[ANN] Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation

[rjk]

Tihan Seales the deal, as always.

Oh god, what a terrible pun.

[terrytibbs]

Tihan Seales the deal, as always.

Oh god, what a terrible pun.

Fuck, I knew it would turn out cheesy as hell.

[adamstgBit]

is their a estimate of the % of coins left over after all the hacking?
what have they done with the funds they still have, what do they plan to do with them?
at first it seemed like they were trying to find out who should get what, are they still trying to do that?

are these  the questions they refuse to answer?

[disclaimer201]

is their a estimate of the % of coins left over after all the hacking?
what have they done with the funds they still have, what do they plan to do with them?
at first it seemed like they were trying to find out who should get what, are they still trying to do that?

are these  the questions they refuse to answer?

Read OP post. Bitcoinica GP is doing shit for the past weeks now. They just packed their stuff and left. No word, no more refunds, nothing. One is organizing a conference in London for rich BTC holders that like to be close to banksters, and the others have "important" business trips to make to Las Vegas to play computer games with other geeks. Meanwhile in a secret room, even the work for their exchange has come to a halt.

[epetroel]

Tihan,

How does this effect the efforts by Mt Gox, AurumXChange, et al. to recover the funds from Zhou (or his mysterious friend as the case may be?)

Are you in communication with or actively working with those parties on the funds recovery?

[Vod]

Read OP post. Bitcoinica GP is doing shit for the past weeks now. They just packed their stuff and left. No word, no more refunds, nothing. One is organizing a conference in London for rich BTC holders that like to be close to banksters, and the others have "important" business trips to make to Las Vegas to play computer games with other geeks. Meanwhile in a secret room, even the work for their exchange has come to a halt.

But no doubt they took generous severance payments for themselves out of the Bitcoinica user deposits before they left.

[Transisto]

@All
The consultancy team failed and harmed a large fraction of the Bitcoin community. I ask you all to boycott all their ongoing ventures e.g. Intersango, the London Bitcoin conference, personal trades, open source projects etc.

+1

And the reason is simple, While they are doing this they aren't doing what they should be doing.

Honestly, every time I see someone asking for support about Intersango exchange I die a little inside, Being aware of the fiasco, having money stored there and then ask for support ??
(I can understand if it's a withdrawal issue)

Communicating to them about anything else than Bitcoinica resolution show a lack of support to Bitcoinica users.

Attending, speaking or benefiting in anyway from the conference organized by Amir show the same lack of respect.

[BTCurious]

I avoid Intersango and tell people to avoid it. But the conference… no, I want to go to the conference. Not for the hosts, but for the speakers, and for meeting the attendees. A large gettogether simply doesn't happen every day!

[bittenbob]

This thread is confirmation that Patrick, Donald and Amir all need to be branded as scammers. Their behavior through all of this shows that they should not be trusted with anyone's money or information from this point forward. I also think civil proceedings should begin against them with any legal investigations into their criminal responsibility taking place concurrently. They have abandoned their company with a big middle finger to all their creditors and I think it's time to take some action against them.

[mc_lovin]

Rackspace?  I thought it was Linode?

[sarpar]

I avoid Intersango and tell people to avoid it. But the conference… no, I want to go to the conference. Not for the hosts, but for the speakers, and for meeting the attendees. A large gettogether simply doesn't happen every day!

Then at least kick each of them in their little ball-sack when you see them.

[rjk]

Rackspace?  I thought it was Linode?

Linode was one hack, Rackspace was another.

[mc_lovin]

Rackspace?  I thought it was Linode?

Linode was one hack, Rackspace was another.

Wow.. They moved datacenters and everything.. Man, they should have fixed the site after the first hack, but too late now to give advice.

3 big hacks, in Canada we call that a hat-trick!  hack-trick?

[augustocroppo]

Donald Norman, Patrick Strateman and Amir Taaki accepted responsibility for Bitcoinica on April 24 as Bitcoinica Consultancy and have retained the -only- legal authority to act on behalf of the company. At this time it appears they have abandoned their legal duty.

This is the same Amir Taaki which gave a speech at 27th July 2012 in the FISL?

