Quote from: tseale on May 24, 2012, 01:26:53 PM

Hi all. I'm making my first post here to offer my heartfelt apology to those affected by the security breach at Bitcoinica.

The investment fund I work with first put money into Bitcoinica because I had identified it as a promising start-up in this exciting space. It is my job to find potential investments and conduct related due diligence. In doing so, I learned a lot about bitcoin trading and Bitcoinica.

Like many early stage companies, Bitcoinica experienced growing pains as its success outgrew the capacity of its initial founder to handle alone. It was I who sought out expanded management to help take Bitcoinica forward.

I chose the Bitcoin Consultancy team due to their early involvement with bitcoin, their experience operating an exchange, and their reputations for expertise in online security.

Bitcoin Consultancy was first retained to perform a comprehensive security audit on March 27 and they became owners and operators of Bitcoinica LP on April 24. As General Partner, they have exclusive legal authority to manage the company.

Because their time with the company is relatively short, the present situation is especially challenging. Zhou Tong has continued to assist in an unofficial capacity. I've offered what insights I can based on my knowledge of the business. In spite of the challenges, I know the Bitcoin Consultancy team would like to bring about the best possible outcome.

Per standard practice, Bitcoin Consultancy entered into a non-disclosure agreement which extends to Bitcoinica's proprietary systems and processes. They are free to discuss their role and history with the company.

For those who wish to blame someone, blame me. Perhaps if I'd pushed for expanded management sooner or in a different way, the incident might have been avoided.

For avoidance of confusion, I wish to reiterate Bitcoinica Consultancy's prior statement: Mr. Heaslip is an accounting professional who assisted with company formation. He has his own business interests in New Zealand which are otherwise unrelated. I have facilitated investments in dozens of other companies, including some in the bitcoin space. Those companies are also unrelated.

Im unable to follow most public postings here, but you can reach me through this forum by private message. Questions about processing of funds should be directed to Bitcoin Consultancy as they alone control that process.

I've advised Bitcoin Consultancy to focus their efforts on processing claims rather than public debate. Please extend them your continued patience.

So I take this as, you or you and others you represent are Venture Capitalists that put Bitcoin Consultancy in charge of your investment. e.g. Cisco but the team you put in charge flubbed up somewhere.

Which, if I read right, Bitcoin Consultancy is the Executive Management (CEO's, CFO's, CSO Sad

etc...) and you and/or you and others are the investment group with any rights that you maintained in the agreement.

NDA agreements for proprietary material are normal and used often. There are, from what I am aware of, some limits on them when a crime is committed.

So I have only one two part question: Has this been reported to the respective locality authorities as a crime being committed in theft of peoples money (or belongings)? and if so, where and what is the report number?

Zhou, another noted here, please maintain discretion in you talking (typing) about business matters. Businesses value discretion over many other attributes. No one will include you in meetings or decision making positions if they believe you will go around spouting off. That doesn't mean you can't view your opinions but cut all ties and don't use any inside knowledge in those opinions. In your future, you can be a complete asshole but if you maintain DISCRETION people will tend to trust you.

Bitcoin Consultancy, if someone breaks with expected discretion, it doesn't pay to publicly point it out and/or try to shame or embarrass them. It is better to let it go quietly into the night otherwise you will cause a division and create a possible enemy for a long time.

Much better is: Zhou has been a innovator, has shown an entrepreneurial spirit that has expanded the knowledge, and has given more outlets for the use of bitcoins. It is unfortunate that we have grown apart and have had some disagreements of direction of management decisions. We respect all that he has done with the community and wish him well in his future projects.

Remember: Someone will be writing things about you so it might behoove you to use the BCB method of criticism.