[WTS] Bitfloor Debt - 103 BTC

[Entropy-uc]

I find myself in the inconvenient position of being an involuntary creditor to Bitfloor and Roman Shtylman in the amount of 103 BTC.

I am taking offers for the purchase of this debt and all related legal rights.

[1713964104]

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[BitcoinForLiberty]

I am in a similar position as you with ~600 BTC at Bitfloor. It is frustrating to have these funds unavailable and in such peril when my expectation a week ago was that they were secure.

However, this is not Pirate we are talking about. This is Bitfloor, backed by Roman Shtylman, architect of the best bitcoin exchange software out there. Roman has stated that he wants a chance to make things right with his BTC account holders:

“Once trading resumes, I hope to be able to start repaying BTC losses using the proceeds from fees. More information about this will be provided later. “

Rather than threatening lawsuits, I hope that we can step back a bit and think about how we can act like a team and make this turn out best for everyone. Rather than attack Roman and restrict his options to defensive maneuvers, I propose we give him some time and space for him craft a comeback.

It is obvious that exchange security problems need attention right now. Let's band together as a community and see if we can solve this problem. It is likely that Roman will be the one to lead the charge on this problem. If we can help solve it, our bitcoins will  become more valuable.

How can we help Roman reopen Bitfloor with a next generation security protocol? Maybe we should discuss what that security protocol/architecture would look like.

But please, let's not degenerate into useless lawsuits. The truth is you did business with Bitfloor, not Roman, so you will not be able to get a judgement for any of his personal assets. And there aren't many Bitfloor assets to be had right now with USD balances going back to their owners.

[Entropy-uc]

Bitfloors losses amount to 8 years of revenue.

He has made the decision to preferentially reimburse creditors by releasing US dollar funds.

In addition, the market is giving a clear signal; I have recieved only one vaguely serious off at less than 25% of the debt.  People have less faith in Roman than they had in Pirate 2 weeks ago.

Unless Roman makes substantial moves in the next week or so, I will take action to protect my interests as best as I can.  Largely for the laughs though.  The concesus clearly expect absolutely no recovery of bitcoin losses. 

Given the prevalent viewpoint on the board.  Exactly how much trading do you think a restarted Bitfloor will do?  Keep in mind that whether you happened to hold US$ or BTC at the time of the hack was largely a random function.  All my Bitcoin were out on an ask very nearly the prevailing price.  There is someone pulling his US$ out this week who is pleased with their good luck in choosing to not hit my ask.  Given the completely random method of choosing what obligations he will satisfy, Roman is out of the BTC handling game forever.

Roman, feel free to prove me wrong.  At present you have communicated less about your intent to fufill your obligations than Trendon Shavers has done.

[BIGMERVE]

Bitfloors losses amount to 8 years of revenue.

He has made the decision to preferentially reimburse creditors by releasing US dollar funds.

In addition, the market is giving a clear signal; I have recieved only one vaguely serious off at less than 25% of the debt.  People have less faith in Roman than they had in Pirate 2 weeks ago.

Unless Roman makes substantial moves in the next week or so, I will take action to protect my interests as best as I can.  Largely for the laughs though.  The concesus clearly expect absolutely no recovery of bitcoin losses. 

Given the prevalent viewpoint on the board.  Exactly how much trading do you think a restarted Bitfloor will do?  Keep in mind that whether you happened to hold US$ or BTC at the time of the hack was largely a random function.  All my Bitcoin were out on an ask very nearly the prevailing price.  There is someone pulling his US$ out this week who is pleased with their good luck in choosing to not hit my ask.  Given the completely random method of choosing what obligations he will satisfy, Roman is out of the BTC handling game forever.

Roman, feel free to prove me wrong.  At present you have communicated less about your intent to fufill your obligations than Trendon Shavers has done.

I think if Bitfloor goes back online it won't be as popular. Losing that much money destroyed people's confidence. He would really have to convince us that hes taking security very seriously.

[jwzguy]

I see you have still not replied to my request to provide evidence for your last dubious statement about Bitfloor's operation. At this stage, coupled with the further misleading statements you've just made, it looks to me like you're trying to start a smear campaign.

[scintill]

Given the completely random method of choosing what obligations he will satisfy, Roman is out of the BTC handling game forever.

It is not completely random, it is based on the fact that Bitfloor actually holds all the USD on their books, and doesn't hold many BTC.

Yes, as you mentioned, it can be "random" whether a given person's assets on Bitfloor were in USD or BTC at the time of the hack.  I suppose you think they should sell someone else's USD so they can give you your BTC?

