This is terrible. Aren't you still trying to run an exchange right now?
Jav seemed to have no problem keeping Instawallet safe, it was a pillar for getting bitcoins adopted, it featured in Gavin's talk to the CIA in mid-2011 ... yet when you took it over this happens? Your credibility is starting to look tatty davout.
A clever observer could have seen that there were many many BTC in lost or forgotten Instawallet accounts and the purchaser/adopter of Instawallet would inherit them. Trouble is, how does one go about triggering the pay-out? One idea would be to induce an event which would justify the needed phase shift. Not saying that that is what happened, but I see nothing which would rule it out...and no particular interest on the part of the Bitcoin-Central/Paymium/whatever bunch to produce such information.
I used to have much respect for you but this episode is looking very shabby indeed.
So the few bitcoins of my friends and family are gone and you have no intention to make good on them is what you are saying right?
An expression of ours which seems to be fitting here would seem to be "That's about the size of it."