Bingology - BingoBoingo's Blog

Quoting for posterity from:

We will regularly publish updates here on the number of accounts affectedAll in all we have a bit over 90,000 registered users and accounts. Due to the freeze and the subsequent distribution of the available funds, a large number of accounts have been restored to their rightfull account balance, some unfortunately remain frozen for the time being and will over time be released as and when funds become available. Here the number of accounts with a frozen balance:As of 25. March 2014:
BTC: 355 accounts
LTC: 1,563 accounts
TRC: 77 accounts
FTC: 42 accounts

Announcement

In preparation of the following, we have with immediate effect stopped the possibilities to withdraw BTC, LTC, FTC and TRC. All incoming deposits will also not be credited to the users accounts for the time being.

On 24th March 2014 we will be freezing the current BTC, LTC, TRC and FTC accounts, then perform the below distribution of the available coins and reenable deposits and withdrawals. This action will also require us to delete all open sell orders for BTC, LTC, FTC and TRC.

As you may very well be aware, we had two incidents last year that lead to a loss of a significant number of BTC, LTC, FTC, TRC. We had communicated at that time that we will be covering those losses from our income, which we have done so far. We had enough coin balances in our cold wallet to upkeep our platform and the positive cashflow enabled us to gradually refill the wallets.Unfortunately we had large fund withdrawals in the last weeks which have lead to a complete depletion of our cold wallet balance and we are now facing the option of either closing the site with significant unrecoverable losses for all or to work out a solution that allows the exchange to continue to operate and gradually pay back the losses.We have obviously chosen the later and hence are going to do the following:

• 1. We will introduce an additional balance type called "Frozen Funds". Funds in this balance type cannot be used to trade or withdraw. Those are the balances that the exchange will gradually pay back and hence transfer back to the available balance over time.
• 2. We will move all current balances for BTC, LTC, TRC and FTC to the "Frozen Balance", i.e. your balance will be set to 0.
• 3. We'll take the current available cold storage balance and distribute it based on the below described distribution logic.
• 4. Monthly we will take the net profit of the exhchange and credit back that amount distributed to the users based on the described distribution logic.

The freezing of the balances is a one-time action, it does not affect future deposits in any ways.

Distribution logic50% of the amount will be distributed top down and the other 50% will be distributed bottom up.Top down means: credit the amount from the largest account balance down to the smaller accounts Bottom up: credit the amount from the smallest account balance to the larger accounts.

Example

User 1: 5 BTC
User 2: 4 BTC
User 3: 3 BTC
User 4: 3 BTC
User 5: 3 BTC
User 6: 3 BTC
User 7: 1 BTC

Amount to distribute: 12 BTC:
Step 1: Top down distribute 6 BTC:

• User 1: Credit 5 BTC
• User 2: Credit 1 BTC, remaining frozen balance = 3 BTC

Step 2: Bottom up distribute 6 BTC:

• User 7: Credit 1 BTC
• User 6: Credit 3 BTC
• User 5: Credit 2 BTC, remaining frozen balance = 1 BTC

This approach has the advantages that

• all users will eventually receive their funds, though the timeframe depends on the monthly volume available
• new deposits and users are not penalized, thus supporting the ongoing operations of the platform
• fund withdrawals from the available funds are guaranteed, no surprises or unecessary¹ delays

We believe that this is the best way forward and hope for your support and understanding.²

And we have a catastrophic state of being. Let's consider the history that lead here. The sort of mismanagement, incompetence, and detachment from reality that leads to this most unfortunate outcome will be addressed in the next post here, on Bingo Blog.

Why this post which is basically a single, though long quote came now is... These sorts or Derpasaurii³ are rare in Bitcoin in 2014. Still, all of the Derpasaurii birthed in 2011 have yet to be slain to the last.

Raising issue with these beasts is still an utmost imperative as it seems that in spite of past highlighting, assholes still offer these fuckers a veneer of credibility.

1. Sic, so Sic; see note 2 [↩]
2. misspellings in long quote preserved in long quote [↩]
3. This term, Derpasaurii being a construction and term of art related to identifying a stupid that would be as shocking as a modern human encountering a herd of this planet's largest land animals while they are in an amorous state. [↩]

This entry was posted on Tuesday, March 25th, 2014 at 9:41 p.m. and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “The Curious Case of Vircurex: Part One (Try to imagine the instrumental theme for the Terminator playing in your head as you read)”

1. A Law Enforcement Encounter: If you ran a Bitcoin related service before the thing hit $100 you prolly ought to be somewhat concerned and/or prepared | Bingo Blog says:

   August 25, 2014 at 3:50 p.m.

   […] wiki you earned coins on an altchain. You could then take the coins to this shitty exchange called Vircurex where you could dump them for BTC. As astounding as it seems at the time when I started doing this […]

   Reply
2. A Law Enforcement Encounter: If you ran a Bitcoin related service before the thing hit $100 you prolly ought to be somewhat concerned and/or prepared « Bingology - BingoBoingo's Blog says:

   August 1, 2019 at 2:11 a.m.

   [...] wiki you earned coins on an altchain. You could then take the coins to this shitty exchange called Vircurex where you could dump them for BTC. As astounding as it seems at the time when I started doing this [...]

   Reply