Statement about the suspect of recent Bitcoinica hack

[zhoutong]

This is the 20k BTC I was talking about, I guess it was total. Zhou, you had 15k BTC transferred to the lawyer, what about the other 5k BTC? Surely the 5k BTC you were providing that you said wasn't connected to the theft wasn't the other 5k BTC your were talking about. If it is, this doesn't bode well for your case.

I have sent 15,000 BTC to an address provided by Patrick Murck.

He or one of his clients will later confirm the receipt of the funds and also the escrow/representation relationship.

Thanks Zhou. It is a far cry from the 40K BTC / 40K USD stolen, but it is a start. Can you please share the transaction id?

Status: 4/unconfirmed, broadcast through 8 nodes
Date: 29/07/12 19:54
To: 1FqqBZnemCrcCDbz57Nk7LHLCN42hCHXEV
Debit: -15000.00 BTC
Net amount: -15000.00 BTC
Transaction ID: b87922d693b3d3b66da385592a07147cf0b8f31f78057ebb212eb60745b58cf9

Currently I can recover at most 20,000 BTC and $140,000 from Chen Jianhai.

If AurumXchange can reimburse the laundering fees for the Mt. Gox code (about $2,320.31) then it will be even better.

AFAIK he used Blockchain's mixing service, but we don't expect the fees to be returned because it's impossible to identify the funds anyway. (Also Blockchain has offered a 0.5% bonus for those people who facilitated the laundering.)

The average price he sold at should be around $7.2, including the exchanging fees. At this price point we are short $42,000. I'll see if it's possible to get this from Chen Jianhai, but quite unlikely. I doubt the effectiveness of Chinese police as well, because he's very likely to have "Guanxi" to deal with his financial activities (which I can't decide whether legal or not). In any case, he has been acting in a very naive way and I assume he still has freedom today because of his guanxi, not technical sophistication.

I'm not sure about Bitcoinica's real solvency before the hack at the moment. The information is insufficient for me to give a definitive answer.

My 5,000 BTC is entirely separate from the hack, but it more or less covers a large part of the shortfall.

I'm trying to squeeze funds to see if I can compensate more personally, but I'm not in a very good financial condition. If NameTerrific is profitable in the future, I will be happy to contribute more personal funds to help Bitcoinica customers.

#1 - are you talking about the hacker and his wife's info or Chris Heaslip. I find it weird his credentials were in the lastpass account affiliated with Bitcoinica when he has no known affiliation. Perhaps you can shed some light on that.

#2 - you are pissed at Aurumxchange for holding your funds... we will get back to that later.

There seems to be a lot of confusion around when the code was leaked and where. Perhaps you can shed some light on the details of the leak, which are muddy to most of the people trying to get to the bottom of this. Documentation of when the leak occurred (other than the first thread post here) is what we are looking for.

That email was protected with my weakest password that I reused everywhere and even shared with some other people. I didn't have to protect that email at all because it's meant to be semi-sockpuppet anyway.

He had access to source code after genjix released it.

Chris Heaslip's Mt. Gox account was stored alongside Wendon's in the LastPass. Obviously he didn't know which one had more money so he logged in to both.

I know a lot of his personal information (especially his and his wife's bank accounts and address), and I threatened to report to police if he didn't agree to refund.

I don't know where you got all the misleading information from.

What you mean misleading, it's from YOUR post here! Mine interpretation, but the facts are yours.



The source code was leaked after the hack as far we know. No one in this forum knew about the source code prior to genjix posting it and then deleting it.
Now this hacker dude gets off easily because he sends money back? Why don't you file a police report now?

The hacker didn't steal from me. Why should I file a police report?

I'm obviously more pissed off because of AurumXchange, and people like you, rather than the hacker or Bitcoinica.

The source code is the direct cause for the hack, because the LastPass master password was not redacted.

The hack happened on July 12, and the source code was released a few days before that.

Back to the AurumXchange comment as #2 above. Here you are authorizing AurumXchange to release funds to BitInstant's lawyer. It seems to me like you are admitting that the funds at AurumXchange were directly related to the hack. You originally claimed they were for a "friend" but it now appears the funds are directly linked to the latest theft. Please comment on this as it does not look well and you have basically admitted that the funds were related to the theft.

After Patrick Murck or his clients confirm the receipt of the funds, I will be working on getting the fiat part from Chen Jianhai.

It appears that he stored the vast majority of the money in his offshore bank account in Isle of Man (not Jersey, I correct myself here). It should be with Barclays International. He converted some Liberty Reserve dollars to Chinese Yuan and I can get it through Alipay, and I'll simply pay that part off with my own USD savings. (I can deal with the currency controls later. My family has 5 people, and each person can access up to US$50,000 worth of foreign exchange transactions every year.)