[BitcoinForLiberty]

I think Bitfloor could be more popular immediately upon reopening than it was a week ago if (1) it could immediately make all deposited BTC available for withdrawal and (2) it demonstrated a new security approach that is perceived as innovative and robust. This is possible. There are a lot of people who have had great experience with Roman and Bitfloor and are willing to back him as an investor. I am willing to consider doing so myself. A relevant fact is that Bitfloor doubled its volume between June and August, showing they were really doing something right.

If they could demonstrate that they could keep obligations to customers even in the event of a security breach and also show that another security breach is extremely unlikely, then this would mean Bitfloor is the safest exchange to use.

Also, no publicity is bad publicity as they say. It has attracted a lot of attention these last few days.

[Entropy-uc]

I think Bitfloor could be more popular immediately upon reopening than it was a week ago if (1) it could immediately make all deposited BTC available for withdrawal and (2) it demonstrated a new security approach that is perceived as innovative and robust. This is possible. There are a lot of people who have had great experience with Roman and Bitfloor and are willing to back him as an investor. I am willing to consider doing so myself. A relevant fact is that Bitfloor doubled its volume between June and August, showing they were really doing something right.

If they could demonstrate that they could keep obligations to customers even in the event of a security breach and also show that another security breach is extremely unlikely, then this would mean Bitfloor is the safest exchange to use.

Also, no publicity is bad publicity as they say. It has attracted a lot of attention these last few days.

I agree with what you say here.  But your if is an enormous one.  And Roman's silence on either intent or the means to repay the BTC holders is deafening.

Every day that situation continues adds to the people that will never return to his business.

My motivation for offering his debt for sale here was largely curiousity on the concensus opinion of the likelyhood he will ever repay.  There was a lot of people eager to invest in Bitfloor right after his announcement.  Stranglely, none of them are stepping up with bids.

[shtylman]

And Roman's silence on either intent or the means to repay the BTC holders is deafening.

I realize that everyone wants answers today and expect a resolution to happen immediately. Unfortunately, give the current situation it will take some time to come to a resolution and have a clear path forward. Updates will be provided as relevant and meaningful information is available.

I would also like to remind everyone that accounts cannot be transfered and when dealing with an account I will only be able to deal with the original account holder. If you accept another user's obligation you are doing so on your own and we will not facilitate such transfers nor will we be able to allow you to take over their account.

[chaosman]

I would also like to remind everyone that accounts cannot be transfered and when dealing with an account I will only be able to deal with the original account holder. If you accept another user's obligation you are doing so on your own and we will not facilitate such transfers nor will we be able to allow you to take over their account.

I know you are going through a lot right now, and I understand your position. And I wish you nothing but the best of luck.

However if two parties were to execute an assignment as allowed per N.Y. GOB. LAW § 5-1101 et seq.  that assignment would be legal binding. The same rules apply if a court with proper jurisdicition were to appoint a receiver..

Personally, I have not taken assignment of anything in regards to your company. But this is something that I do on a daily basis pre-judgment and post-judgment in NY and NJ.  

Of course, the assignment has to be proper i.e. done according to NY law...
Honestly, if any of these transactions did occur, I doubt they were properly executed for a valid assignment..

Again, I wish you nothing but the best of luck. I hope people do understand that these things do take time..and updates can only be given when the timing is proper. Bad information causes more harm than good for all parties.

[Entropy-uc]

And Roman's silence on either intent or the means to repay the BTC holders is deafening.

I realize that everyone wants answers today and expect a resolution to happen immediately. Unfortunately, give the current situation it will take some time to come to a resolution and have a clear path forward. Updates will be provided as relevant and meaningful information is available.

I would also like to remind everyone that accounts cannot be transfered and when dealing with an account I will only be able to deal with the original account holder. If you accept another user's obligation you are doing so on your own and we will not facilitate such transfers nor will we be able to allow you to take over their account.

Thanks for stopping by.  But your refusal to facilitate any transfers seems like a breach of faith to me. There is no justification for refusing to allow such exchanges if you ever imagine to continue business.

Please post case numbers and the lead investigator names for the theft reports.

[Bitcoin Oz]

And Roman's silence on either intent or the means to repay the BTC holders is deafening.

I realize that everyone wants answers today and expect a resolution to happen immediately. Unfortunately, give the current situation it will take some time to come to a resolution and have a clear path forward. Updates will be provided as relevant and meaningful information is available.

I would also like to remind everyone that accounts cannot be transfered and when dealing with an account I will only be able to deal with the original account holder. If you accept another user's obligation you are doing so on your own and we will not facilitate such transfers nor will we be able to allow you to take over their account.

This means people will file small claims against you because thats the only way they can proceed if you cut off the option of transferring debt to those who dont mind waiting  for you to reopen.