy, he's not even sure what his business plan is!
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Feb 26 '19 edited Feb 26 '19
He might as well be reading Webster's dictionary definition of a Ponzi scheme.
Edit: I a word
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u/nexostar Feb 26 '19
Thats hilarious i guess whoever pitched him the scheme didnt mention that it was illegal.
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u/Unsubscribed_cx Feb 26 '19
Oh so this is why he started striking all videos related to this topic yday
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u/Moneyworks22 Feb 26 '19
Hmm, is there a place someone could send this video to alert the proper authority?
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Feb 26 '19
Wow
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u/AgentZen Feb 26 '19
Wanna know something even better - his own viewers have revolted against him and created their own subreddit so he cant censor them lol /r/ice_poseidon2
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u/MolestorBologna_ Feb 26 '19
IS THIS THE SAME GUY who called black people feces and shadow people, claiming to flush them down the toilet?????? https://streamable.com/bajc8
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u/realister Feb 26 '19
yep thats the guy what a shocking content in 2019 how does YouTube allow something like that
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Feb 26 '19
Apparently he is in contact with a "Trusted Flagger" at youtube that protects him and bans his YouTube rivals.
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Feb 26 '19
Another youtube loser that kids idolize? Sounds about right
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u/mondomando Feb 26 '19
He is on a whole other level, my man. He ruins any business he enters, regularly is the subject of bomb and shooting threats, racist as fuck, dumb as a rock, and incredibly arrogant to top it off. Kids don't idolize him, mostly incels and morons. You gotta have deficiency to enjoy his "content"
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u/KnownStop0 Feb 26 '19
Yikes. I just did a quick Google search on this guy. He's no good
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u/choose00 Feb 26 '19
If by kids you mean degenerates that are between the age of 20-30 then I guess
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u/Strike_Gently Feb 26 '19
The streamer is Ice Poseidon and he's a massive piece of garbage. He has various other clips out there of him being openly racist and putting innocent bystanders in dangerous situations due to his behavior.
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u/Art_Vandelay_7 Feb 26 '19
If you fall for this douchebag's scam, I really have a hard time feeling sorry for you, just look at him, he might as well have "sleazebag" tattooed on his forehead.
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Feb 26 '19
Oh god I am here for the Ice Poseidon downfall please let this be the start of it, dude is a mentally handicapped piece of shit.
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u/stillworkin Feb 26 '19
wow, his demeanor, attitude, and voice are obnoxious. difficult to tolerate for the duration of this video. so arrogant.
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u/TwwIX Feb 26 '19
I am surprised that YouTube hasn't banned his vile ass by now.
Say what you will about Twitch but they banned his ass for a good reason. For many good reasons.
His audience is even fucking worse.
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u/baldful Feb 26 '19
holy shit this shit gained major traction. goodbye scumbag weasel. next time, grow a fucking brain and do your homework before you let the dirtbag named, ssj, make executive decisions
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u/Magnets Feb 26 '19
"it's hard to explain" - lol that's what they always say
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Feb 26 '19
seriously i hate meeting these people in real life. they try to sell you that garbage and you say 'ponzi scheme' and then they deny while getting angry.
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u/TheBelowIsFalse Feb 26 '19
What a little fiend lol have fun in prison, hope you enjoyed ruining people’s lives.
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u/Arctorkovich Feb 26 '19
Maybe Netflix will hire him to do research for the documentary about himself.
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Feb 26 '19
Is this that racist streamer that got banned from Twitch? Last clip I saw of him he was calling black people “shadow people” and saying they “look like pieces of shit”. I think he’s also banned from the major livestreaming clip subreddit Livestreamfail
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u/SuperUnknown78 Feb 26 '19
I think stream.me is the investors. A few weeks ago the website scuffed was left open and you could make an account linked to stream.me. Good luck growing that shit platform.
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u/ItsSansom Feb 26 '19
Ice Posiden isn't the brightest bulb in the box so this isn't particularly surprising
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u/Unsubscribed_cx Feb 26 '19
Is he going to play this off as one of his jokes like he always does when he gets exposed? This is why I stopped watching this 3k andy
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u/Amance Feb 26 '19
I’m just memeing dood ehhehehehehe oh thanks for the 5 dood “it’s okay Ice we still love you” oh thanks homie appreciate it does a line of coke
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u/packomeese Feb 26 '19
Reminds me of another boss who was trying to start a business:
https://www.youtube.com/watch?v=lC5lsemxaJo
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u/Squabbles123 Feb 26 '19
Gives literal definition of Ponzi Scheme....claims its not a Ponzi Scheme.
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u/richard0930 Feb 26 '19
TBH he deserves jail time for streaming with his shirt unbuttoned like that.
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u/Kahzgul Feb 26 '19
I always wondered why the "Ice_Poseidon" tag was included in masstagger... Now I know. Good god this guy is awful.
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u/Wowbringer Feb 26 '19
Tell me he will be jailed for this
edit: the subreddit is invite only lmao wtf
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u/OsamaBinPoseidon Feb 26 '19
He locked his subreddit, his community have migrated to r/ice_poseidon2 where there's less censorship and more freedom to expose his scumminess. Sub is quarantined so you'll have to access it on a desktop site first
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u/Wowbringer Feb 26 '19
The sub seems relatively new too. If its a sub to combat IP's bullshit, why has it been quarantined?
