Can someone tell me what's going on with Bit Instant?
The consensus or at least the signs point to a classic age old business problem.... lack of cash flow. Ripe for venture capital help as they are poised to be THE go to guys... are they with any firm in particular?
Yes, as I have said previously, despite their protestations to the contrary, this is all about lack of money/bitcoins to send, and not technical problems. They are trying to buy time, which would actually be OK if they were honest about it. Problem is that they are blaming technical glitches. In a situation like this, honesty is the best policy.
They are most likely waiting on payments from one of their providers, such as CashPayment.com. My guess is that CashPayment.com is a little spooked about the legalities and have held up their payments, so they simply don't have any money or bitcoins to send. It's either that, or they lost all of their bitcoins to a hacker. If/When they do get paid or find someone to finance replacement coins, my guess is that all orders will be paid and the "technical glitches" they are using as an excuse will all of a sudden be cleared up. That could be a while though, if ever, since their payment provider could easily reverse all transactions if they are uncomfortable from a legal perspective.
Now, the Bitinstant guys will pop in here with a snotty response and tell me I'm not only wrong but stupid for posting this, or that I haven't read their BS posts about technical glitches, as they seem to do with anyone that questions them. But look at the facts. Everything was working just fine. A week is more than enough time to recover technically from any hacker attack. If the site code were changed, you take your code backup, and throw it back up on the server. Takes a few minutes, not a week. What they don't get is that everyone could understand a payment holdup or even a theft of their bitcoins, but blaming it on technical issues says "We are lying to you" to some and "We are technically inept" to the rest. Either way, that's not a good image. The truth would be nice at this point.