Also he is holding some euros due to the exchange he was using didn't have enough reserves for USD. Anyway I have access to "interbank rates" so it shouldn't be a problem as well. Considering the rising EUR/USD the USD value can be a little bit more.

I assure that I won't keep a single cent from any funds transferred to me. Also I authorize AurumXchange to send the funds directly to Patrick Murck (after he provides the bank account details) so that there will be less hassle in handling large amounts of fiat money.

Perhaps I am interpreting this all wrong. Please Zhou if you are innocent, explain the above discrepancies.

Chris Heaslip was a nominee accountant of Core Credit and Bitcoinica Consultancy in New Zealand. His verified Mt. Gox account was stored in LastPass. I didn't add it, but I believed that Bitcoinica wanted to have a personal account and a corporate account for use in Bitcoinica.

I authorize AurumXchange to transfer funds only because they might be uncomfortable to return the funds to me due to their suspicion. I never admit the funds are stolen. I'm just trying to reach an agreement with them that even IF the funds are stolen, they are still doing the right thing. And there's nothing wrong for them to send the funds to Bitcoinica either, if I'm proven to be innocent, because of my explicit authorization. This case, they don't have to hold the funds forever and the liquidity of both parties can be restored.

I'm on my iPad so it's very difficult to find the source code thing. It started with a paste bin and also a Reddit post.

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[vampire]

Chris Heaslip was a nominee accountant of Core Credit and Bitcoinica Consultancy in New Zealand. His verified Mt. Gox account was stored in LastPass. I didn't add it, but I believed that Bitcoinica wanted to have a personal account and a corporate account for use in Bitcoinica.

I authorize AurumXchange to transfer funds only because they might be uncomfortable to return the funds to me due to their suspicion. I never admit the funds are stolen. I'm just trying to reach an agreement with them that even IF the funds are stolen, they are still doing the right thing. And there's nothing wrong for them to send the funds to Bitcoinica either, if I'm proven to be innocent, because of my explicit authorization. This case, they don't have to hold the funds forever and the liquidity of both parties can be restored.

I'm on my iPad so it's very difficult to find the source code thing. It started with a paste bin and also a Reddit post.

* Saved for my future response *

As far as I remember aurumxchange froze the funds due to AML (?)

[zhoutong]

The Chinese police cannot be trusted, and you know that. If you don't make public all the information you have about this "chen jianhai", we will have to assume that he's just a made up person, and that you are the criminal.

You can assume anything you want. I can't satisfy you every time, sorry.

I have co-operated with all formal legal requests so far, and they all facilitate, not delay, the refunding process to Bitcoinica customers.

What benefit will you have if his information is public? Visit him in person and take a look at his relic collection? If it's not for violence I'll be surprised.

If you think I have legal obligation to reveal someone's privacy, ask your lawyer to talk to me.

My only priority right now is to refund Bitcoinica customers, which should have finished 2 months ago. Doing anything else will not help this process.

[repentance]

As far as I remember aurumxchange froze the funds due to AML (?)

As Zhou claims the frozen funds belonged to a friend on whose behalf he was selling LR, I suspect that AurumXchange might not be willing to release the funds to either Zhou or to whoever ends up handling Bitcoinica refunds.  Those funds probably aren't going anywhere until their source can be established as legitimate and their true ownership determined.

[chunglam]

The Chinese police cannot be trusted, and you know that. If you don't make public all the information you have about this "chen jianhai", we will have to assume that he's just a made up person, and that you are the criminal.

You can assume anything you want. I can't satisfy you every time, sorry.

I have co-operated with all formal legal requests so far, and they all facilitate, not delay, the refunding process to Bitcoinica customers.

What benefit will you have if his information is public? Visit him in person and take a look at his relic collection? If it's not for violence I'll be surprised.

If you think I have legal obligation to reveal someone's privacy, ask your lawyer to talk to me.

My only priority right now is to refund Bitcoinica customers, which should have finished 2 months ago. Doing anything else will not help this process.

+1, we should push Bitcoinica guys to resume the payout process. Hey ZT, thanks again for your 5000 BTC personal contribution, at least I got back about 7% of my fund.

[repentance]

+1, we should push Bitcoinica guys to resume the payout process.

They can't do that until all of the available funds are within their control - until that happens, they don't know the size of the pool from which refunds can be made and can't determine the correct percentage to refund people.

[Shuai]

The Chinese police cannot be trusted, and you know that. If you don't make public all the information you have about this "chen jianhai", we will have to assume that he's just a made up person, and that you are the criminal.

You can assume anything you want. I can't satisfy you every time, sorry.

