I'm back!

[Phinnaeus Gage]

Very few people have met me so far

Name one.  Just one on this forum who has any level of trust, and is known face-to-face by other users.

One.

I've yet to met up face-to-face with a fellow Bitcoiner, although The Joint doesn't live that far from me. Close to the same neighborhood lives another Bitcoiner of which my dad and I once picked a giant pile of garbage from the yard of his neighbor when they were evicted.

[Vod]

I suggest that at the very least Zhou receives an "Untrustworthy" tag.

Good luck with THAT.  Zhou has paid off the forum.  Your coins are being used to update this forum's software.   

[jubalix]

This Chen Jianhai story is the biggest load of poppycock I've ever heard.

All one needs to do is to read this:
https://bitcointalk.org/index.php?topic=95795.msg1055627#msg1055627

And this:
https://bitcointalk.org/index.php?topic=95738.msg1054890#msg1054890

Lets review the facts:

• Chen Jianhai is a multi-millionaire relic collector with a family living in the cold and remote Heilongjiang Province in China who owns an online 'Taobao' store.
• Chen Jianhai is not technical and his English is poor
• Chen Jianhai is Zhou's former business associate, but not his friend
• Chen Jianhai is likely a long-time criminal quite active in financial black markets with an active presence in stolen credit cards and possibly other hacks. (according to Zhou's observations)
  
• Chen Jianhai has a technical co-worker that is "in-to-bitcoin" and discovers that the source-code has been leaked.
• Chen Jianhai inspects the code and discovers that the MtGox API key is also the master password for Tihan's lastpass account containing the passwords to both Bitcoinica's and Christopher Heaslip's MtGox account. The lastpass account (originally set up by Zhou) was not protected by 2factor. And both MtGox accounts were also not protected with a yubikey.
• Chen Jianhai logs in to the MtGox account and withdraws the maximum number of Coins (40.000 BTC & 40.000 USD). For the USD he creates a MtGox code that he claims on Heaslip's account and uses the USD to buy more BTC.
• Chen Jianhai then withdraws all the coins to Zhou's blockchain.info account. From where he sends them to his servers in America.
• Chen Jianhai decides to frame Zhou stating "it would be impossible to discover the hacker" and "it would be much easier to deny if the suspect account is an insider because you (Zhou Tong) can always distract people from investigating"
• Chen Jianhai knows Zhou's secret sockpuppet identity (stevejobs807@gmail.com) and also his password since Zhou has used Chen's webshop once and re-used that password.
• Chen Jianhai exchanges MtGox coupons worth 40.000 USD to Liberty Reserve through the instant exchange facility at AurumXchange using Zhou's secret identity.
• Coincidentally Zhou also has an order with AurumXchange to sell Liberty Reserve to us for the amount of USD 40,000, requesting a wire to his bank account in Singapore. (for a friend)
• Chen Jianhai then feels the need to create an email account <bitcoinicasucks@hotmail.com> and email verify@bitcoinica.com with the text "THANK YOU FOR YOU SOURCE CODE. BITCONICA IS NOW OFFICALY DONE! LASTPAS PASWORD: c02e1a27-5524-449f-ba65-aff9581ddedc" Despite being able to write perfect english in the subject line, somehow in the body text his CAPS key got stuck and he lost the ability to spell.
• Chen Jianhai is confronted by Zhou who figured it all out after being accused himself only a few hours earlier.
• Chen Jianhai admits everything to Zhou
• Chen Jianhai (despite being a multi-millionaire) was only able to return 20.000 BTC and 140,000 USD  due to the cost of his laundering activities and also the significantly lower Bitcoin price when he cashed out.
• Chen Jianhai (before he was outed) discovers that Zhou is giving 5000 BTC out of his own pocket to Bitcoinica customers and decides to donate 100 BTC of the hacked funds to Zhou's community donation pool
• Chen Jianhai's identity is only known by Zhou, but unfortunately Chen Jianhai is now gone (phone: powered off, QQ: offline, email: no response) and the Alipay account got its password changed

Of course before Chen mysteriously disappeared Zhou stated that "Currently I'm very willing to co-operate with any investigation because this is the only way I can completely prove my innocence." and "I have repeatedly said that I have zero tolerance in this matter and I will report all his information, including his real bank account number and address to the police once the official investigation has started."

