I'm still not convinced this is a scam. Just poor customer service and PR, because it's effectively a 1-man show with lots of issues to deal with (and likely another full-time job).

I think Kiur got caught out when the BTC got stolen. Reddcoin miners were also flooding his exchange with dust transactions, causing transactions to fail.
He's evidently now working through all the failed alt-coin transactions, and I suspect in the meantime hopes transaction fees will cover some of the BTC lost.

Question is, how much BTC got stolen, and how much was saved in offline wallets?

Kiur - we're a forgiving bunch, please just communicate your situation with us!

Here's an suggestion:
Re-credit all 'lost' BTC withdrawals back to their respective accounts. This would allow these people to trade and generate fees.
Until you have enough BTC to cover all withdrawals, any withdrawal from the exchange would be subject to a percentage haircut. Up to you how to calculate, based on timing and % lost.
Eventually you will become fully solvent once again, and we'll all be happy. Your exchange is one of the best, without these lost coin and bad PR issues of course.