I agree with everything that has been said so far, with the exception of the conclusion. I don't have a problem with zhoutong taking money. People putting their

I agree with everything that has been said so far, with the exception of the conclusion. I don't have a problem with zhoutong taking money. People putting their money in Bitcoin are investing in a currency that is two years old. Said another way, a currency that is younger than a $15 bottle of wine. All players in such a market by definition lack reputation, lack experience in handling currency, and lack experience in running a financial institution. Yes, zhoutong doesn't understand security and yes he is hand-waving. Yes, he needs to do his best to secure his app. Yes, he should invest money in an audit when it can afford it (if only because a security audit maps directly to better business for a financial institution). But do I feel bad for users who are putting their money into Bitcoinica? Not really. Trading in a currency that is only two years old is the NFL. Dealing with young and inexperienced financial institutions is part of the game if you chose to enter such a risky market.