Re: [ANN] Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation
@Zhou How do you in all seriousness propose to return the remaining 40.000?
I had a conversation via email with Zhou earlier this week and this is what he told me:
Quote
I'm willing to personally commit the liability after the liquidation is done for the shortfall of funds, paid back from the profits in my future businesses.
It is nice of Zhou to suggest this but I don't think it is very practical, nor would it be ethical for creditors to accept Zhou's money if he really is innocent. Is anyone going after Chen?
I've lost track a bit of exactly what's been lost and recovered. From memory (please correct me):
Linode theft; X BTC (losses covered by investors I believe)
Rackspace theft: 20% of BTC; 0% of USD
MtGox API theft: 40,000 BTC; 200,000 USD
Linode theft; X BTC (losses covered by investors I believe)
Rackspace theft: 20% of BTC; 0% of USD
MtGox API theft: 40,000 BTC; 200,000 USD
Here you go:
- 2012/03/02 - LINODE hack. 43,554 BTC stolen. LP (Tihans fund) covers loss.
- 2012/05/11 - RACKSPACE hack. 18,547 BTC Stolen, Full data loss. LP covers loss.
- 2012/07/13 - MtGox account compromise: 40,000 BTC and 40,000 USD stolen.
- 2012/08/14 - MtGox fund recovery from Chen: 20,000 BTC and 100,000 USD recovered.
liquidators typically charge upwards of $200 per hour.
Ouch! Now I understand the meaning of the word 'liquidator'. At that rate there will be little left (Consider the time needed to reconstruct the DB and vet claims). I certainly hope Tihan can find a receiver and liquidator that does not eat baby panda heart for breakfast. Personally I'm still hoping to see at least 70% back. (That would still mean a ~12,000 USD haircut in my case..)
All I know is that I turned one guy onto Bitcoin who just inherited a chuck of money. I never mentioned Bitcoinica to him--just Bitcoin. The next thing I learn is that supposedly he (Jerry) had about $10,000 USD tied up in Bitcoinica. Although he never mentioned the exact amount, via conversations that's my best assessment. I'm pretty sure he bought in at $5/BTC, thus he could have made 200% profit recently. Instead, he would have been better off having it sitting in a conventional bank collecting 1% interest.
This past Sunday, I stopped over at the Sandwich Flea Market--two blocks from my home--to rap with a couple vendor friends of mine--Mike and Kenny. After talking shop awhile, I got ready to leave when Mike asked me about that internet money I'm involved in. I have never mentioned Bitcoin to either one of those guys, so I was taken aback when he bought it up. I asked him if he meant Bitcoin, whereupon he said yes, recalling that that's what he thought it was. Come to find out that Mike learned about Jerry's lost via a friend, via a friend, via a friend (think small town gossip, if you will). Fortunately, I had the opportunity to set the matter straight with him and Kenny, but did learn that a lot of people think elsewise about me here in Sandwich.
So, here I am on Bitcointalk trying my damnest to uncover the truth and, admittedly, fucking up along the way, and what do I get as a reward?
~Bruno~