Hello all,
I see lophie closed his thread to not disperse information among subforums, but Ukyo responded almost exclusively on the the securities board so I'm starting this new thread hoping in a better comunication from him.
He stated that:
So, now he could use this as reference.
Please DO NOT POST HERE YOUR PROCESSING WITHDRAWALS, do it in the
scam accusation thread, it is already filled with a lot of user's withdrawals infos and lophie is trying to track the amount of coins/usd stucked in weexchange.
Here I'll try to report in chronological order Ukyo's announcements about this mess, relevant infos and updates on successfull withdrawals (althoug up to now are very few).
Many posts come from locked lophie's thread, so I couldn't simply quote them and copy&paste here, but had to wrap the contents and fix the reference links, so some link could be broken, tell me if you find something wrong (all the date post links from the lophie thread refer to 1 january 1970, I had to convert all dates to unix timestamp, but the correct date is reported in red above each post).
Also suggestions are welcome if you think I missed something useful.
Disclaimer: I have about 10.5XBT currently in processing status on weexchange
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UPDATE AFTER 4 YEARS: THEY CAUGHT HIM!BitFunder Operator 'Close to' Plea Bargain in SEC Fraud Case -
https://www.coindesk.com/bitfunder-operator-close-to-plea-bargain-in-sec-fraud-case/The operator of defunct bitcoin investment platform BitFunder, Jon Montroll, is reportedly seeking a plea bargain over fraud and other charges laid against him by the U.S. Securities Exchange Commission (SEC).
FinanceFeeds indicated Thursday that, according to a document submitted by Montroll's legal counsel, "a plea agreement agreed upon in principle and expected to be finalized and entered by July 23" has accelerated efforts to reach a final court resolution.
Back in February, Montroll was hit with a number of charges for operating what the SEC said was an "unregistered securities exchange" and allegedly using the platform to defraud users of their cryptocurrency.
Separately, Montroll is accused of perjury and obstruction of justice over his failure to report a hack of his second business, WeExchange, in 2013. The breach ultimately saw roughly 6,000 bitcoins stolen – now worth some $68.7 million. The accused reportedly transferred some of his own cryptocurrency holdings to the exchange in an attempt to conceal the losses.
According to the New York Attorneys Office, William F. Sweeney Jr., FBI assistant director-in-charge, commented:
"As alleged, Montroll committed a serious crime when he lied to the SEC during sworn testimony. In an attempt to cover up the results of a hack that exploited weaknesses in the programming code of his company, he allegedly went to great lengths to prove the balance of bitcoins available to BitFunder users in the WeExchange Wallet was sufficient to cover the money owed to investors. It's said that honesty is always the best policy – this is yet another case in which this virtue holds true."
With the anticipated plea deal set to be finalized next week, negotiations between Montroll and the SEC are expected to reach a conclusion in the next three months, if not earlier.
Jon Montroll, Bitfunder say they are close to plea agreement with US authorities -
https://financefeeds.com/jon-montroll-bitfunder-say-close-plea-agreement-us-authorities/As a result of the anticipated plea in the criminal case, negotiations with the SEC to resolve the civil case have accelerated, the defendants in a Bitcoin fraud case say.
There is an update on the US authorities’ action against Jon E. Montroll and Bitfunder, accused of operating an unregistered securities exchange and defrauding users of that exchange.
On July 18, 2018, counsel for Montroll and Bitfunder submitted a status report with the New York Southern District Court. The document, seen by FinanceFeeds, states that “the defendants’ efforts to resolve the criminal case related to this proceeding, United States v. Montroll, 18 Mag. 1372, have culminated in a plea agreement agreed upon in principle and expected to be finalized and entered by July 23”. Put otherwise, the plea is expected early next week.
As a result of the anticipated plea in the criminal case, negotiations with the Securities and Exchange Commission (SEC) to resolve the civil case have accelerated, the counsel for the defendants says. Montroll and Bitfunder currently expect to resolve the civil case by agreement as well. The parties expect it will take 2-3 months to achieve a final resolution by agreement.
Let’s recall that in February this year, the SEC charged Bitfunder, a former Bitcoin-denominated platform, and its founder – Jon Montroll, with operating an unregistered securities exchange and defrauding users of that exchange. The SEC also charged the operator with making false and misleading statements in connection with an unregistered offering of securities.
In its complaint, the SEC alleges that BitFunder was an unregistered online securities exchange and that Montroll defrauded exchange users by misappropriating their bitcoins and failing to disclose a cyberattack on BitFunder’s system that resulted in the theft of more than 6,000 bitcoins.The SEC also alleges that Montroll sold unregistered securities that purported to be investments in the exchange and misappropriated funds from that investment as well.
The SEC’s complaint charges BitFunder and Montroll with violations of the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctions and disgorgement plus interest and penalties.
In a parallel criminal case, the U.S. Attorney’s Office for the Southern District of New York filed a complaint against Montroll for perjury and obstruction of justice during the SEC’s investigation.
