I said it before on BFL forums, but I got deleted. I'll say it again here, where you cannot pretend the issue doesn't exist:

BFL: You cannot win this. Do the right thing - refund your customers if they want out. And if you have run out of money, I believe you are legally obligated to file for bankruptcy. If you continue what you are doing, you are committing a large/scale fraud and you will end up in jail.