It would be a bad idea to release those conversations even with ZT's permission if it would negatively impact recuperating the stolen funds.

A police report from China really isn't what you think it would be. If like me, you live in a Western country and have a decent police force you might be mistaken in thinking that this would be a good way to go about things.

In China, you can 'influence' how a police officer sees things with something as simple as a carton of cigarettes. If you don't want to deal with a strong headed police officer then you can see the political head of that region and explain to them why the matter should go away. Also, when you're not present locally, it would be very hard to make a report, especially for something so complex.

It's one thing for the local police in China to deal with a local theft of physical goods but it's quite another for them to deal with a crypto-currency with multiple international jurisdictions.

My personal opinion is that going to the police before funds are recovered for those with a financial interest in this case would be detrimental. It would also hinder ZT from recovering the funds from his business associate.

Also, if anyone were to file a claim, shouldn't it be Bitcoinica? Am I right in saying that this attack happened after the sale?