They got him
SEC Charges Former Bitcoin-Denominated Exchange and Operator With FraudSEC Charges Former Bitcoin-Denominated Exchange and Operator With Fraud
FOR IMMEDIATE RELEASE
2018-23
Washington D.C., Feb. 21, 2018 —
The Securities and Exchange Commission today charged a former bitcoin-denominated platform and its operator with operating an unregistered securities exchange and defrauding users of that exchange. The SEC also charged the operator with making false and misleading statements in connection with an unregistered offering of securities.
The SEC alleges that BitFunder and its founder Jon E. Montroll operated BitFunder as an unregistered online securities exchange and defrauded exchange users by misappropriating their bitcoins and failing to disclose a cyberattack on BitFunder’s system that resulted in the theft of more than 6,000 bitcoins.The SEC also alleges that Montroll sold unregistered securities that purported to be investments in the exchange and misappropriated funds from that investment as well.
“We allege that BitFunder operated unlawfully as an unregistered securities exchange. Platforms that engage in the activity of a national securities exchange, regardless of whether that activity involves digital assets, tokens, or coins, must register with the SEC or operate pursuant to an exemption. We will continue to focus on these types of platforms to protect investors and ensure compliance with the securities laws,” said Marc Berger, Director of the SEC’s New York Regional Office.
“As alleged in the complaint, Montroll defrauded exchange users by misappropriating their bitcoins and failing to disclose a cyberattack on the exchange’s system and the resulting bitcoin theft. We will continue to vigorously police conduct involving distributed ledger technology and ensure that bad actors who commit fraud in this space are held accountable,” said Lara S. Mehraban, Associate Regional Director of the SEC’s New York Regional Office.
The SEC’s complaint, filed in federal district court in Manhattan, charges BitFunder and Montroll with violations of the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctions and disgorgement plus interest and penalties.
The SEC’s investigation was conducted by Daphna A. Waxman, Daphne Downes, and Valerie A. Szczepanik in the New York Regional Office. Ms. Waxman and Ms. Szczepanik also are members of the SEC’s Distributed Ledger Working Group and the Enforcement Division’s Cyber Unit. The litigation will be led by Dugan Bliss. The case is being supervised by Lara S. Mehraban.
In a parallel criminal case, the U.S. Attorney’s Office for the Southern District of New York today filed a complaint against Montroll for perjury and obstruction of justice during the SEC’s investigation. The SEC appreciates the assistance of the U.S. Attorney’s Office and the Federal Bureau of Investigation.
###
US Gov’t Indicts Founder Of Long Defunct Crypto Exchange BitFunderThe US Securities and Exchange Commission (SEC) and Department of Justice (DOJ) have officially leveled charges against the founder of the now non-operational Bitcoin-dominated exchange BitFunder, Jon E. Montroll, Wednesday Feb. 21.
The SEC released a press statement Wednesday stating that they have charged Montroll, also known as Ukyo, with operating BitFunder as an unregistered securities exchange, defrauding the users of said exchange, and making “false and misleading statements in connection with an unregistered offering of securities.”
The SEC alleges that both BitFunder and its founder Montroll defrauded exchange users by “misappropriating their bitcoins”, operated as an unregistered securities exchange, and failed to disclose a cyberattack which led to the loss of over 6,000 bitcoins.
In 2013, hackers exploited a weakness in BitFunder’s programming code to falsely credit themselves with over 6,000 bitcoins. In an effort to recuse himself of the responsibility of having lost what was then about $720,000, today worth over $60 mln, Montroll denied the success of the hackers, and additionally provided false balance statements to SEC investigators.
The formal complaint filed by the SEC charges Montroll with violations of the anti-fraud and registration provisions of US federal securities laws. According to the press release, ”[t]he complaint seeks permanent injunctions and disgorgement plus interest and penalties.”
The DOJ also announced today Feb. 21, that Montroll has been arrested and taken into custody by the federal government. The DOJ has charged Montroll with two counts of perjury and one count of obstruction of justice. The counts of perjury and obstruction carry maximum sentences of 5 and 20 years, respectively.
Investor protection remains a priority concern for the federal government in these proceedings. Marc Berger, Director of the SEC’s New York Regional Office stated:
“...Platforms that engage in the activity of a national securities exchange, regardless of whether that activity involves digital assets, tokens, or coins, must register with the SEC or operate pursuant to an exemption. We will continue to focus on these types of platforms to protect investors and ensure compliance with the securities laws.”
BitFunder ceased trading on Nov. 14, 2013 amid complaints about delayed and frozen withdrawals of funds, following the August hack. Adding to BitFunder’s woes from the hack, the exchange went bankrupt after, following a ban on US traders, American traders left the platform in droves.
At a senate hearing earlier this month, SEC Chairman Jay Clayton noted that, so far, every ICO-issued token the SEC has observed is likely a security under US law, regardless of how the issuer refers to or markets the token. As of December, 2017, Clayton noted that not a single ICO had registered their tokens with the SEC.
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Summary about last Updates:- Cryptocyprus (from NEO&BEE) is now dealing with the weexchange issue.
