Make Bitfloor solvent so it can resume operations then pay back losses

[BitcoinForLiberty]

Now that Bitfloor is returning USD balances, people with BTC balances have even less to lose by volunteering to make BTC balances a loan to Bitfloor. I gather Bitfloor has 6,000 BTC but owes 30,000 BTC. This would mean that in the event of Bitfloor bankruptcy, there would be 6,000 BTC minus attorney fees and other costs to distribute to the BTC holders. We can be pretty confident this equates to at most 10 cents on the dollar. It doesn't make financial sense to seek this outcome if Roman wants to take a shot at paying back BTC holders in full over time with exchange revenues.

I say if he wants to try to make BTC holders whole over an extended period of time, it is in the interest of Bitfloor BTC holders to call their balances a long term loan, thereby making Bitfloor solvent and allowing them to begin trading again.

To make this possible we need large BTC account holders to step forward and negotiate their balances into loans. I have ~600 BTC at Bitfloor. I am willing to convert this balance to a long term loan.

Any one else willing to do likewise?

[zakeroni]

I say if he wants to try to make BTC holders whole over an extended period of time, it is in the interest of Bitfloor BTC holders to call their balances a long term loan, thereby making Bitfloor solvent and allowing them to begin trading again.

To make this possible we need large BTC account holders to step forward and negotiate their balances into loans. I have ~600 BTC at Bitfloor. I am willing to convert this balance to a long term loan.

Any one else willing to do likewise?

I had 100 BTC in Bitfloor at the time of the hack. This is something that I would be interested in... but of course that's all dependent on a solid, secure plan for the exchange's future.

[Bastone]

Yeah a much improved security system seems like it would be necessary.

[bitfair]

Bitcoins are not recognized as real money and thus have nothing to do with solvency in the formal sense.

Your "likelihood of litigation" hobgoblin is purely academic, and assumes the existence of entire bodies of law and precedent which do not yet exist.

Good luck convincing a real judge to care about your experimental imaginary internet nerd tokens. 

Bitcoins may not be recognized as "real money", but I have no doubt at least some judges could be convinced that they classify as assets - i.e. exchangable for money. And assets are taken into consideration in both bankruptcy proceedings and litigation processes.

Although I didn't have any coin at BitFloor, I have to agree with BitcoinForLiberty: converting the BTC balances to equity or loans sounds better than forfeiting the balance and waiting for the bankruptcy proceedings to play out.

Converting the balances to equity or loans should be entirely legal too. I think perhaps doing an "IPO" on GLBSE might be a mistake - there are very strict regulations surrounding public offerings. But private equity, on the other hand, would be fine - and private equity can normally be traded quite easily OTC, or even might be registered at an exchange and traded on an exchange (which is still different than doing an Initial Public Offering).