However when I wanted to file a police report with my local authorities and asked Zhou to provide me the address details for Chen, I received the following reply:

If you insist on filing a police report on this matter, any lack of co-operation from my side can of course be used against me in the uncertain future.

I'm not protecting his identity. I just deem it to be unnecessary at this point. He is not running away (AFAIK he doesn't even have a passport), and the fund return is pending Bitcoinica's liquidation.

I want to go back to my own business and focus on something productive. Any information I provide now will necessarily be a burden in the near future.

I strongly advise you not to involve the police before the liquidation process has any significant development. You are not obliged to report this. (But when you do, I'm obliged to provide information to either you, or the police, and obviously I would prefer the former.)

My point is, there is very little benefit to this, yet the risk and potential expense are too high. I don't want to hire a lawyer or waste my time on gathering evidence or whatever. I contributed 5,000 BTC and talked to the creditors regularly exactly because I wanted to avoid any lawsuits against me. I'm all for justice, but I have already given up on Bitcoin and justice in this matter seems worthless to me.

Considering the suspicion raised by community members, the questions from trusted business partners and threats of violence, I don't have any energy to fight back any more.   I just want the fiasco to be over. Yet people are giving me more and more troubles. It's okay if you can't feel the pain, please just try to sympathize.

I have plans to immigrate to Australia and I need an absolutely clean record. Even a criminal accusation (without conviction) is intolerable in the character check. I really deeply regret the creation of Bitcoinica. If you can forget about me, please do.

I'm returning to Melbourne on October 6, 2012. Hopefully something will happen at Bitcoinica side, and you have plenty time to re-consider your decision before then.

I agreed and waited for Zhou to return to Melbourne. However upon his return Zhou ignored all my follow up emails. I have never been able to obtains any details about Chen from Zhou nor have I been able to file an actionable report. In the mean time Bitcoinica creditors are still smack in the middle of what must be the largest clusterf*ck in bitcoin history with the MtGox account orphaned and frozen. The AurumXchange funds still missing and an ongoing lawsuit against the Bitcoin Consultancy by the largest creditors. Considering that Bitcoinica had around 1M USD in deposits when it got hacked, and conservatively estimating 50% of that to be in BTC, at current valuations we are talking in excess of 15,000,000 USD still pending liquidation. Or what is left of it.

Now, Zhou returns 1 year later, hoping the dust has settled with his "Hero member" tag still in tact. Well played sir!

I suggest that at the very least Zhou receives an "Untrustworthy" tag. Although I do realize that might be an insult to MNW whom I regard much more highly.

This looks very comprehensive, and well set out.

[zhoutong]

I agreed and waited for Zhou to return to Melbourne. However upon his return Zhou ignored all my follow up emails. I have never been able to obtains any details about Chen from Zhou nor have I been able to file an actionable report. In the mean time Bitcoinica creditors are still smack in the middle of what must be the largest clusterf*ck in bitcoin history with the MtGox account orphaned and frozen. The AurumXchange funds still missing and an ongoing lawsuit against the Bitcoin Consultancy by the largest creditors. Considering that Bitcoinica had around 1M USD in deposits when it got hacked, and conservatively estimating 50% of that to be in BTC, at current valuations we are talking in excess of 15,000,000 USD still pending liquidation. Or what is left of it.

Now, Zhou returns 1 year later, hoping the dust has settled with his "Hero member" tag still in tact. Well played sir!

I suggest that at the very least Zhou receives an "Untrustworthy" tag. Although I do realize that might be an insult to MNW whom I regard much more highly.

Sorry ninjarobot. I was really annoyed and depressed at that time so I didn't give a response to you. However, I have replied your email with his bank account and address information that I currently have. Hope it'll be helpful to whatever you plan to do.

I'm a little disturbed by the fact that you posted my email reply publicly without my permission. It's not a big deal but I was really emotional at that time (and I wouldn't have said those words if it's not private communication). It'll be great if you can treat it as strictly personal rather than public announcement.

[simonk83]

Welcome back.  Now, about that huge crime you pulled off...

[wumpus]

Welcome back. You have some balls to come back here with your original name. But it's a honest gesture.
I hope you have learned from your mistakes and will be more careful this time.

[ninjarobot]

Sorry ninjarobot. I was really annoyed and depressed at that time so I didn't give a response to you. However, I have replied your email with his bank account and address information that I currently have. Hope it'll be helpful to whatever you plan to do.

