NSW Non-Delivery of Purchased Bitcoins from Bitxoin

[DavidC]

David and all.. I am actually Bruce the one that you corresponded with (Norm is a middle name) acting on behalf of my son as outlined. David is going to do his utmost to assist you becoming whole
Biotxoins had the makings of success, something went wrong and as we are now seeing something has been going on behind the scene which could have a positive outcome. I will be communicating with David and can update when appropriate to do so either direct or on this forum. Lets see what the week brings and stay positive.

Thanks Bruce! To be clear, there is little to salvage of the Company BITXOIN PTY LTD. The reasons for this include embezzlement by former business partner; bank error / international wire problems / missing wire transfer amounts; coding error resulting in trading at loss; timing losses resultant of missed orders and interim movement in market prices; failure of large orders to complete. Set against the backdrop of regulatory and taxation ambiguity, the decision to cease trading the entity became unavoidable.

The site was coded to MtGox API only and when market prices diverged significantly with Gox collapse, the site had to be turned off while a new developer was brought in. Then a series of wire transfers (four in total) all went missing and then some other difficulties presented themselves all at the same time. The backend of the site was recoded from the ground up and had it had only been back online for six or seven weeks when I had to make the call to disable it due to concerns with regards to solvency.

Despite all the new competition, revenue results were decent at $30,000 to $50,000 per week without advertising and had started picking up. At peak, the site was turning over in excess of $150,000 per week, with gross margins well in excess of 20% (including trading gains). I am quite certain that the revenue target of $250,000 per week is readily achievable with a modest advertising campaign.

The business has been bought by Aureus Prime Factor Limited, registered in Hong Kong SAR and it will conduct activities in Australia via licence agreemnent with XOIN PTY LTD. The revamped version of the site will launch as soon as sufficient capital is secured to fund working capital needs. We aim to have a more transparent service and provide better coverage for risk of taking orders in excess of bitcoin supply available.
Note: that bitXoin supplied customers with 'real bitcoins' direct to their wallet as opposed to supplying 'virtual bitcoins' into a hosted online wallet (by ledger entry) as per CoinJar and iGot.

In addition to 'real bitcoins', the new service will be offering online wallet 'virtual bitcoins' for instant delivery, with customer wallet balances created via ledger entry. In line with our transparency objectives, we will be offering leveraged bitcoin wallets with 1:2 (or two thirds) leverage available for those seeking investment exposure; this using the same backend capability we use to hedge our customer order risk exposures. Finally, we will be offering credit cards (or debit cards) allowing customers to tie their online wallet to a physical card able to be used across the Visa/Mastercard merchant network and for cash withdrawal via ATMs.

I cannot help but feel that this entire thread is detrimental to the success of the forward plan for the business. In any case, despite having no legal obligation to do anything, we are working our best to ensure that bitXoin customers enjoy a net benefit after everything is fixed and back online.

[Removed by Moderator - Soliciting for investment is not permitted on this forum]

 

[Jezza90]

Email received/read.

There isn't much which can be done on our side of the fence.
I still have not had the matter heard by NCAT yet, still postponed at this point.

As "disaffected customers", apparently our only 'legal' option is to let David fix what has happened.

You see, a little while back, there were a couple of missed orders, one of which was Jeremy. Jeremy was the most vocal agrieved customer we had ever experienced and, as he overstepped the line (by involving the wife of my former business partner) and, because of this, rightly or wrongly, I placed sorting out his order at the end of the "urgent to do list". By the time I had gotten to Jeremys order, he had already filed with NCAT and this left me uncertain of the consequences; even if I filled the order what does an NCA Tribunal know about verification of bitcoin deliveries?
I had noticed a drop off in order volume and asked Jeremy to disclose any forum postings. He said there weren't any but I later discovered this.

You are right David, I become pretty aggressive when someone takes a large sum of money from me and wont respond to emails or phone calls.
Its unfortunate as we have established that everything spiraled out of control before it was able to be fixed.
I did not "involve" your former partners wife, I simply tracked down who they were and asked for an explanation because no one from your company would give me any sort of information about what was happening.
Someone had to know what was happening - and I intended to find out who knew and who was responsible.
And I did tell you I asked for legal advice on an Australian Consumer Law Forum. I have it on my phone right in front of me.

I can blame you, you can blame me.
I no longer care - And at this point it no longer matters in any real sense.

I can't pretend I have any idea about the business side of what is being described here.
It sounds good, it sounds like it will work out for the best.

I sincerely hope it does for everybody's sake.

I am basically considering the money I've "lost" as a 'forced investment' in David and his "forward business plan".

In any case. I will always be watching and waiting.

Anyone wishing to contact me via a private channel please inbox me via the forum and I will give you my personal email address.

 

[Josh]

Interesting....

 

[Josh]

A lack of communication is the reason this thread began i believe. Looking forward to seeing what happens with the new business plan.

 

[John R]

As "disaffected customers", apparently our only 'legal' option is to let David fix what has happened.

Bitxoin Pty Ltd is still not under external administration so pursuing your claim via NCAT, etc. for refund of non-delivery of product is still a legal option.

 

[DavidC]

Bitxoin Pty Ltd is still not under external administration so pursuing your claim via NCAT, etc. for refund of non-delivery of product is still a legal option.

John, legal options are fine. Practical solutions are another thing entirely. If there was sufficient working capital, the orders would have been filled. As it stands, there is no longer anything I can do within this entity in the absence of it receiving an influx of capital.

The plan to issue units to all disaffected customers is not a forced investment. If I were to make a non renouncable rights issue, that would be a forced investment. This is simply something we are doing to help.

I am an honest and open person and insist on honesty and integrity from employees and partners in all business dealings.

 

[Mateusz Nowak]

I am happy to act as a conduit for those affected if that's okay ...can look at how this would work to everyone's satisfaction. I am happy to forgo privacy issues and let everybody know who I am and have my contact details, email and mobile whilst maintaining the animosity of those affected. I could email a privacy form for each to sign so I can assist on your behalf, simply as an act of goodwill. You would have to give David permission to give me your email, so I could email a privacy form to him to enable better communication. Biotxoins had the makings of success, something went wrong and as we are now seeing something has been going on behind the scene which could have a positive outcome. , I will be communicating with David and can update when appropriate to do so either direct or on this forum. For confidentiality purposes it will not be recommended, desirable or wanted by all, to have all communication by open forum. Lets see what the week brings and stay positive.

I think this is a reasonable suggestion and I am willing to do anything within my means to ensure that all disaffected customers, myself included, are completely reimbursed for the amount which they have lost.

 

[Norm]

If anyone wants to communicate, my details are email [personal information redacted by Moderator], you can email me and I will give my mobile and you can give yours and I will call you if you like, up to you Regards Bruce

 

[Josh]

Any progress? With reimbursing or refunding the original deposits?

 

[Jordansorb]

I haven't heard or received anything else thus far. Just those emails nearly 2 weeks ago. Although David had said more information would be provided in the following week.