- Ukyo updated the issue on Decmber 17, you can read his post here:
https://bitcointalk.org/index.php?topic=348468.msg4006582#msg4006582- Ukyo is trying to liquidate his ActM shares to refunds a part of his debt
- Only 386 bitcoin are available, so you can withdraw up to 6% of your stucked XBT
- No ETA for when the remaining BTC will be returned and for an explanation about why all this mess started
LAST UPDATE: Ukyo claimed he wants to liquidate his ActiveMining assets to reimburse a part of his debt with weex users. Actually Ken Slaughter, the CEO of ActiveMining, holds Ukyo's Activemining shares and explained we wants to sell the shares to pays back his personal company's debt with weexchange (106btc),
then give the remaining earnings to Ukyo.. Shares are being sold for 0.0005 XBT each one, so the total earning (if they are sold) would be 100XBT, just enough to pay back the Ken's debt. So nothing will be left for other weexchange users.
Ukyo is currently working for a portal to redeem Ukyo.loans
A site to withdraw a portion of your stucked XBT is up here:
https://weexclaims.weexchange.co/main.phpCurrently you can withdraw 6% of your XBT, hopefully you will able to withdraw the rest later
The thread started from cryptocyprus is here:
https://bitcointalk.org/index.php?topic=348468.0Last cryptocyprus' post about weexchange issue (upon my and stereotype's request) is here:
https://bitcointalk.org/index.php?topic=289730.msg4664866#msg4664866----------------------------------------------------------------------------------------------------
Relevant user's posts (Most recent first):January 22, 2014, 03:40:41 PM (user's activity: 336)We are selling Ukyo shares on Crypto-Trade to recover our losses on Bitfunder.
We will start moving Investors shares to Crypto-Trade within the next 7 days.
January 22, 2014, 04:15:24 PM (user's activity: 252)I haven't touched anything from a technical standpoint, I'm not sure who Andreas A is to be honest. If it is Andreas Antonopolous then I would be surprised as he hasn't mentioned anything to me about helping Ukyo. I am trying in my spare time (of which I have very little of) to give Ukyo a helping hand with achieving a workable solution, to ensure he can pay everyone back and once complete he can pay me back.
January 22, 2014, 03:13:27 PM (user's activity: 252)
Helping Ukyo out is something that I am doing in my spare time for the benefit of everyone involved and getting help from others that work here in their spare time (of which no one has available right now). I have so little time at the minute to do anything other than attend meetings for Neo & Bee and travel to meetings which dominates my life due to the fact we are launching a multitude of businesses across the coming weeks. I am still personally committed to helping resolve this issue by helping Ukyo get everyone settled.
December 13, 2013, 09:58:21 PM (user's activity: 210)As was announced earlier, most of the coins that were stored in WeExchange.co are now gone. We are still limited in what we can share about how that happened, and what is being done about it, but we do have some updates.
There are still approximately 386btc available in the wallets. These coins will be paid proportionally to all owed users, based on current user balances, by Monday night.
All old withdrawal requests will be removed and each user will need to initiate new withdrawals when this new balance is ready.
Full instructions on how to access the site to process these withdrawals will be provided by 5pm (GMT+2) on Monday 16th December, when you should be able to withdraw the portion of available funds allotted to your account.
This is far from ideal, but it gets every satoshi that is available to those with outstanding balances. When we are able, we will announce more details on what is being done to repay the remaining coins that are owed to WeExchange.co users.
December 07, 2013, 12:52:18 PM (user's activity: 196)Apologies for the slight delay in getting this information out.
Jon (Ukyo) is now here with me in Cyprus to ensure this problem is resolved for everyone involved.
The bitcoins are simply not there anymore, we are continuing to work through the implementation of a number of solutions to correct the issue. We are hoping to have one of many very important announcements before the Christmas holidays that will enable the bitcoins to be returned to those that are owed, however the run up to the holiday period may cause delays in some aspects.
The solution will take time to pay everyone in full however, there will be no preferential payments and the payments will be distributed proportionally.
A full explanation as to why the bitcoins are no longer there, will be provided as soon as we possibly can.
Neo & Bee has no exposure to the liabilities of WeExchange. The solution will enable Neo & Bee and all of those involved in Bitcoin to benefit greatly in the future.
December 02, 2013, 12:20:18 PM (user's activity: 196)From the Activemining thread (
https://109.201.133.195/index.php?topic=297503.4220;topicseen):
From Bitfunder shutdown notice:
Quote
Notwithstanding the shut-down, the site will remain available for viewing and users will be able to request records from BitFunder until at least December 15, 2013.
It seems that Bitfunder has shutdown all of ActiveMining accounts. This was expected due to my "Legal Demand For Payment" and the fact that I release the information about meeting with our lawyers.
This is also why we had a cutoff date on the transfers to AMC-TENDER"; however, I was still accepting transfers, but it was expected that Ukyo "God Of Bitfunder" would use his almighty power to shut off our accounts. So the last transaction time to AMC-TENDER is 2013-11-30 20:35:59. Any transfers after that date will be limbo, until we can get the records. This will also apply to the automatic transfers that Ukyo promised on December 2. In our law suite we will try and recover the records after the above date using discovery.
The more I read about Bitfunder the more I believe Ukyo is a scumbag scammer and I really hope getting involved with this guy won't damage the image of Neo.
If I held the same views on Ukyo, would I be getting involved? Certainly not! When people have their Bitcoin back because I stepped in to ensure this was fixed, how could that possibly reflect negatively on myself or Neo & Bee?
