Statement about the suspect of recent Bitcoinica hack

[rjk]

This is what I don't get. If "Chen" admitted guilt and agreed to pay up, why does there even need to be seperate transactions? Surely one transaction equalling the total amount is all that's required? Is this yet another delaying tactic by Zhou or a means of keeping the dogs at bay ("dont kill me now, I can get the rest of the money")?

Has to cash out all his pirate bonds first!

[Yankee (BitInstant)]

Dude, instead of lashing out and requesting information in bold lettering. Have you even emailed or called Patrick to ask him?

Hi Charlie, I'm not lashing out at anyone except for perhaps Zhou. I think it is much better that Patrick posts here himself rather than me asking for a private response then posting it here. Others could accuse me of making it up or even mis-quoting. The words are much better from the legally-qualified horses mouth.

I can assure you that neither one of us needs the headache, the personal time invested, nor the lawyer bills we are getting regarding this issue, not to mention have our company's name dragged through this circus. Please be considerate to that fact.

Roberto, while I appreciate the sentiment and believe that you have acted admirably, what you describe is an inevitable and repetitive consequence of operating a bitcoin exchange. Your profit margin is the reason that you are involved with bitcoin and thus bear responsibility to persue the criminals who use you. It has no doubt been a stressful time, but it was your choice to enter the market and take on that responsibility. Please don't take this as an insult, because it isn't. I'm just stating the fact of the matter. Gotta take the rough with the smooth.

So far Zhou has managed to transfer 15k BTC out of 20k BTC and 140k USD promised.

This is what I don't get. If "Chen" admitted guilt and agreed to pay up, why does there even need to be seperate transactions? Surely one transaction equalling the total amount is all that's required? Is this yet another delaying tactic by Zhou or a means of keeping the dogs at bay ("dont kill me now, I can get the rest of the money")?


BB.

Hey,

Sorry if I seemed agressive as well, the amount of trolling that goes on here, it's hard to differentiate.

1- Your 100% correct. Patrick has been gathering all the details so he can answer questions like his next course of action, legal standing, wallet ownership, ect.
Him and I have a call in exactly 3 minutes from now to discuss it, and he will make a forum/blog post about it in a little bit.

2- Of course we are looking out for our profit margins. However, everything we do is for the greater of Bitcoin. In order for our businesses to succeed Bitcoin needs to succeed and we use our Businesses as front line fighters for Bitcoin. If we have a legal team, than we will use it for the greater good of Bitcoin. MtGox, AurumXChange, Bitinstant and other companies pay salaries to put food on the table of it's team members and their families. This is survival for us.

-Charlie

[dancingnancy]

I trust you guys, but are acting extremely unprofessional.  I will personally never use your service in fear of you publicly going after users in this format.  From an outsiders perspective you really look terrible.  I'm serious.  ZT looks bad, but so do you.

Let me make this absolutely clear: If you are intending to launder funds, or use our services and/or products for any kind of illegal activities, by all means, NEVER use our company, or they WILL be consequences. We are a serious company that have registrations, licenses and agreements to protect and uphold. We have been in business since 2007 (way before bitcoin even existed) and I can assure you this isn't our first rodeo. I am sure Bitinstant and MtGox, or any other reputable company will tell you the same: If you use our services for illegal activities, there will be consequences.

I understand.  You can't launder money.  OK, like every country has a law basically pertaining to this.  So what though, seriously?
So, whenever you find something SUSPICIOUS, you feel the need to publicly transcribe this information all over the internet?  I am not saying that his money cannot be scrutinized, but why does that give you the right to relay this information over the internet to the public?

I am not saying what ZT was right or wrong.  Because I honestly have no idea who is telling the truth at this point.  

[dree12]

It's clear aurumxchange likely isn't. If an investigation is actually because of money laundering, it should never have been posted publicly.

[Phinnaeus Gage]

Patrick's contact details:

website: engagelegal.com
email: patrick@engagelegal.com
tel: US 703.608.8864

The website appears to show a technical consultancy with nothing to suggest that its staff are legally qualified or licensed to practice law in the United States?

On what authority does this entity operate in a legal capacity?