Thanks Zhou. I have received it and will pass it on to the Bitcoinica Liquidator.

I'm a little disturbed by the fact that you posted my email reply publicly without my permission.

My apologies. I realize it was a bit of a d*ck move. However I do feel it is important that the whole truth is revealed and there were no disclaimers on the email. I should have asked for your permission though.

[zhoutong]

Some of you are right. I shouldn't really start this thread. It will just bring back all the arguments all over again.

I have posted conclusive evidence that I was traveling during the Bitcoinica hack and it's consistent with my claim that I was dealing with a Singapore friend (in-person) for the LR transfer.

I was trying to give as many details as possible regarding CJH's involvement. That's pretty much all the available information I have. He returned almost all funds but in the wrong asset combination, and Bitcoinica failed to adjust the recovered funds to the right combination, as a result BTC liability has rocketed before the liquidation has shown any progress.

There are good reasons for the forum to not label me a Scammer. One of them is the fact that I'm not. The other is the lack of conclusive evidence. I trust forum admin's rational consideration and our community will be more harmonious if there can be less finger-pointing and heartless accusations. I'm still a teenager and it was really not easy to have gone through this.

It's perhaps better for me to silently focus on my work and deliver something good for Bitcoin that doesn't require much trust. My reputation is pretty much ruined in this community regardless of how much evidence I bring to the table. (It's easy to blame people.)

Again, just want to say that I'm back, for the good. You always need to choose who to trust carefully and I'm well aware that any project I create in the future will only gain as much credibility as a Newbie with 5 posts.

[zhoutong]

Sorry ninjarobot. I was really annoyed and depressed at that time so I didn't give a response to you. However, I have replied your email with his bank account and address information that I currently have. Hope it'll be helpful to whatever you plan to do.

Thanks Zhou. I have received it and will pass it on to the Bitcoinica Liquidator.

I'm a little disturbed by the fact that you posted my email reply publicly without my permission.

My apologies. I realize it was a bit of a d*ck move. However I do feel it is important that the whole truth is revealed and there were no disclaimers on the email. I should have asked for your permission though.

I appreciate your understanding.

I said those words because I trusted you not to use any of the information against me (not strictly legal context, but rather more applicably, social context). I wanted to show some good faith and integrity but the community's blame had hurt all my confidence.

[simonk83]

(It's easy to blame people.)

Well it's not always easy to blame people, but in this case it was fairly easy, yeah.   We'll see what comes of the Chen information, but forgive me if I won't be at all surprised if he's "mysteriously disappeared".

[Maged]

Zhou,

Don't be discouraged by all of the negative posts you see here. There are plenty of people watching this from the sidelines just to see how this plays out that are really on your side here. You have a lot more potential than you imagine.

[Matthew N. Wright]

You have a lot more potential than you imagine.

That's exactly what their worried about.

[zhoutong]

Zhou,

Don't be discouraged by all of the negative posts you see here. There are plenty of people watching this from the sidelines just to see how this plays out that are really on your side here. You have a lot more potential than you imagine.

Thanks Maged. I did receive a few PMs and many more emails. Some people are still happy to invite to join their startups despite all this drama.

I'm here much more prepared this time, with two fairly successful businesses and frequent contacts with my best friends on a daily basis. I have also spoken to a counsellor last year. So it's not really that easy to be discouraged, to be honest.

[Maged]

You have a lot more potential than you imagine.

That's exactly what their worried about.

You're one to talk...

What Zhou needs are some good partners who know what they're doing. Admittedly, the problem there is figuring out who that could be, as we've seen.

[Matthew N. Wright]

You have a lot more potential than you imagine.

That's exactly what their worried about.

You're one to talk...

What Zhou needs are some good partners who know what their doing. Admittedly, the problem there is figuring out who that could be, as we've seen.

I didn't say *I* was worried, I said they were.

[Transisto]

I contributed 5,000 BTC and talked to the creditors regularly exactly because I wanted to avoid any lawsuits against me.

I'd like to remind you ; That 5000BTC !,,, You've thrown it out of the window, You haven't verified claims other than maybe glancing over them for a minute.

That is an irresponsible move only someone with too many illegitimately acquired BTCs would pull while seeking both repentance and praises from the public.

You're a wise ass, but time will get it back onto you.

[zhoutong]

I contributed 5,000 BTC and talked to the creditors regularly exactly because I wanted to avoid any lawsuits against me.