Its very easy to throw mud based on limited information, there is a valid reason as to why this information cannot be made public, at this moment in time, but that will change. Once it is public knowledge will all these people throwing mud be queuing up to apologize, I highly doubt it.
I have also made it known that anyone pursuing legal action should contact me personally or through their legal representative, if they want to save themselves a lot of time, effort and money.
...
Bitfunder/WeExchange Problems:
We have ~106 BTC in the Bitfunder/WeExchange system which we can not obtain. We have sent Bitfunder's/WeExchange's Ukyo a Legal Demand For Payment within 72 hours. We expect this problem to result in the loss of the 106 BTC. We are meeting with our Lawyers to determine what our next steps will be. This 106 BTC has been deducted from our liquid cash position above.
...
November 27, 2013, at 11:40:11 AM (user's activity: 196)November 27, 2013, at 08:17:30 AM (user's activity: 196)Hello everyone,
I know everyone here is waiting for "the big announcement".
I have been brought in by Jon (Ukyo) to help with the situation. For those who do not know me, I am Danny Brewster of Neo & Bee (
https://bitcointalk.org/index.php?topic=289730.0;topicseen) Neo & Bee has agreed to take an active role in ensuring this situation gets resolved.
I have a full understanding of the situation and have agreed to work with Jon to help sort out the problem in the best and quickest manner possible. At this point in time it is no longer possible to be immediately able to pay out all users. Jon has been working to ensure that a process is in place to remedy this situation and to ensure that all users get the bitcoins owed to them. This is the unfortunate reality of the situation. The biggest question is going to be “why or how has this happened?” I will be providing the answer in full, however right now it is impossible for what I would describe as legal reasons, but the answers are coming, that I promise, but cannot give an exact time as to when this information can be made public.
To this end, we would like to ask that everyone continues to be patient while the final preparations are put in place that will allow for users to enable recovery of their funds, the holidays in the United States are not helping with this specific matter in the slightest.
Everyone at Neo & Bee are now involved in this resolution process.
Unlike other situations where an inability to payout bitcoins to users has occurred, Jon has been fully committed to ensuring that payouts will happen. He has not gone into hiding and continues to try to make himself available to people on IRC on a fairly consistent basis. You have trusted Jon with your bitcoins and as of right now, you are being told that there is no immediate solution. At this point, Jon has two options: first he can continue to work with the community to ensure that the issue is resolved properly, or he can throw his hands up and simply say "sorry, there’s nothing I can do". I prefer option one as I think many of you will as well, so that is why I am throwing myself and my team behind this effort to ensure solutions are implemented and successful.
I know both myself and Jon would like to be able to post everything out in the open to give a full explanation about everything that has brought everyone into this position and what is currently going on to resolve this issue. I understand that this is not the optimal solution for any one person, however we believe that it is the best solution for everyone.
You can have my word that everything conceivably possible, to resolve these problems are being done to the best of our abilities.
I would like to thank you for your understanding and cooperation so far and we look forward to having this situation resolved as soon as possible.
]
(user's activity: 175)In an IRC conversation between me and Graet, playing proxy between myself and Ukyo, I was told that Ukyo would make a statement to either myself personally or to the public today. Based on the nature of that conversation I fully expect Ukyo to follow through and provide a statement of some form. Sadly, I have no insight into what said statement may include.
KrimsonKla
November 22, 2013, at 08:38:22 PM (user's activity: 175)"There is some light in the tunnel"
<Ukto> he
<Ukto> he
<Ukto> ... "heh"
<nsa_> hehe?
<Syloq> Ukto, hide, quick.
<nsa_> the "mob" is going to start a witchhunt soon.. what is the status?
<Ukto> i have brought in some other people to help with the situation
<Ukto> and work towards the fastest resolution.
<blastbob> Sounds good
<nsa_> what is the actual problem with bitcoind?
<Ukto> I am hoping to post some sort of update tonight if possible, but probably a real update Monday/Tuesday when everything can be put together at once
<Ukto> the world.
<Ukto> it was decided to stop handing out small bits of information causing misinformation
<Ukto> until we can give a full an accurate explanation
<the20year1> yay
<Ukto> so please work with me on this for the moment.
<Ukto> I am not dissapearing, and have no intentions to
<Ukto> I have just been very very busy lately trying to work on everything being pushed on me
<Ukto> but, i have to get back to the current crap
<Ukto> i'll be back around a bit later
<the20year1> joy
<Ukto> wish i had better news
<Ukto> but there is some light in the tunnel
<Ukto> afk
I did catch him earlier(by skype voice). I told him he really needs to post -something-, put it that way.
For now we should sit tight. We're all in this boat and going off on one isn't going to fix anything. He knows how frustrated people are, and I can tell that the guy is super stressed (as he should be).
I do know he has plans for WeExchange as he's said here, and he can't proceed with anything until this issue is resolved. There is no reason to think he's run off with the money since he's not anonymous and has everything to lose if this goes bad. I also know he's been seeking help from other devs in the Bitcoin world, which I think he's posted about previously.
This contrasts with the TradeFortress situation. Please don't confuse the two.