I have co-operated with all formal legal requests so far, and they all facilitate, not delay, the refunding process to Bitcoinica customers.

What benefit will you have if his information is public? Visit him in person and take a look at his relic collection? If it's not for violence I'll be surprised.

If you think I have legal obligation to reveal someone's privacy, ask your lawyer to talk to me.

My only priority right now is to refund Bitcoinica customers, which should have finished 2 months ago. Doing anything else will not help this process.

then make it public once the refund is done. Making this information public can in no way harm you. Why are you so averse to doing it? He's a criminal, and doesn't deserve your protection. Any of the criminals involved in this should already know: returning the funds doesn't mean this is over. This isn't over until justice has been served.

[zhoutong]

As far as I remember aurumxchange froze the funds due to AML (?)

As Zhou claims the frozen funds belonged to a friend on whose behalf he was selling LR, I suspect that AurumXchange might not be willing to release the funds to either Zhou or to whoever ends up handling Bitcoinica refunds.  Those funds probably aren't going anywhere until their source can be established as legitimate and their true ownership determined.

Unfortunately, my friend (the source of legitimate LR funds) does not wish to be involved in this disaster because he is supposed to be irrelevant. He's fine with providing information to the authorities, but definitely not to the Bitcoin community after he has read this thread.

I hope everyone can understand that. We have enough threats and attacks among ourselves and no one is going to co-operate with the community in this matter.

[zhoutong]

The Chinese police cannot be trusted, and you know that. If you don't make public all the information you have about this "chen jianhai", we will have to assume that he's just a made up person, and that you are the criminal.

You can assume anything you want. I can't satisfy you every time, sorry.

I have co-operated with all formal legal requests so far, and they all facilitate, not delay, the refunding process to Bitcoinica customers.

What benefit will you have if his information is public? Visit him in person and take a look at his relic collection? If it's not for violence I'll be surprised.

If you think I have legal obligation to reveal someone's privacy, ask your lawyer to talk to me.

My only priority right now is to refund Bitcoinica customers, which should have finished 2 months ago. Doing anything else will not help this process.

then make it public once the refund is done. Making this information public can in no way harm you. Why are you so averse to doing it? He's a criminal, and doesn't deserve your protection. Any of the criminals involved in this should already know: returning the funds doesn't mean this is over. This isn't over until justice has been served.

Justice or injustice?

If you want the justice and you are harmed, you should have reported to the police already.

[repentance]

Any of the criminals involved in this should already know: returning the funds doesn't mean this is over. This isn't over until justice has been served.

Regardless of who actually committed the MtGox heist, the proceeds were laundered through AurumXchange and Liberty Reserve.  Those businesses have their own best interests to consider and aren't necessarily going to drop this just because Bitcoinica customers would be satisfied with the funds being returned.  

Unfortunately, my friend (the source of legitimate LR funds) does not wish to be involved in this disaster because he is supposed to be irrelevant. He's fine with providing information to the authorities, but definitely not to the Bitcoin community after he has read this thread.

I absolutely agree that he shouldn't be expected to provide any information to this community.  His details are only relevant for the purpose of proving the origin of the funds for the LR transactions and it's those conducting any AML investigation who need to satisfied as to the legitimacy of those funds, not this community.

[carafleur]

(...)
I can do that, provided anyone from Bitcoinica can send me the data (claims platform isn't available any more) and also the written authorization. With the authorization the fund holding parties can get the frozen funds from Mt. Gox as well.

Also I suggest you to arrange this with Patrick Murck because handling claims may have serious legal implications.

Zhou, do you know if there has been a copy/backup of submitted claims ?
Or should customers submit it once again ?
Thanks for your time

[zhoutong]

(...)
I can do that, provided anyone from Bitcoinica can send me the data (claims platform isn't available any more) and also the written authorization. With the authorization the fund holding parties can get the frozen funds from Mt. Gox as well.

Also I suggest you to arrange this with Patrick Murck because handling claims may have serious legal implications.

Zhou, do you know if there has been a copy/backup of submitted claims ?
Or should customers submit it once again ?
Thanks for your time

I wanted to do exactly that last time but I forgot to. I hope Bitcoin Consultancy can provide that information as well as funds.

[bitcoinBull]

I authorize AurumXchange to transfer funds only because they might be uncomfortable to return the funds to me due to their suspicion. I never admit the funds are stolen. I'm just trying to reach an agreement with them that even IF the funds are stolen, they are still doing the right thing. And there's nothing wrong for them to send the funds to Bitcoinica either, if I'm proven to be innocent, because of my explicit authorization. This case, they don't have to hold the funds forever and the liquidity of both parties can be restored.

You don't see anything wrong with your friend's legitimate LR funds being released to bitcoinica? Your friend would lose his $40k, not restore his liquidity.

