Post
Topic
Board Service Announcements
Re: bitfloor needs your help!
by
repentance
on 05/09/2012, 00:04:55 UTC

Agreed - I'm not saying it's a good idea (frankly I don't have enough facts to have an opinion about that) but mentioning it as a possibility. To me, this seems like it's headed for bankruptcy, unless all of the creditors are so small that individually it's just not worth filing suit. My hunch is that there are going to be a couple of people with balances in the tens of thousands of dollars (or equivalent in BTC) who will go ahead and file (similar to Cartmell v. Bitcoinica) because they'd rather spend a few thousand more getting something filed and use that as leverage to settle and/or to use the civil discovery process to figure out what's going on . . . and from the company's point of view, it probably makes more sense to spend their cash on bankruptcy attorneys rather than fight lawsuits, only to end up in bankruptcy after losing the lawsuits. The bankruptcy action will create an automatic stay on other matters, so regular civil suits will be frozen while the bankruptcy is resolved.

Historically what has happened is that the larger creditors and/or other service operators have sought to buy out the venture in trouble - Cartmell et all offered to do this with Bitcoinica.  World Bitcoin Exchange and Bitcoinica did not accept the offers which would have paid out all customers and left the operators with no remaining liability but it doesn't mean that Roman won't consider and accept any such offers.