He's definitely trying to resolve things, but obviously I'm not exactly happy as I'm owed one of the larger sums. Even so, I do think we should give this another week or two to get sorted.
The lack of anonymity is crucial here, ukyo is not going anywhere. The important thing is resolving the situation rather than making it worse.
I have over 75 BTC waiting, which is most of my liquid funds, and I know others who have more at stake who've agreed to give this a bit more time, so I hope some of you can too.
I'm travelling now but I'll have another catch up early next week (Monday or Tuesday).
November 21, 2013, 10:49:57 AM (user's activity: 5)Yeah. I have the same. Processing, Processing, Processing....
BUT: There was one Transaction with a very small amount 2 weeks or something Processing und 3-4 days ago: Completed!
So, at least there is hope...
My Opinion: After Bitfunder closed, - WeExchange had a lot of trouble with beeing the only one Partner for Instant Exchange to BF.
November 20, 2013, 09:25:37 PM (user's activity: 5)I did have a withdraw completed in November.
I don't know if this helps or not, if I understand correctly there are still October withdraws that are not yet done and this was from early November.
Date 2013-11-03 15:55:49
Transaction ID Ug3rfwbCV0dBAxeQHVKclVMyTglDjPs6
Type Withdraw
Debit 7.03271000 BTC
Credit
Fee 0.00000000 BTC
BTC Transaction 0d0dc03db421619ebcfa85292c0478a8fcd5fc65424b2af786730ef30542fb6b
Status Completed
I have a few more withdraws that are still processing.
I know everyone here is stressed out, I can say with confidence that Ukyo is under great stress as well, regardless of his machinations.
EDIT: There was no help ticket associated with this withdraw, it just worked. I did not learn there was a withdraw problem until the next day.
November 19, 2013, 08:11:11 PM (user's activity: 238)(19:09:16) Ukto: for the record, I _am_ here. i have not dissapeared.
(19:09:23) Ukto: I am working on doing everything in my power to get everything to everyone
(19:09:26) Ukto: I am not going to dissapear
(19:09:35) Ukto: if I was going to, I would have already.
(19:09:49) Ukto: I want to get the new weexchange online. It has huge oppertunity
(19:09:53) Ukto: but i have to sort this problem first
(19:09:57) Ukto: and my time is highly limited
(19:10:30) Ukto: as soon as I have a real update for the forums I will post one.
(19:10:47) Ukto: I just have no real update at themoment except that I am here, and I am trying to make it work
Fresh from #bitfunder
I have withdrawal request from October 23rd and support ticket from the same day.
I was waiting one month and checking my BTC address balance every day.
Today I found my withdrawal canceled and this message as a response to the support ticket:
Hello,
We are having issues with bitcoind and getting it to send large amounts without taking long periods of time.
I have canceled these two withdraws, could you please resubmit them in about 20 btc amounts so we have a proper withdraw request for each transaction? Please update this ticket so I can make sure you hold your place in withdraws.
Thank You,
WeExchange Customer Service
Well, I believe I made it clear that I want withdraw the BTC.
If it was a problem to process a larger sum they could have divided it into smaller ones.
Now I have re-created withdrawals as limited to 20BTC ... and expect to have it processed in place of original withdrawal ...
Otherwise it's time to bring lawyers in.
I was convinced that Ukyo is brave and honest guy ... today I start to have doubts
November 16, 2013, 10:08:56 PM (user's activity: 10)It was a very stressful few weeks, but I finally received my Bitcoins Smiley. Thank you Ukyo.
Good luck and see you all later.
-carnivale
November 16, 2013, 09:54:42 PM (user's activity: 210)WeExchange Transaction Confirmation:
I was contacted today, 11/16/2013, at 14:19:27 by Ukyo to confirm the transaction of 19.11521709 BTC from WeExchange to address 1H9TFQM8qxzT2Wwdq5TVGDQ1UhxhXJXs7q.
https://blockchain.info/address/1H9TFQM8qxzT2Wwdq5TVGDQ1UhxhXJXs7qThe transaction completed successfully as can be seen at the Blockchain address.
Thank you.
yes, a friend of mine have been get through withdraw (1/11)
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Relevant Ukyo's posts about weexchange issue (most recent first):Jauary, 24, 2013, 05:25:35 AMRepeated cross-post from:
https://bitcointalk.org/index.php?topic=297503.msg4699685#msg4699685Ken Slaughter thinks his personal debt is more important than all other Weex users and is using his book education in Indian law to personally keep 100+ BTC worth of shares that I have been trying to sell to distribute to WeEx debtors.
He has gone as far as laugh it off with "good luck gong to belize to sue us"
I will explain it to you, a corporation has a lien on its shares for any sums owed by a shareholder, so we have a lien on your shares. You are the owner of Bitfunder and the funds where on Bitfunder. Because they where transferred to WeEx in a contract that you had with them does not relieve you of your obligation to pay us our funds. Also, 38 BTC was left on Bitfunder and I have screenshots of it being there. I did not authorize it to be transferred to WeEx.
Also from PM:
Just to give you a fair warning, there are a lot of laws in the us about disclosing customer information.
Good luck going to Belize to sue us.
