If an account holder (or a group) were to pursue this debt through the court system they would probably get a judgement and gain access to BitFloor's funds -- and if you have funds (USD or bitcoins) in a Bitfloor account, those are Bitfloor's funds as far as what a judgement against Bitfloor would have access to.
Please stop spreading misinformation about the debt responsibilities and client holdings of BitFloor as it relates to the US legal system.
I am not a lawyer, however ....
There is no question that my account shows that my balance of bitcoins today shows "hold" and that I am being refused access to my coins.
This makes BitFloor in default of its obligation to me.
From another thread:
BF is pretty much bailing itself out by taking a forced 0% interest loan on people who have coins "on hold" there.
So... They're holding funds hostage AND reopening for business WHILE being technically bankrupt?
I don't know what can be intelligently said about that. Except that it can't possibly be legal anywhere.
When a company becomes insolvent or enters the zone of insolvency, things change -- directors and officers become fiduciaries of the corporate assets for the benefit of creditors. Each time a person withdraws funds from BitFloor, that is a disbursement to its creditors. That ability to obtain funds is not offered to all creditors equally because today I am still being denied access to my funds that have been on my account since before the September breach. I don't know in the State of NY, but in some areas that would be considered preferential transfer that could even be clawed back (up to two years worth of any payments to creditors):
- http://www.thebankruptcysite.org/resources/bankruptcy/filing-bankruptcy/the-clawback-provision-preferential-transfers.htm
Now, if several creditors who together have a big enough claim go petition to have a judge approve a wind down or get a judge to freeze BitFloor's bank funds (to halt further preferential disbursement) then it isn't shtylman who decides who gets access to their USDs and their bitcoins. BitFloor could file today for bankruptcy protection so this doesn't happen, but the same thing -- anyone with USD or BTC funds held with BitFloor would not be able to withdraw them as bankruptcy law then determines who gets paid what and when.
