Even tho only a small majority of the coins are ever in use at any time
I guess what this means is that he realizes that he could have continued operating under a fractional banking model but chose not to. Which is good.
This also means most of the coins should have been in cold storage, but they weren't. Which is bad.
So far BitFloor has been great. I would want the service to continue operation.
Could you secure some investor funds to pay back losses to customers now, and payback the investor after your business picks back up?