Author Topic: Theft incident happened on bit-u.com @ DigitalOcean  (Read 11020 times)

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Offline bytemaster

Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #15 on: November 25, 2013, 02:43:03 am »
Here is the reality of the situation:

When you sent him your PTS or BTC you he gave your IOUs for that amount in an implied contract (though I doubt he had any binding legal obligations that his customers signed).
He now has a bunch of debts to pay and it honestly doesn't matter where the money comes from.
If I have a mortgage and my home is robbed I still owe the mortgage payment.   

So the way I see it is this, if he ever wants to do business again in the bitcoin space he had better pay his debts.  If he is unable to pay his debts then his only option is to file bankruptcy.   As creditors it is in your interest to settle quickly because unless he has a spare $32K laying around that a bankruptcy judge can get ahold of you will never see your payout and it may take months in court.   Also, the cost of fighting this is probably more than $32K.

And for the record, this isn't a 'bailout' it is a 'bail-in' in the latest bankster jargon.
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Offline bytemaster

Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #16 on: November 25, 2013, 02:47:09 am »
Here is how I would handle it... everyone who he owes money should make an offer on what kind of haircut they are willing to take.  Those willing to take the largest haircut voluntarily should be paid out first.   In this way he will extinguish as much debt as possible on a voluntary basis.   Then he can either pay the holdouts from his own pocket or file bankruptcy protection.

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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline emeaux

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #17 on: November 25, 2013, 03:24:23 am »
How does he know what addresses to send payments to?

Offline Entz

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #18 on: November 25, 2013, 04:54:42 am »
How does he know what addresses to send payments to?
that is a good question. I would assume that he will re-enable logins and users can withdrawl them (fee free!) to whatever account they choose.
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Offline liquiddrool

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #19 on: November 25, 2013, 06:41:13 am »
You win some, you lose some.

Offline legitnick

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #20 on: November 25, 2013, 07:30:17 am »
I had just sold some PTS before all this went down, will it be possible to get my 0.15btc back? I'm fine with getting back PTS.  >:(

Offline raspu

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #21 on: November 25, 2013, 08:54:02 am »
The ip belongs to privateinternetaccess.com. This is a VPN company that supposedly doesn't keep logs of who connected and through which IP operated. So, probably is impossible to track.
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Offline yago

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #22 on: November 25, 2013, 10:01:31 am »
If I were in the place of Silfax, I think that I would auction the exchange software somewhere on this this forum to pay some of the IOU.
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Offline fav

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #23 on: November 25, 2013, 11:55:20 am »
I wonder what VPS inputs.io used ... this could be an interesting "coincidence"
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Offline dannotestein

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #24 on: November 25, 2013, 06:41:08 pm »
It seems to me the simplest thing to do is simply to start back up the server and let people make their withdrawals. Any other "settlement" system is likely to take a long time and more likely to cause worse problems when mistakes are made in the process. Personally, I had both BTC and PTS on the exchange, but I just want to get back whatever I can and as soon as possible.
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Offline cudido

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #25 on: November 25, 2013, 08:04:56 pm »
The PTS wasn't touched, so I still have access to that, and will return it to its owners; I'm thinking most likely to make it most fair that I  convert everyone's balances to PTS, and then reimburse everyone as best I can with what's left.

Not fair and not serious.

Offline marketp2p

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #26 on: November 25, 2013, 09:53:18 pm »
@silfax: PM'd you my claim and proposed resolution, for the loss occurred to my account.  Please let me know your take on this matter.

Offline Silfax

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #27 on: November 25, 2013, 10:08:04 pm »
Update - so Digitalocean is being rather unresponsive unfortunately, and I'm doubtful about the prospect of tracing this, to my great dismay.

In terms of giving out all that we have left, I have been getting a bunch of PMs, so I'll just clarify here.

--

At the going rate of about 0.012 (on cryptsy), with all of the funds that the exchange still has, we can afford to let everyone withdraw 58% of their total balances and orders.

I'll put up the site soon (in around an hour), and give everyone around 36 hours to withdraw all of their funds, and then I will close the site again indefinitely, unless new information from DO comes to light.

In case anyone wasn't clear, you will still have BTC in your balance, but when you withdraw, it will ask you to enter a PTS address instead, and it will send you 0.012 * your BTC * 58%.

If at the end of the 36 hours the site still has some funds, I will pass that out manually to users most affected.

Offline cudido

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #28 on: November 25, 2013, 10:38:24 pm »
Noooo! You are lost BTC? Ok, withdraw all PTS and not only the 58%!!!!

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Offline Silfax

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Re: Potential Scammers: Silfax, bit-u.com, Coingrounds.com, DigitalOcean
« Reply #29 on: November 25, 2013, 11:32:24 pm »
Okay, the site is up for withdraws, and will be up until Wednesday 6am EST, 11am GMT.