I will explain it to you, a corporation has a lien on its shares for any sums owed by a shareholder, so we have a lien on your shares. You are the owner of Bitfunder and the funds where on Bitfunder. Because they where transferred to WeEx in a contract that you had with them does not relieve you of your obligation to pay us our funds. Also, 38 BTC was left on Bitfunder and I have screenshots of it being there. I did not authorize it to be transferred to WeEx.
The shares have a lien on them. You are hereby notified that if the ~100 BTC is not paid in the next 10 days, we will sell your shares to the public to satisfy your debt to the company. Should the shares not satisfy your debt to the company you will still be liable for the remaining debt. Any amouts over the debt will be disperse to you less any cost of the sale.
I appreciate your 'good luck to sue us'. That's a real show of character.
I suggest all shareholders take heed of this warning.
What is wrong with posting your history? Are you afraid of something? You seem pretty concerned if your willing to make threats over it.
Notice was given 45 days before the transfer from BitFunder to WeExchange.
The site was shutting down and it was known to you that the only method of bitcoin transfer is via WeExchange which you accepted and used.
You should have no funds left on BitFunder. Any account that was properly linked (Which would be the ActM official account) had its full balance transferred. I think everyone is well aware that only a few people who had linking issues with weex have a small stuck balance.
How is it you have an account with 38btc that is not ActM that you are linking into this?
How many more accounts exactly did you create for trading on BitFunder than the handful I know of?
I suppose I will have to do a more in depth search on all of you ip addresses, linked accounts and addresses.
Why have you not claimed or reported this stuck 38btc prior?
You have not mentioned the 6% claimed from the portal yet either and subtracted that.
In the end, your argument is that I owe you XXX btc personally.
If your argument holds up then that means you are not the only debtor.
If this was the case, as someone mentioned prior, any funds of mine would need to be proportionally distributed.
This is not a mechanics lien. You did not do work or provide services. You do not have first right to the funds.
Also I see you are not including "legal costs" of unspecified amounts into what you plan to take from any proceeds.
It sounds like no matter what, your intention it to keep 100% for your personal issues.
And just because you are CEO of a company does not mean you can abuse that authority on behalf of your own personal
problems and desires.
So to be clear, you are using your position as CEO of a company to force a sale of a shareholders shares to ensure your personal BTC losses are covered before other debtors can claim their portion when you have absolutely no evidence to show that the shareholder has directly owes you anything.
You do understand the difference between a corporation and an individual?
I hope you have this same understanding with accounting practices and funds.
WeExchange has a debt to many individuals and not just you.
Again, why the sudden rush and need to sell the shares? Why can't they just be locked worst case scenario?
You seem desperate. Why? I figure it will take you at least 2~3 more months to finish buying back ActM shares.
Why the need for threats? What is it you are so afraid of?
I bet people would love to see the complete shareholder listing as it stands. Would probably be more interesting
if ownership names could be included / proven.
Also, for a lien you must file something, somewhere with a valid reason and provide notification to the person you are filing against.
Normally, unless it is a mechanics lien, you file a lien against a person or entity.
I think you need to talk to your Belize lawyers and not whatever lawyer gave you a book quote rather than an official statutory listing.
(Personally, I would fire that lawyer and hire a new one.)
I found your link very interesting though. How about linking some documentation regarding Belize Corporate law instead?
Unless this is a confession that you are operating as a Indian entity and these are shares of an Indian entity?
You do realize that book is about Corporate laws in India... right? Your lawyer must be short on time and not taken notice.
Next time you are gasping at straws, you should check the first few chapters for relevance and stop trying to mislead people.
(For those of you who are curious, start with page 2. Definition of a company regarding the Companies Act of 1956. (India) and
the following line of "a company formed and registered under previous Company Laws in India."
I am going to go out of my way to say that you have had absolutely zero legal advice and are acting solely based on random google searches
and relying on "Well let him try something." rather than doing things properly.
I truly hope for those who have invested into ActM that you run your business better than this.
Please stop being inconsistent and show people if you actually have an understanding of the things you are talking about.
It's almost like you are purposefully misleading people.
(For anyone curious, feel free to call a US corporate lawyer for a free consultation and ask about shareholder rights and liens.)
Then again, that's US law, not Brazilian.
I response to your unofficial "notice of lien" hereby request that you post the contact information for your corporate Belize lawyers or PM it to me so I can contact them to make arrangements so this can be handled properly and officially. I will make sure that any documents are released to the public so they are fully aware of the situation.
Please keep in mind that your professional manner in handling this situation dictates how you will and ActM will be viewed going forward.
As a ActM shareholder and I am sure many others agree, if ActM is to succeed, it must act properly and not arbitrarily or expose the
company to unnecessary risks.
Stop acting so desperate and do things right.
Thank You,
Ukyo
I think there has been enough speculation now.
The short of it, is that the funds are not available for distribution.
This is fact. Reasoning behind it won't change this.
We are doing what we can to make funds available to users.
The holidays have greatly disrupted any if not all potential business activity for the past few weeks.
Right now my biggest goal is to get AM claim system up while keeping everything else moving as best as things allow in the mean time.
I will post an update as soon as the AM claim portal is ready.
Thank you for your continued patience.