[DarkEmi]

(...)
I can do that, provided anyone from Bitcoinica can send me the data (claims platform isn't available any more) and also the written authorization. With the authorization the fund holding parties can get the frozen funds from Mt. Gox as well.

Also I suggest you to arrange this with Patrick Murck because handling claims may have serious legal implications.

Zhou, do you know if there has been a copy/backup of submitted claims ?
Or should customers submit it once again ?
Thanks for your time

I dont see why they would have lost the claims.

But if they did, that would be another EPIC fail for the intersango team... Hopefully the data from the claims is still here

[zhoutong]

I authorize AurumXchange to transfer funds only because they might be uncomfortable to return the funds to me due to their suspicion. I never admit the funds are stolen. I'm just trying to reach an agreement with them that even IF the funds are stolen, they are still doing the right thing. And there's nothing wrong for them to send the funds to Bitcoinica either, if I'm proven to be innocent, because of my explicit authorization. This case, they don't have to hold the funds forever and the liquidity of both parties can be restored.

You don't see anything wrong with your friend's legitimate LR funds being released to bitcoinica? Your friend would lose his $40k, not restore his liquidity.

No. I would simply retain $40K from those recovered from Chen Jianhai, and convert that to Singapore Dollar and send back to my friend.

If later found out that the recoverable stolen funds exceed $140K in total, then it will be my personal liability to deal with Bitcoinica directly. In any case, AurumXchange shouldn't be holding the funds forever. $40K is only a small part of my total liability (this becomes my "liability" to Bitcoinica once I recover full amounts from Chen Jianhai), so there's no reason to not trust and co-operate with me when I can deliver my promise of the $100K and 20,000 BTC.

[IIOII]

then make it public once the refund is done. Making this information public can in no way harm you. Why are you so averse to doing it? He's a criminal, and doesn't deserve your protection. Any of the criminals involved in this should already know: returning the funds doesn't mean this is over. This isn't over until justice has been served.

+1

...so there's no reason to not trust and co-operate with me when I can deliver my promise of the $100K and 20,000 BTC.

LOL

[Phinnaeus Gage]

I'm a little behind on this thread, but does anybody remember this guy? https://bitcointalk.org/index.php?action=profile;u=673

http://binarysecurity.webs.com/index.html#about

[blueberry]

I authorize AurumXchange to transfer funds only because they might be uncomfortable to return the funds to me due to their suspicion. I never admit the funds are stolen. I'm just trying to reach an agreement with them that even IF the funds are stolen, they are still doing the right thing. And there's nothing wrong for them to send the funds to Bitcoinica either, if I'm proven to be innocent, because of my explicit authorization. This case, they don't have to hold the funds forever and the liquidity of both parties can be restored.

You don't see anything wrong with your friend's legitimate LR funds being released to bitcoinica? Your friend would lose his $40k, not restore his liquidity.

No. I would simply retain $40K from those recovered from Chen Jianhai, and convert that to Singapore Dollar and send back to my friend.

Seriously? You would send your friend stolen funds? If I were your friend I would not accept them. If an investigation took place he would become involved since the stolen funds would be traced to him. You say he is reading this thread so he should be well aware of what's going on.

[zhoutong]

I authorize AurumXchange to transfer funds only because they might be uncomfortable to return the funds to me due to their suspicion. I never admit the funds are stolen. I'm just trying to reach an agreement with them that even IF the funds are stolen, they are still doing the right thing. And there's nothing wrong for them to send the funds to Bitcoinica either, if I'm proven to be innocent, because of my explicit authorization. This case, they don't have to hold the funds forever and the liquidity of both parties can be restored.

You don't see anything wrong with your friend's legitimate LR funds being released to bitcoinica? Your friend would lose his $40k, not restore his liquidity.

No. I would simply retain $40K from those recovered from Chen Jianhai, and convert that to Singapore Dollar and send back to my friend.

Seriously? You would send your friend stolen funds? If I were your friend I would not accept them. If an investigation took place he would become involved since the stolen funds would be traced to him. You say he is reading this thread so he should be well aware of what's going on.

If there is any investigation I would respond that the originally legitimate funds of $40k (which I can show proof to police) were transferred to Bitcoinica instead.

Fiat money is not Bitcoin. Your one dollar and my one dollar are identical. A scammer sending you $0.01 by mistake shouldn't taint your entire bank account. I just have to make sure the sums are correct and Bitcoinica gets everything Chen Jianhai promised to pay back.

[ninjarobot]

I believe so. He handled this matter very professionally and I'm going to continue recovering the fiat money from the hackers.

Why the plural? Is this just a Freudian slip or are there more hackers involved besides Chen?