Quote from: DeathAndTaxes on September 04, 2012, 10:44:39 PM

Not sure where people get the idea that bitfloor "can't" repay USD account holders.

http://en.wikipedia.org/wiki/Fraudulent_conveyance

Quote

A transfer will be fraudulent if made with actual intent to hinder, delay or defraud any creditor. Thus, if a transfer is made with the specific intent to avoid satisfying a specific liability, then actual intent is present. However, when a debtor prefers to pay one creditor instead of another that is not a fraudulent transfer.[1]

Given that both Bitcoin and USD creditors "could" sue bitfloor and considering the relatively likelihood of each lawsuit and the relative likelihood of being successful the prudent thing for bitfloor to do would be to repay those creditors who essentially have an open and shut case when it comes to a lawsuit.

^^This^^

Well put, thank you D&T for clearly making the point I've been struggling to establish.

In case it's not clear to the dimwit collectivists, the "creditors who essentially have an open and shut case when it comes to a lawsuit" are we who have USD held by BitFloor, not the magical internetnerd token owners.