-Ukyo
November 16, 2013, 11:52:13 AMHello Everyone,
I would like to say thank you to everyone for being patient and understanding during these difficult times.
All BTC stuck on WeExchange.co has been migrated to a new claim portal. You will notice your BTC balance
on the main weexchange site zero out. Withdraws via the portal will list in your weexchange.co history.
As funds become available they will be dispursed proportionally on this portal for immediate withdraw.
The first round has been dispersed and is ready. Please keep in mind that the amount and percentage
of bitcoins being released is effected by many variables as we tried to make as much available as possible.
Login details are the same as the weexchange.co site.
Below is a link to a weexchange.co claim portal.
https://weexclaims.weexchange.co/Now, many of you are still quite concerned over the situation, which given the little information released
is sadly expected. I will address what concerns I can for now.
First off, Danny:
Danny has been extremely helpful and supportive of getting things moving forward. Danny has "not" been paid
off or made any offer of early compensation for his help. In fact he made the opposite offer to take his last
after everyone else. He is the real deal when it comes to wanting to help the community and put the community
first. Several other people, some vocal and some not have also been very helpful and this has been much appreciated.
Secondly, Identification documents:
For legal reasons, and as much as we would like, we can not just purge the data. There are many many factors
behind this. The data is kept off-system. This data (and any other data) has not been compromised.
Thirdly, BitFunder remaining balances:
There are a very small number of users on BitFunder who still have balances and need to transfer out due to
WeExchange account linking and various other reasons. Users in this situation are not out of luck for the first
disbursement. As the problems are worked through on BitFunder, the remaining balances will get moved into
the new claim portal and they will be able to collect their equal distribution.
Fourth, Ukyo.Loan shares:
A portal for shares is being setup for claiming shares where users can put in redemption requests. I stopped
depositing interest payouts through BitFunder due to the problems with WeExchange. All interest owed will be
paid out and redemption requests will be honored as soon as it is possible.
Fifth, G.AsicMiner-PT:
A few weeks ago, I sent FriedCat an email and asked him to hold dividends for the AM shares being held. He still
sent that weeks dividends which I currently hold in a separate wallet apart from WeExchange. At that point
all shares were accounted for by dividend payout calculation. (The only method to track shares directly held.)
No transfers have been made since so all shares should be 100% accounted for. I spoke to FriedCat and he agreed
to hold the future dividends and will disperse them as he processes the transfers. Many users have asked to not
use their email address, or public bitcoin address, etc for the transfer and dividends. So it was decided
to use the same portal as the loan shares or a third portal for transfer management so users can decide what
bitcoin address to send the held dividends to, and what email/bitcoin address to list with FriedCat.
FriedCat will get a weekly lists of transfers and will payout the remaining held dividends he is holding.
I want to make one thing very clear. We are working very hard trying to do everything we can to ensure all
users will be able to claim a full 100% of the amount stuck. No one set out with or currently has the
intention to scam anyone. That is why we are here and doing all this. The available bitcoin issue is not due
to me spending other peoples bitcoins or accidentally deleting the wallet. It is your choice to believe it or not.
As for "getting bitcoins out of him" goes, no matter which direction you may choose to pursue, at this point
all bitcoins we have access to at this moment have been distributed. If more were available, they would be distributed.
As bitcoins become available, they will be distributed via the portal.
I have seen some people talk about meeting up with me. I think this is a great idea. Let me state however, more
details than what you are getting here will not be available and I will not be able to make any "special arrangements".
I state again, no matter what is said or done, I will not be able to "speed things up". This is something we simply
do not have control over. I do think it would be a good idea to have more community interaction though. If you are
interested, PM me on the Forums or IRC and we can try to pick a date between Christmas and New years and a place that
is easy for all in the Dallas/Fort Worth area. If you PM me here, please use the subject "DFW MEETUP" because as you
can imagine I get quite a few PMs and as much as I want to respond to them all, it is very difficult with already
limited time.
And yes, I am still in Cyprus due to an unexpected problem wth the flight and expect to be home for the holidays.
Once again, I would like to extend my deepest apologies for the situation and thank everyone for their patience and
understanding. We will continue to work towards all solutions that will help to correct for this.
Thank You,
Jon Montroll / Ukyo
This is great, Ukyo, and I appreciate that you are working hard to fix this problem. But most of us would like to know:
a)When will you finish October 23rd wihdrawals?
b)When will the rest of October be done?
c)When do you expect to fix bitcoind or migrate to a different system?
Personally, I am checking blockchain.info at least 3 times a day for my transaction, and I will post here as soon as I receive it.
a: Just a couple left. Looking ahead I am expecting to get to or through the 26th today. Possibly 28th. There were less requests these days.
b: I am hoping for Monday assuming there is no fix before. There were a larger number of withdraws on the 28th.
c: I am still really hoping to get things cleared up this weekend.
To be clear, that was a random person. The address listed was not his nor was the withdraw.
I will continue to randomly ask people to help with this.
Please keep in mind, out of thousands of users on BitFunder, very few have posted here and seem to be looking at this thread.
If any of these transactions that I do this way throughout are yours feel free to claim them or not for privacy reasons but at least state you got your withdraw.
Also, the minimal withdraw on BitFunder has been lowered to 0.00000001 so users with any balance can withdraw.