Is it even a registered company?

The domain was registered in June 2011. When exactly did this outfit begin operation?

BB.

I'm glad somebody else is looking into this. I opted to not touch this with a ten-foot pole. I'm sadly taken aback as to where all this leads, let alone stems from. It has forced me to be very careful as to what I post.

~Bruno~

[Yankee (BitInstant)]

Patrick's contact details:

website: engagelegal.com
email: patrick@engagelegal.com
tel: US 703.608.8864

The website appears to show a technical consultancy with nothing to suggest that its staff are legally qualified or licensed to practice law in the United States?

On what authority does this entity operate in a legal capacity?

Is it even a registered company?

The domain was registered in June 2011. When exactly did this outfit begin operation?

BB.

I'm glad somebody else is looking into this. I opted to not touch this with a ten-foot pole. I'm sadly taken aback as to where all this leads, let alone stems from. It has forced me to be very careful as to what I post.

~Bruno~

See my response in an earlier page about this.

[vampire]

It's clear aurumxchange likely isn't. If an investigation is actually because of money laundering, it should never have been posted publicly.

And you know that for a fact? Did you even read Dominican AML law?

[aq]

Is this yet another delaying tactic by Zhou or a means of keeping the dogs at bay ("dont kill me now, I can get the rest of the money")?

Well, I think you confuse something here. The consultancy kept our funds for a few months, doing basically nothing. Then ZT stepped up and refunded some 5kBTC. Now within days he made more funds available. In my point of view, ZT is the only one that does actually pay back something. If some BitBuster was repaid from this consultancy - fine, however, for all of us still waiting, ZT seems the only one that does not hide behind some delay tactics. Hell, I think, ZT should, if he can, hack the current account of this lame consultancy, so that the funds can be repaid.

[naima53]

Perhaps it is not proper thread, but since all are active here .... I have an idea. How to do that would not have to pay the scammers? (fake claim) To reduce the unreasonable claim funds.

 Just ask them to rewrite all those who have already filled in the form of claims. (Fill out the form again.) I know it sounds silly, but believe me, it will have a very strong effect. Up to 70% of fake claims will be rejected as demanding "initial data inconsistency"

[Gyrsur]

Perhaps it is not proper thread, but since all are active here .... I have an idea. How to do that would not have to pay the scammers? (fake claim) To reduce the unreasonable claim funds.

 Just ask them to rewrite all those who have already filled in the form of claims. (Fill out the form again.) I know it sounds silly, but believe me, it will have a very strong effect. Up to 70% of fake claims will be rejected as demanding "initial data inconsistency"

it's broken...

https://claims.bitcoinica.com/

[Vod]

Well, I think you confuse something here. The consultancy kept our funds for a few months, doing basically nothing. Then ZT stepped up and refunded some 5kBTC. Now within days he made more funds available. In my point of view, ZT is the only one that does actually pay back something. If some BitBuster was repaid from this consultancy - fine, however, for all of us still waiting, ZT seems the only one that does not hide behind some delay tactics. Hell, I think, ZT should, if he can, hack the current account of this lame consultancy, so that the funds can be repaid.

I think it is you who are confused.  Ryan Zhou was the one that "hacked" into the site in the first place, stole the coins and destroyed the database.  It is because the database was destroyed that they are having a hard time paying people back.  ZT can't be praised for anything, because he alone willfully caused this mess.

[dree12]

Well, I think you confuse something here. The consultancy kept our funds for a few months, doing basically nothing. Then ZT stepped up and refunded some 5kBTC. Now within days he made more funds available. In my point of view, ZT is the only one that does actually pay back something. If some BitBuster was repaid from this consultancy - fine, however, for all of us still waiting, ZT seems the only one that does not hide behind some delay tactics. Hell, I think, ZT should, if he can, hack the current account of this lame consultancy, so that the funds can be repaid.

I think it is you who are confused.  Ryan Zhou was the one that "hacked" into the site in the first place, stole the coins and destroyed the database.  It is because the database was destroyed that they are having a hard time paying people back.  ZT can't be praised for anything, because he alone willfully caused this mess.

