Quote from: Serge on July 26, 2012, 07:39:08 PM

only thing i don't get why sell and or ruin business that started to generate supposedly over $40k a month in profits

I'm eagerly awaiting Tihan's answer:

Quote from: defxor on July 26, 2012, 02:31:12 PM

In the internal email dump from genjix you are quoted as having written the following:

Quote from: tseale

Speaking of that, Zhou I wanted your thoughts on the financial situation.
As you know, Bitcoinica went from cranking out 6-figure profit one month to
a flatline the next. I covered most of the deficit from the hack on the
assumption Bitcoinica profits would quickly fill in the rest. What's
happened instead is a consistent equity leak that has remained unresolved
for two months. We've gone from being short 40k to now being short 88k.

https://bitcointalk.org/index.php?topic=93109.msg1039996#msg1039996

Has the reason for that been accurately explained? That is, did Bitcoinica ever - provably - profit to the degree that Zhou claimed it did when you bought it?

One interesting line of thought is that the only one who's ever made a profit from operating Bitcoinica is Zhou, and if the service didn't make a profit from trading the only other explanation is that the "profit" came directly out of user deposits. To cover that up regular "hacks" were simply needed.