I'd like to remind you ; That 5000BTC !,,, You've thrown it out of the window, You haven't verified claims other than maybe glancing over them for a minute.

That is an irresponsible move only someone with too many illegitimately acquired BTCs would pull while seeking both repentance and praises from the public.

You're a wise ass, but time will get it back to you.

At least I sent the largest portion of the compensation to Roger Ver, whom I know and trust very much. I believe I have also verified all claims above 1000 BTC.

There may be some rough claims of 10 BTC or 50 BTC, but they represent a tiny proportion. Again, it's my money and you have no right over the allocation of the sum.

EDIT: Trace the coins all you can. Aside from the 100 BTC donated by hacker I'm pretty sure the rest are legitimate coins once stored in either Mt. Gox or Bitcoinica.

[Transisto]

I contributed 5,000 BTC and talked to the creditors regularly exactly because I wanted to avoid any lawsuits against me.

I'd like to remind you ; That 5000BTC !,,, You've thrown it out of the window, You haven't verified claims other than maybe glancing over them for a minute.

That is an irresponsible move only someone with too many illegitimately acquired BTCs would pull while seeking both repentance and praises from the public.

You're a wise ass, but time will get it back to you.

At least I sent the largest portion of the compensation to Roger Ver, whom I know and trust very much. I believe I have also verified all claims above 1000 BTC.

There may be some rough claims of 10 BTC or 50 BTC, but they represent a tiny proportion. Again, it's my money and you have no right over the allocation of the sum.

EDIT: Trace the coins all you can. Aside from the 100 BTC donated by hacker I'm pretty sure the rest are legitimate coins once stored in either Mt. Gox or Bitcoinica.

I wrote you a 2 page reply to tell you how much this lost had affected me.
I had written the details of my claim "open positions" in the note field.
Not giving a fuck was pretty much what your response conveyed.

My claim is of almost 3000BTC

Edit : I understood you did that only to gather praise from the public and then get the attention away from you ASAP.

Edit 2 : It's not because these 5000 coins were legit that the stolen coins didn't made those less valuable to you. (coin mixing is rather effective and you knew it)

Edit 3 : How can you claim the hacker returned everything ? He converted 20 000 btc into 100 000$ while the exchange rate was ~7$ ? He kept 50 000$ ?

[ninjarobot]

EDIT: Trace the coins all you can. Aside from the 100 BTC donated by hacker I'm pretty sure the rest are legitimate coins once stored in either Mt. Gox or Bitcoinica.

The fact that Zhou accepted 100 BTC of the stolen coins as a donation to his personal fund distribution represented a clear conflict of interest. He should have sent that directly back to Bitcoinica. I did receive some compensation from Zhou's donation fund and decided to send 100 BTC from that back to the Bitcoinica Recovery Fund managed by Patrick Murk to compensate for the hacker donation. So that should be covered now.

Transaction ID: http://blockchain.info/tx-index/14361561/bb91cd10d615ffa39a092100708168567a440e3f2adb171a550de91ad990e1e9

Also note that the recovery fund only received ~15.000 BTC back from Chen Jianhai through Zhou. Although Zhou claimed that he could recover 20.000 BTC from Chen. I wonder if he is counting his 5000 BTC compensation as part of the recovery funds... And if not, why is there 5000 BTC is missing from the reclaimed funds? (It might be explained somewhere, in which case I missed it)

Recovery address: http://blockchain.info/address/1N99P8Z5AQXWEYZiS6ddov9Fyc4kuGPpwJ (15,006 BTC)

I have gathered some data to estimate the amount that can be recovered from Chen Jianhai:

USD: about $140,000 + $5000 frozen at AurumXchange (under SJ account)
BTC: about 20,000 BTC

There's an unknown amount of funds left in Chris Heaslip's account and I have no way of knowing the exact balance.

Chen Jianhai was only able to offer the above-mentioned amount due to the cost of his laundering activities and also the significantly lower Bitcoin price when he cashed out. If Bitcoinica or the community wants him to cover the full amount at today's prices, I'm willing to co-operate with any police investigation. But either case, my previous donation should have pretty much covered the difference.

[Inedible]

Whatever happened to the Fund managed by Patrick Murk? Did he ever distribute any of those funds to the creditors?

Do people still trust those guys that ran Bitcoinica during this saga? I see they're running new businesses but I for one won't touch them with a bargepole.