Ironic now? User Parapain reported Bitcoinica to the police in February.

[mc_lovin]

Stumbed across this thread just now:

https://bitcointalk.org/index.php?topic=64176.0

Remember all the flak he received over reporting them?  Now YOU GUYS are reporting Bitcoinica to the police!!!

[finkleshnorts]

Parapian's on a streak! First bitcoinica, now TizzyTazzy, what scam will he predict next? I wonder what he thinks about Micon's Ponzi list.

[myrkul]

Parapian's on a streak! First bitcoinica, now TizzyTazzy, what scam will he predict next? I wonder what he thinks about Micon's Ponzi list.

I may have to retract what I said earlier about him...

[Kluge]

How does Bitcoinica's alleged lack of legal registration affect their poor security?

Paraipan filed a report against Bitcoinica for possibly violating technical laws. Others recently filed a report against Bitcoinica for failing to compensate owners what they're due, which was not the result of Bitcoinica not releasing where or how they're registered with the government, though that will affect how much users are rewarded if legal action is successful. If Bitcoinica failed to register, the owner/ops are at pretty extreme risk, and the unpaid users in a relatively good position with regards to collecting the full amount they're owed. IANAL, though.

[finkleshnorts]

How does Bitcoinica's alleged lack of legal registration affect their poor security?

Paraipan filed a report against Bitcoinica for possibly violating technical laws. Others recently filed a report against Bitcoinica for failing to compensate owners what they're due, which was not the result of Bitcoinica not releasing where or how they're registered with the government, though that will affect how much users are rewarded if legal action is successful. If Bitcoinica failed to register, the owner/ops are at pretty extreme risk, and the unpaid users in a relatively good position with regards to collecting the full amount they're owed. IANAL, though.

Press came out when they registered in New Zealand, or something

[repentance]

How does Bitcoinica's alleged lack of legal registration affect their poor security?

It's a bit complicated but because the paperwork for the company acting as General Partner in Bitcoinica LP hadn't been completed when the Rackspace intrusion occurred there was considerable legal wrangling about who was responsible for the losses and who had the legal authority and duty to refund users.

Having the legal paperwork in order would not have prevented the breaches.  The manner in which the breaches occurred might give rise to additional liability though.

[R-]

Parapian's on a streak! First bitcoinica, now TizzyTazzy, what scam...

Woh... what happened to Tiz?

[rjk]

Parapian's on a streak! First bitcoinica, now TizzyTazzy, what scam...

Woh... what happened to Tiz?

Revealed as a previous scammer when a different trade went haywire.

[Starlightbreaker]

Parapian's on a streak! First bitcoinica, now TizzyTazzy, what scam...

Woh... what happened to Tiz?

Revealed as a previous scammer when a different trade went haywire.

shit, no wonder he's gone now

my most reliable gold supplier went missing, argh.

[Raize]

Paraipan took a lot of crap for his actions that he didn't deserve, IMHO. I didn't stick up for him in that thread, but I was always very critical of Bitcoinica on Reddit. It seemed like one of those sites where the guy building it was testing things as they went into production and it just didn't seem like a safe place to store money. That said, hindsight is 20/20. This latest twist seems extremely convoluted. Usually the easiest explanation is the most likely one, and I am not convinced there are any innocent parties here. Everyone from the exchanges down to Zhoutong look like scumbags.

[teflone]

Oh no...

Comtrails is actually the guvment putting out vapor to control my mind...   :O