Re: [Emergency ANN] Bitcoinica site is taken offline for security investigation
Somehow I believe that blogpost is fake.
Especially after zhoutong himself said "if" they compensate and the word "shutdown" ...
No official confirmation is making this even more of a joke
If they had 80% of funds stored offline then surely they would compensate the stolen 20% you would think.
Especially after zhoutong himself said "if" they compensate and the word "shutdown" ...
No official confirmation is making this even more of a joke
If they had 80% of funds stored offline then surely they would compensate the stolen 20% you would think.
Funds does not equal profit.
We don't want to make Bitcoinica a fractional reserve. The sum of margin balance is the absolute minimum of funds we have to keep (so that we can honor every withdrawal request). Since the system is down at the moment, we don't have the knowledge of open positions. We're pretty sure that margin balance can be covered with our off-site reserves, but we are unable to determine value of unpaid unrealized profits and the unpaid swaps.
We will try our best to restore the system by Monday, and we will get back to you with a detailed investigation report and our resolution on impacted customers. Thank you for your patience!
Disclaimer: I'm representing Bitcoinica but I don't control the company any more ever since the corporate reorganization. I'm personally confident that other team members are going to give everyone a fair resolution.