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Your second to last paragraph; that is an interesting concept! Imagine if the court orders this beast to pay back the victims in Bitcoins with the exact amount

Your second to last paragraph; that is an interesting concept! Imagine if the court orders this beast to pay back the victims in Bitcoins with the exact amount of bitcoins they had lost rather than the dollar value. Since he will be paying them back in Bitcoins that have lost 75% or more of their value when he exits jail, he may still own 6-figures in "cash" worth of Bitcoins.

ams6110 11y ago
I don't think a bankruptcy court would accept settlement in bitcoins; since bankruptcy settlements are based on a share of the remaining asset value in the bankrupt entity.
michaelt 11y ago
When a limited company goes bankrupt all the company's assets are auctioned off and the resulting money is put into a big pile; and all the people the company owes money (or produce) send in evidence of how much they're owed and these liabilities are put into another big pile. The receivers, who are hired to administer this process, take their pay straight off the top of the money pile. The remaining money pile is divided up among the creditors, depending on how much they've shown they're owed. There isn't enough money to go around (if there was, the company wouldn't be bankrupt) so everyone gets less than they're owed. When this process is complete the company is gone, and nobody owes anyone anything. This is what "limited liability" means - none of the investors or owners of the company is liable for anything beyond their initial investment. So if you sold the company a $1000 widget and gave them 90 days to pay, and they go bankrupt in those 90 days, you might only get $10 or $100 back from the receivers. Just because someone has lost $1000 worth of bitcoins, doesn't mean they'll ever see them again or anyone is legally liable to pay them back - in cash or in bitcoins.
- knodi123 11y ago
  Thanks, now I know what "going into receivership" means. This was very clear and informative.
- Lawtonfogle 11y ago
  Could you go and say 'that is my widget' as the sale wasn't complete (assuming the widget was something tangible that could be returned)?

ams6110 11y ago

I don't think a bankruptcy court would accept settlement in bitcoins; since bankruptcy settlements are based on a share of the remaining asset value in the bankrupt entity.

michaelt 11y ago

When a limited company goes bankrupt all the company's assets are auctioned off and the resulting money is put into a big pile; and all the people the company owes money (or produce) send in evidence of how much they're owed and these liabilities are put into another big pile. The receivers, who are hired to administer this process, take their pay straight off the top of the money pile. The remaining money pile is divided up among the creditors, depending on how much they've shown they're owed. There isn't enough money to go around (if there was, the company wouldn't be bankrupt) so everyone gets less than they're owed. When this process is complete the company is gone, and nobody owes anyone anything. This is what "limited liability" means - none of the investors or owners of the company is liable for anything beyond their initial investment. So if you sold the company a $1000 widget and gave them 90 days to pay, and they go bankrupt in those 90 days, you might only get $10 or $100 back from the receivers. Just because someone has lost $1000 worth of bitcoins, doesn't mean they'll ever see them again or anyone is legally liable to pay them back - in cash or in bitcoins.

knodi123 11y ago
Thanks, now I know what "going into receivership" means. This was very clear and informative.
Lawtonfogle 11y ago
Could you go and say 'that is my widget' as the sale wasn't complete (assuming the widget was something tangible that could be returned)?