Topic: [Payout Updates] Bitcoinica site is taken offline for security investigation - page 71. (Read 156711 times)

Then what is stopping them from paying out people who didn't have positions?

  No, you got it wrong. It has nothing to do with funds injection or that repayments will be  made. It has something to do with the fact that there are leveraged bets that are not closed and that it seems ought to be liquidated somehow, and whichever way you liquidate someone will not be happy with the way it is done or with timing.

  What I mean is, generic contract law (English style) allows an injured party to recover reasonable compensation for damages, however the injured party shall make every reasonable attempt to mitigate those damages. The argument there could be that by withholding information it was made impossible for the injured party to do hedging and as such to do damage mitigation. And therefore bitcoinica by not disclosing how and when position will be liquidated theoretically puts itself into position where it needs to cover the damages so that everyone (but bitcoinica) is a winner on opened bets. This is a trivial matter that could be easily argued by bitcoinica users in NZ equivalent of small claims court or proper court for higher amounts.

The more Bitcoin moves during this silent period the more potential damages could be claimed this way, given the leverage this could be substantial. And BTW publishing anything on forums or IRC would not qualify for giving effective notice. The disclosure would need to be made either by email or on the website, most likely.

+1, I also would like to know answers.

As I understand it there won't be replies to your emails to that address. It's a database. Let's hope so anyways. For as far as we're being told it might as well be a black hole.

Would you mind adding how we can check the status of USD claims and why no one responds from the verify@ address?

Genjix: how will positions be handled? have they been liquidated? when will they be liquidated? at what price?

Yes it's done. The problem is not technical but bureaucratic. Anyway hopefully this gets resolved quickly. Don't really have much more to add right now.

The argument probably wouldn't fly because Tihan injecting funds means that they're taking action to mitigate customer losses beyond what they're required to do by law.   Commonwealth law tends to require proof of actual damages rather than opportunity cost - not easy to establish at an individual level and group litigation is difficult and costly to pursue.

We're lucky that we don't have as many greedy fucks trying to ride a bubble every time valuation goes up

Happy days for Bitcoin.

Would it be safe to assume this is pretty much done by now?


Good.

* How many customers are included in the 1st round?
* What percentage of total deposits will be returned in the first round?
* How many rounds do you expect there to be? 
* How much will be payed out per claim (e.g. 80% of BTC & USD)?
* How will it be payed out? (e.g. MtGox, Wire?)
* How and when will customers be notified?

Looking forward to finally seeing this resolved!

One bad move here is failing to disclose how exactly they will deal with open positions. This might cause quite a few legal disputes down the road, because whichever way they do it eventually someone will lose and will be able to argue that by failing to disclose method and timing of position liquidation they made it impossible for victim to mitigate the damages by hedging. If NZ law is any similar to English law, which is likely, then it is going to be quite an attack weapon.

I'm long and obviously I sincerely hope that this movement it originated precisely in these tasks

But of course NOT KILLING SHORTS

Hey, Zhou (consultation), simply liquidate at current market price! (Many big players will be liquidated, is not it?  less amount of of payments  )   green font - means machine translation into English 

I didn't even commented on the validity of his claims. It's was just to show the dude who said he didn't remember seeing it.

I have understood that at that time, the words of zhou, although sincere, were not shared by those who actually have the last word to take decisions
I think neither was known the severity of the situation

he also said that it was not decided yet, and it was unofficial information. and he didn't said that they did liquidate them yet.

Price is touching $5.5 and there are hundrets of thousands of blocked USD's in Bitcoinica reserves, that otherwise could be used. That is sick.

same here.
zhoutong just said what he would do.

but i did not see any response from intersango regarding open positions (i had a very tiny buy

Did they?  I've been following pretty closely and I don't remember seeing that..