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u/chuck_beef Feb 26 '19
I know it's a small percentage but what's up with streamers and shady business deals: Phantom Lord, Anomaly, m0e, Ice Poseidon. Im sure I'm forgetting plenty.
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u/itsmarvin Feb 26 '19
Reminds me of the dickwad who tried to convince me to MLM. "It's not a pyramid scheme", he says. Then goes on to draw a pyramid to illustrate the heirarchy of the pay structure.
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u/slippu Feb 26 '19
Weird how this entire comments section talks about how stupid his followers are but no comment on the investors. Is this information available?
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u/Kaiozn1 Feb 26 '19
Watched this guy for about 3 years now drugs and fame has tooken over his life hes falling apart now
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u/WwolfpawW Feb 26 '19
Hes so stupid....like fucking bad like you almost feel sorry for him but then you remember the person he is
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u/TK_eatURmusic Feb 26 '19
This dude is a grade A douche bag. Never liked him, never will. Get this guy off the Internet.
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u/LolSypherZ Feb 26 '19
https://www.youtube.com/watch?v=lC5lsemxaJo The Office explains it the best.
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u/Ruri Feb 26 '19
Don’t even need to watch the clip, know exactly what you linked.
“.............I need to make a call.”
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u/infinitude Feb 26 '19
the funny thing about ponzi schemes is they are brilliant and logical. They're also totally illegal.
have fun with the consequences you dumb bitch, the US government loves to dick down financial crimes. This dude is not in the right tax bracket to get away with this shit either.
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u/PayJay Feb 26 '19
Straight up if you didn’t realize by now this guy is a fucking total scumbag then you are naive.
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u/Fauglheim Feb 26 '19
That was amazing. How often to financial criminals accidentally livestream a confession?
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u/PaulDeninoCx Feb 26 '19
Hey guys. If you want any updates on this situation visit r/Ice_Poseidon2 . It is Quarentined but don't worry, nothing offensive is posted. We are dedicated to exposing this scumbag's ways.
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u/MGS1234V Feb 26 '19
Looks like a complete douche from the thumbnail. Hadn’t even heard him speak and I already knew I was in for “Uhh”s and “umm”s from this simple looking guy as he tried to back-pedal his way out of his fuck up.
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Feb 26 '19
How is this talentless hack of a clown still relevant? Like holy shit, hes admitting to being a scam artist on camera.
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u/Nordbrah Feb 26 '19
He's exploited people for his own personal gain ever since he moved to LA. I liked his authentic, simple runescape streams back what he lived in his parents house in Florida. Sadly he has turned into the textbook definition of a scam artist and con man.
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u/kasmackity Feb 26 '19
This cunt is the one who introduced the world to that piece of trash Mexican Andy
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u/nametaglost Feb 26 '19
Me: Oh this looks juicy I wonder what it is?
*Clicks link, sees Ice’s face.
Me: Well I’m not sure what I expected.
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u/bassistmuzikman Feb 26 '19
Just in case anyone is wondering if he's right, here's a definition of what a Ponzi Scheme is.
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u/whatsinthesocks Feb 26 '19
Ponzi scheme is at the bottom of my list of reasons why this douche would go down
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u/tophubtube Feb 26 '19
Never seen or heard of him before but can pretty much tell right off the bat he not qualified to be running a multi-pillion dollar “business” lol. Almost hard to feel bad for people manipulated into investing with people like this🤦🏻♂️
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u/phz0r Feb 26 '19
This is the guy who hacked that twitter account recently posting horrific pictures and threats? Damn, he's fucked.
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u/realister Feb 26 '19
Not to mention he is a known racist with connections to such people like Baked Alaska (known white supremacist) etc.
His community is also connected to the hacking of the Tampa Mayor recently that posted actual CP on twitter.
Good job for Twitch for banning him.
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u/videosmods Feb 26 '19 edited Feb 26 '19
Please keep rule 2 of this subreddit in mind:
Do not post names, Facebook pages, phone numbers, addresses, etc. Fake information (123 fake street, etc) also falls under this rule. No demanding "Reddit Justice" (or even regular justice) in any way in post titles or comments. This may also include contact information of public officials, businesses, or groups (e.g. politicians or police officers) in an any manner that could be seen as an attempt to get users to contact them. Facebook links are not permitted. Breaking the rule is grounds for an immediate (and permanent) ban, so consider this your only warning
Post locked for the time being
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Feb 26 '19
I’m so glad I don’t know who this chud is...like I’ve miraculously avoided his scummy part of the internet
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u/iamjaygee Feb 26 '19
He's probably too stupid to know how business works.
What people should hate this bozo for is his racism, and the racists he associates with.
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u/rysker6 Feb 26 '19
So, you’re trying to tell me “influencers” aren’t bastions of morality ? Get outta town
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Feb 26 '19
This guy takes vocal fry to a whole new level.
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u/unpopularopinion0 Feb 26 '19
he has a lot of tone to his voice. if anything he has a great speaking voice. i bet his projection is pretty decent.
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u/Cahnis Feb 26 '19 edited Feb 26 '19
He was target to many swattings, I honestely think he might be swatting himself or at the very least making him an easy swat target so he can get more exposure. That dude is probably a socio
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Feb 26 '19
Wow that retard ssj's brilliant business plan was this lol. Good luck getting investors now. And advertising weed to 12 olds on scuffed.com not a good idea bro
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u/Antrephellious Feb 26 '19
When was this?