-Ukyo
November 13, 2013, 10:29:24 PMOf course no new withdraws are working.
I have stated over and over that bitcoind is in a constant state of non-use by the system because it either in startup/wallet loading mode, or locked up due to the latest transfer request.
Let me repeat again.
During startup, bitcoind does not respond to RPC calls.
Once it is up, I make a transfer. The moment I make the transfer, no matter what hardware is provided, it goes to 100% resources and fails to respond to any RPC requests, even after the transaction eventually makes it to the network.
-Ukyo
November 13, 2013, 05:58:41 PMYes, I was helping with asicminer. Divs were only delayed that one week because of FriedCat shorting the div amount and I was waiting for the rest.
I think we will be done with the 23rd today. The next few days had a lot less transactions as I mentioned before.
-Ukyo
November 12, 2013, 01:09:08 AMWeExchange is about to make a rather important and very positive announcement about the immediate future.
There is every reason to work on WeExchange.
November 11, 2013, 10:06:44 PMI have tried moving bitcoind to extremely powerful systems.
This did not make a difference.
I talked to a dev about running multiple copies of the wallet, however doing so could cause the private keys/keypool between the wallets to diverge and cause more problems.
November 10, 2013, 08:14:29 PMI actually have been doing that to get more of the smaller ones done I am skipping around a large withdraw for about 30 minutes to be able to get 4 or 5 out during the same time of the bigger withdraw. It has also been hit or miss. From what I can tell, and note that I am not a bitcoind dev and have not looked at the source, that the issue seems to be bitcoind trying to located unspent inputs to put together to send out. Although this should be a fairly easy process and fast process as I have noticed most transactions do not have more than 5 to 10 inputs. All I can think of is that it has something to do with key management of such a large volume of keys.
-Ukyo
November 10, 2013, 07:14:06 PMWe are now over halfway through Oct 23rd requests. The next couple days withdraws mostly consist of smaller transactions so I think those should go a bit quicker.
Please keep in mind, we have been getting 50 to 100 withdraw requests a day.
At 20 to 50 minutes per manual transfer it is taking a while. We also noticed that larger transactions such as 50btc end up taking about 30 minutes before seeing them advertised to the network, and around 100btc taking as much as a full hour.
The other day I attempted to just move all funds to a new wallet and waited for a bit over 3 hours and the transaction never completed to the network.
At that point I returned to manual transactions. In the mean time I am working on a new system for better load handling and a method try to import the current wallet data to it so that as soon as it is ready we will be able to speed through the remaining withdraws at that time.
At this point I can understand if you wish to open a scammer tag. This has been a very unfortunate event that really caught me off guard but I will work through
everything as fast as bitcoind will let me and continue to work on the quick/permanent fix. I will not fight it but will continue to work through things to fix them and make everything right by everyone. Though if you do open one, I ask that you update it when your withdraw does eventually show up.
Many many transactions go out every day. Many people become happy about their funds and don't bother to post here or do not even know to post here.
I again would like to remind those users who are reading this that if you get your withdraw, please post here so everyone else knows. While I understand your
privacy matters, I am sure people will also be happy to know the amounts too, esp. if you are one of the larger withdraws.
Please keep in mind that BitFunder had almost 10,000 user accounts. I am sure you could imagine the massive spike in withdraws over the last few weeks on WeExchange.
Thank you for your continued understanding and support.
-Ukyo
November 05, 2013, 12:19:53 AMNope, didn't miss that. And wasn't surprised to see it. Ukyo said there would be an announcement later today after which he would have more time to deal with weexchange issues. From the sound of it, weexchange will be sorted out properly in a few weeks but for now we just need the wallet to work again.
Let's hope much much much sooner than a few weeks..
That seems excessive...
WeExchange has many many support tickets, all being handled in order.
There are technical issues with bitcoind timing out due to maxing out excessive ram & cpu no matter how much is made available to it.
You can view your addresses by clicking 'Profile'.
You can also 'Add Address' there as well as which one is your primary address. If you need this updates, please open a ticket.
I have looked into your account, and see where you did have a stuck 70btc transaction.
Looking further I see where after fixing it, your second transaction for 70btc was stuck again and was immediately fixed while we monitored it.
Within minutes afterwards you were able to withdraw more than 70btc worth.
As I stated, there are thousands of requests to be handled currently between ID requests, multiple duplicate id requests that still take time to process, users with multiple tickets asking when their id requests will be handle, users with real support requests, and users with multiple tickets open when the real requests will be looked into, not to mention all of the support tickets on BF, and the PM's I receive here, and all the code and prep work for the upcoming updates to BF as well as id verification's that need to be completed less than 48 hours from now, as well as continuing to spend time trying to identify the issue with bitcoind.
Contacting me directly is not a good reason for me to give anyone preference over another. The more time I have to spend answering questions of 'how long' and duplicate tickets, the longer it will take to get to the actual problems.
Rewriting the whole withdraw mechanism for constant retry's is certainly a good 'patch' fix but there is no time for that right now and will be at least a week out.
All users are being handled in order. No exception as it is not fair to someone else.
Now, I am going back to focusing on handling requests.
-Ukyo
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