Quote from: MentalCollatz on January 16, 2016, 03:20:38 AM

Step 1: "Phantom BTC" credits
Create a new, fake currency called "Phantom BTC", which cannot be deposited nor withdrawn. Credit all users with Phantom BTC equivalent to their current outstanding BTC holdings and set BTC holdings to 0. Future BTC deposits will be credited as BTC.

Step 2: BTC to Phantom BTC exchange
Create a new trading pair between BTC and Phantom BTC. Collect a Phantom BTC commission on every trade. This means that on every trade the amount of Phantom BTC in existence will decrease.

Step 3: Phantom BTC buyback
Use profits from other trading pairs to buy back Phantom BTC, further accelerating the rate at which it disappears. If the stolen funds are recovered, all of the Phantom BTC can immediately be bought back. Eventually there will be no more Phantom BTC and Cryptsy can close that trading pair.

Having a BTC to Phantom BTC exchange will allow pessimistic bagholders to withdraw their BTC at a loss, while allowing opportunistic traders to essentially buy Cryptsy's debt, with the possibility of significant returns when Cryptsy finally gets everything back on track. Patient/optimistic bagholders can simply wait until a favorable exchange rate or until the buyback.

Sounds like you work in investment banking and yes it would work. Its a fractional debt system enabling profitable business to continue, so long as the debt financing costs less then the profit the conclusion is repayment and continuation of the previous business.

Its unfortunate we cant manage to do that overall, there is no super whale to step in and restore confidence in trading for this site apparently. Alot of assets a business has is the intangible kudos and memory of regular trade from so many people. In the real world its very often a failing or even corrupt system is restored via a transformative takeover, it is risky but the costs of buying such a ruined asset is low and so long as trading does resume and confidence builds it should repay.
The debt system like said would be an appreciative asset - unlike a pyramid system this is the correct use of mutual benefit and compound gain for investors and positive for those much smaller traders who utilised the site to bridge the gap across multiple small alt coin chains. A famous example, Warren Buffet 'rescuing' a failing bank. He profited, society gained and backers of the deal also did well
http://kb.trisugar.com/node/12550

I think its feasible but all these bitcoin fatcats mostly have the idea to just sit there and wait for the price to rise; no economy works like that. Either collectively useful work is done and bitcoin and other coins describe and enable those transactions or the whole deal is waste of time like a lottery and only the thieves and con artists gain. Security, debt recovery, junk bonds like this is all normal; failure is normal and work to recover is normal. Big government bailouts are abnormal, any normal capitalist society must deal with its own trash through loss to profit