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.
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