There is some evidence that Zhou stole the Mt. Gox funds. I will not deny that.

But there is zero evidence, and quite a bit of evidence in the contrary, that Zhou was involved in the Rackspace hack. What makes you believe that?

[rjk]

Well, I think you confuse something here. The consultancy kept our funds for a few months, doing basically nothing. Then ZT stepped up and refunded some 5kBTC. Now within days he made more funds available. In my point of view, ZT is the only one that does actually pay back something. If some BitBuster was repaid from this consultancy - fine, however, for all of us still waiting, ZT seems the only one that does not hide behind some delay tactics. Hell, I think, ZT should, if he can, hack the current account of this lame consultancy, so that the funds can be repaid.

I think it is you who are confused.  Ryan Zhou was the one that "hacked" into the site in the first place, stole the coins and destroyed the database.  It is because the database was destroyed that they are having a hard time paying people back.  ZT can't be praised for anything, because he alone willfully caused this mess.

[notme]

Well, I think you confuse something here. The consultancy kept our funds for a few months, doing basically nothing. Then ZT stepped up and refunded some 5kBTC. Now within days he made more funds available. In my point of view, ZT is the only one that does actually pay back something. If some BitBuster was repaid from this consultancy - fine, however, for all of us still waiting, ZT seems the only one that does not hide behind some delay tactics. Hell, I think, ZT should, if he can, hack the current account of this lame consultancy, so that the funds can be repaid.

I think it is you who are confused.  Ryan Zhou was the one that "hacked" into the site in the first place, stole the coins and destroyed the database.  It is because the database was destroyed that they are having a hard time paying people back.  ZT can't be praised for anything, because he alone willfully caused this mess.

There is some evidence that Zhou stole the Mt. Gox funds. I will not deny that.

But there is zero evidence, and quite a bit of evidence in the contrary, that Zhou was involved in the Rackspace hack. What makes you believe that?

Rackspace?   I thought it was Linode?

[naima53]

Perhaps it is not proper thread, but since all are active here .... I have an idea. How to do that would not have to pay the scammers? (fake claim) To reduce the unreasonable claim funds.

 Just ask them to rewrite all those who have already filled in the form of claims. (Fill out the form again.) I know it sounds silly, but believe me, it will have a very strong effect. Up to 70% of fake claims will be rejected as demanding "initial data inconsistency"

it's broken...

https://claims.bitcoinica.com/

That's it! That is why I am writing on it!

[defxor]

Rackspace?   I thought it was Linode?

~

Linode, March, 40K BTC
Rackspace, May, 18K BTC + loss of database
MtGox, July, 40K BTC + $40K

I'm sure the list is not complete.

[check_status]

From the comic book series:
周侗传奇 – "The Legend of Zhou Tong"

An unreleased/unknown volume was recently discovered:
Volume 11 剿杀盜周侗 - "Killing the Thief of Circular Stupidity"

[aq]

Well, I think you confuse something here. The consultancy kept our funds for a few months, doing basically nothing. Then ZT stepped up and refunded some 5kBTC. Now within days he made more funds available. In my point of view, ZT is the only one that does actually pay back something. If some BitBuster was repaid from this consultancy - fine, however, for all of us still waiting, ZT seems the only one that does not hide behind some delay tactics. Hell, I think, ZT should, if he can, hack the current account of this lame consultancy, so that the funds can be repaid.

I think it is you who are confused.  Ryan Zhou was the one that "hacked" into the site in the first place, stole the coins and destroyed the database.  It is because the database was destroyed that they are having a hard time paying people back.  ZT can't be praised for anything, because he alone willfully caused this mess.

But there is zero evidence, and quite a bit of evidence in the contrary, that Zhou was involved in the Rackspace hack. What makes you believe that?

Apparently there are quite a few guys, like mlawrence, out there, that would love to see the pay back fail. One should really start to wonder why that is...

[Coinoisseur]

Given the thread, I think this is a good read:

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10823341

[Vod]

Apparently there are quite a few guys, like mlawrence, out there, that would love to see the pay back fail. One should really start to wonder why that is...

That's nonsense, but wonder away if you wish!