 

http://www.techtudo.com.br/noticias/noticia/2012/07/desenvolvedor-do-bitcoin-fala-sobre-moeda-digital-que-dispensa-taxas.html

I just read the above news few minutes ago and I am surprised.

http://softwarelivre.org/fisl13

So, while the shit hit the fan he was enjoying the beautiful south Brazilian girls and landscape?

Yeah!

[link removed]

[BTCurious]

NSFW on that last link, if your safesearch is off.

[repentance]

This thread is confirmation that Patrick, Donald and Amir all need to be branded as scammers. Their behavior through all of this shows that they should not be trusted with anyone's money or information from this point forward. I also think civil proceedings should begin against them with any legal investigations into their criminal responsibility taking place concurrently. They have abandoned their company with a big middle finger to all their creditors and I think it's time to take some action against them.

Just to add to what Tihan has said so far, a liquidator has the capacity and the obligation to report financial offences by the principals for further investigation.  Although privately appointed liquidators do tend to be less aggressive regarding things like claw back, they have exactly the same powers and responsibilities as the Official Assignee and must distribute the liquidated assets in the manner laid down by law.

[DarkEmi]

It is August 2012 and 80 days have passed since Bitcoinica was taken offline following the Rackspace hack. Many of you have followed developments since that time with interest and frustration. The company's investors and I have also been extremely disappointed.

Donald Norman, Patrick Strateman and Amir Taaki accepted responsibility for Bitcoinica on April 24 as Bitcoinica Consultancy and have retained the -only- legal authority to act on behalf of the company. At this time it appears they have abandoned their legal duty.

They now refuse to reply to communication, refuse to acknowledge their responsibility, refuse to resign voluntarily, and refuse to act. In particular they have refused to do anything to recover stolen funds, even where the required action is as simple as providing a payment address. This is now hindering the efforts of others to minimize loss to Bitcoinica's customers.

Clearly, this must end.

Acting in its capacity as creditor to Bitcoinica LP, the Wendon Group investment fund will appoint a receiver under New Zealand law. This has been an option of last resort which is now unavoidable. Under receivership, a licensed and insured specialist will replace the Consultancy as the designated authority. Upon satisfaction of secured creditor interests, the company will proceed to liquidation in which remaining funds are distributed. Without Consultancy cooperation, this is the only ready way forward.

Wendon Group intends to donate any funds it obtains via receivership in favor of Bitcoinica customers. Complete liquidation will likely take place over a matter of months.

While this is not the outcome any hoped for, it is certainly an improvement over the deadlock resulting from Donald, Patrick and Amir's untimely abandonment.

Many have suffered because of the Bitcoinica disaster. Everyone is right to be upset. Since no one in charge has seen fit to offer an apology, let it be me instead. To all those affected, I'm very sorry.


Tihan Seale

Thanks for the update !

I can not say I am happy about the bitcoinica consultancy as well.

[sarpar]

Wendon Group intends to donate any funds it obtains via receivership in favor of Bitcoinica customers.

Thank you for acting with integrity.

Please make sure the reimbursement database managed by the Bitcoin Consultancy guys is secured so the liquidator has records of verified customers and previous payouts. We really don't need another wipe at this point.

That is very gracious! - so in other words you voluntarily make your debt subordinate to the customers'? Or will you after reception of funds distribute them in your sole discretion?

Thank you again for acting so professional!

[DarkEmi]

@Tihan
Where I am from delayed filing of insolvency is a criminal act. Will you as creditor conduct a report to law enforcement for us?

There will be legal action against Consultancy members for applicable acts of civil and criminal wrongdoing.

Yeah I strongly support that.
I also think that you should attack the mysterious thief if there is any amount missing from the assets that were stolen (and he should be quite lucky that no charges are brought but at this point recovering the funds matter most to most people)

[repentance]

Or will you after reception of funds distribute them in your sole discretion?

Thank you again for acting so professional!

It sounds like Wendon is securing its interest as a secured creditor via receivership and will then donate the funds it receives to the liquidator of Bitcoinica LP for distribution according to the process laid down by law.  

Tihan, as shares in Intersango are part of Wendon's interest in Bitcoinica LP, will those be liquidated and the proceeds made available to the liquidator?

Also, are you able to shed any light on whether or not Wendon is Bitcoinica LP's only secured creditor?