Bitcoinica liquidator wants to hear from users

[dancingnancy]

I'm thinking it is highly unlikely that we'll ever see the money.  Does anyone know how can I declare this as a loss for my US taxes?  I'm filing a late return.

Do I declare it as a capital loss on form 8949?  I actually lost US dollars, so I'm not sure if this is a capital loss. If I had lost BTC - that would make more sense to treat it as a capital loss.   I think this loss would be treated similar to a having a savings account at a bank that goes bankrupt (and that isn't covered by insurance).

This is a similar situation to having US dollars at MtGox and losing it. How is that treated by tax authorities?  Admittedly MtGox users may get some of their money back.  So they may have to wait for the liquidation to calculate the loss.

Probably wouldn't do anything yet.  Most we can write off is 3k anyway, I believe. 

[nrd525]

If it's a capital loss and you have gains that exceed it, you should be able to write off as much as you lose.  (Eg. no 3k limit).

[dancingnancy]

We got a new EMail.  Now they want to fly to Japan to get answers because no one is replying back to the liquidators :/

Sounds like bitcoinica assets also = approx 10% of all Mt Gox, IIRC.

[nrd525]

Liquidators are out of funds and are relying upon contributions to continue their work.  Ex. they want money to fly to the MtGox bankruptcy hearing (though attendance isn't mandatory).

The amount of claimed BTC is 91k vs the 65k that MtGox had or owes us.  So it looks like some people are over-estimating (and possibly attempting to defraud) the liquidation process.

Some big customers should probably fund the liquidators.  (Not me I lost around $450).  This report seems to have much more action that prior reports and we may be closer to getting a fraction of our money back.

[dancingnancy]

Yes, seems a lot more detailed.  Although I almost remember only 60k BTC claimed on all the other reports.  Now it is 90k+ as you have stated. 

If they go to Japan, are they actually going to talk to someone or just come back with the excuse that "no one will respond to us."

[realnowhereman]

Write it off and move on guys. Bankruptcy within a bankruptcy is just a money pit. These thieving liquidators have already burned through all the cash that could have been returned to the cash creditors. Don't give them any more funds to burn not getting any BTC back.

Even if they managed to get hold of any btc from mtgox, does anyone think they'll refrain from burning through a big chunk of that too?

[dancingnancy]

It sounds like they are looking for around $500 from ten individual creditors.  I am in school still, so it isn't like I have a ton of money, but I am going to send them the money.  I am course owed 100+ BTC, so I guess I will take one last stab at it. 

Please, if anyone has the coin, contribute what you can.  I know it sounds like a losing battle.  Hopefully there is light at the end of the tunnel.

[h0lybyte]

I am really interested in how this works out!

My team is looking over this and learning from all the mistakes (we arnt looking to enter that sort of market at all) but we would love some user feedback! We are looking to write up a full report on the whole issue.

Hopefully it will shine some light and help new users understand situations like these (and make sure they dont fall into the same pit).

[realnowhereman]

People: they've spent over $100,000 over the last couple of years to do nothing -- almost 100% of the cash assets.  Don't send these vampires any more of your hard earned money.

Should they manage to get their hands on the BTC that is ours, what on Earth makes anyone think that they won't burn through a similar percentage of that "returning" it to us?

I've lost a ridiculous value of BTC, as I'm sure have many others.  But I truly believe that it's gone, and no amount of pouring money into the liquidators hands is going to get it back.  Jeez, just look at what they're asking for... $10,000 to attend a meeting in (presumably) Japan from New Zealand.  Are they chartering a jet or something?  No -- they are going to fly five of them 1st class on our dime, put themselves up in $500 a night hotels,  and then bill us $500 a day for a few weeks of "research" -- how else would you come up with a $10,000 estimate?

[nrd525]

I personally think it is worth spending $9k US (nz currency is worth around 88 cents) to recover $40 million in bitcoins.

In fact it is worth spending at least another $100k.

Sure you aren't going to recover $40 million, but you might anything from $500k to $8 million.

It only isn't worth it if your claim on MtGox is stronger than your claim on Bitcoinica - in which case you'd want Bitcoinica to get nothing.

[tbcoin]

I think that is very important have some representation in the meeting, this process started long time before the Mtgox disaster, we are not victims of the sudden fall of Mtgox, we have been deliberately stolen. They have blocked this process for over a year and the most probably is that our funds have been used to keep afloat Mtgox all this time.

Getting a preference treatment on the distribution process need be our priority and this is the only way.

[dopamine]

anyone intrested to fund them to get answers?  I might be interested?

[dancingnancy]

I am going to contact them by phone here shortly.  Through previous conversations they are looking for $500 from 10 creditors.  I originally thought I could contribute more, but I can probably do $250

I am hoping if we give them more money then they will return it back to the creditors that backed this excursion when (if) we ever get back this money.

[tbcoin]

Obviously nobody is happy with this people, but we are 202 users claiming about $60M, if they can't collect $8k will be a clear signal of resignation.

Mtgox has been the only thing that has hindered the liquidation all this time. Now that is no longer in the hands of Mtgox, it's time to restore hope. The liquidators have to be at the meeting of creditors.

[dancingnancy]

Obviously nobody is happy with this people, but we are 202 users claiming about $60M, if they can't collect $8k will be a clear signal of resignation.

Mtgox has been the only thing that has hindered the liquidation all this time. Now that is no longer in the hands of Mtgox, it's time to restore hope. The liquidators have to be at the meeting of creditors.

pretty good point i guess

[dopamine]

Obviously nobody is happy with this people, but we are 202 users claiming about $60M, if they can't collect $8k will be a clear signal of resignation.

Mtgox has been the only thing that has hindered the liquidation all this time. Now that is no longer in the hands of Mtgox, it's time to restore hope. The liquidators have to be at the meeting of creditors.

pretty good point i guess

+ 1 what is another 500 bucks or 25 bucks each....

[dancingnancy]

I was informed that they are not going to accept BTC as payment towards this trip out to Japan.  If anyone can send them cash for me I am willing to contribute $250 worth of BTC towards the cause if it will do any good at this point.  LMK.

[tbcoin]

I was informed that they are not going to accept BTC as payment towards this trip out to Japan.  If anyone can send them cash for me I am willing to contribute $250 worth of BTC towards the cause if it will do any good at this point.  LMK.

I am trying contribute since few days ago but look like they ignore my emails...

[dopamine]

email from today
Please deposit the agreed funds into the following bank account, which needs to be received by 9:00am New Zealand Standard time on Wednesday 16 July 2014.

 

Account Name:                             PKF Corporate Recovery & Insolvency (Auckland) Limited – Trust Account

Account Number:                          0697455-00

BSB Number:                               123057

Swift Code:                                  ASB BNZ 2A

Bank Name:                                 ASB Bank Limited

Bank Address:                             19 Hargreaves Street, Ponsonby,  Auckland, New Zealand

 

If we do not receive sufficient funds to meet the cost of attending the meeting then the funds will be returned to you less any applicable bank charges.

[zero3112]

Any updates on this?