Bitcoin Exchange’s users are suing the peer-to-peer payments network for $460,000 after security breaches show missing funds. The system which was created by teenager Zhuo Tong was recently sold to UK competitor Intersango.
Tong sold the exchange to UK-based rival Intersango in June but a second attack was suffered within days, with the thief making off with 18,547 Bitcoins worth $90,000. The site has been offline since.
Bitcoinica assured users that the money was stolen from it, not customers, and that all withdrawal requests would be honoured. It set up a claims system but then told users that only half of their money would be returned.
With speculation swirling on forums that Tang himself was behind the hacks, the four plaintiffs have now filed a complaint in San Francisco demanding the $460,457.70 they say they are still owed.
The former exchange users allege that the defendants – Bitcoinica, Intersango and some associated individuals – “knowingly and wilfully conspired and agreed upon themselves to hinder, delay and deprive Plaintiffs of their rights with respect to the monies at issue”.
Gentlemen, please distinguish between bitcoin and Bitcoinica.
1) Bitcoin is a virtual peer-to-peer currency (and associated peer-to-peer network). It is like dollars or euros.
2) Bitcoinica is one of many bitcoin exchanges (this one is dealing desk, to be honest) allowing to buy and sell bitcoins for dollars. It is like FXCM etc
I have strong doubts whether the exchange’s clients can sue the whole peer-to-peer network instead of just Bitcoinica.