David Zimbeck, a well known and respected name in the world of cryptocurrency and altcoins, has issued his official statement in regards to the whole BitBay situation. Most of it resembles what we posted in our article yesterday, but some more details have been added to the story We will first quote his story and then add some notes at the bottom of this article.
BITCOIN DEV FUND MULTISIG BITHALO(funding shortly)
My BitBay addresses (showing i never sold, didnt care etc) if anything can use for bounties. bN2NGi2bF1cpcQcsxmY4daCpi2tQqW5tnS bNgmCcxPKgQQqUe6rhNtbGWowMJFCuxjZ3 bJvBcHh45A6mjfKhy8Qg9AagbWfHWB1abC bS4MGJKwN3vWCSgmsmYfXoJzS3QHPCRtcB http://imgur.com/CSINs8jhttp://imgur.com/1Yc5NQ8
The timeline of events leading up to this project are going to be listed below. To make it crystal clear that i was misled equally into a project. Then I’m going to explain what the most fungible thing to do with investors.
Any emails, chat logs, etc are available upon request. I’m willing to show the entire history in order to keep things crystal clear. However, im not interested in escalating thing and want to move on with development too. This has been interfering with work.
TIMELINE: Steven Dai approached me with a coin. He said he was following my work for over a year. Offering 100BTC and 10% of the coin.
I explained, its not my nature to run coins. However considering i had been working for free over a year it did not give up equity in Halo, it was sensible. Steve agreed to license the coin.
Long conversations with Steve I explained that i did not want it to be a pump with no tricks, fair to investors, good to my name etc.
He assured me it was not.
A few days before the ICO a was approached two others. Robert Duskes(google) aka International Rob and Ryan Wright(from California/Taipei) aka Gekko.
Considering I was only talking to Steve for weeks I was unaware there were others involved although from my perception that gave it more validity.
I was told by both of them that the coin was not going to be a scam.’ I expressed my concerns that I did not want anyone profiting off my name. The concern was over-stated many times.
They assured me, it was a serious project, they will not use my name.
They wanted to increase my fee slightly. They claimed that all 5 would split some of the BTC that would be held by BTER and use it to contribute to the project.
They said they would go into a Halo contract if I wanted them to (at this point, i was beginnging to trust them)
They said that under no circumstances would they pocket the funds, it was a “serious” project.
I claimed if they were serious, they would make a deposit on my work.
I asked that they keep my name anonymous until the funds were raised so I could PROVE that they were being legitimate.
The first betrayal came here. My name was thrown all over it (not by Steven) and I was furious. There is lots of chat logs to prove all of it.
I was upset, from convos with Steven i was only supposed to manage a dev team. Here they had me as lead dev and no mention of the license.
I asked for the login to bitcointalk, changed the OP.
So, I requested since my name was already on it, I wanted some BTC up front. Steven sent 25 BTC.
Blackcoin got upset since I was not give a chance to discuss it with them. Things were rushed, pushed on me.
I had to spend time calming them down and that interfered with my work and then the ICO started.
The rest is history, not interested in beating to death. By the time it started, I saw some things that got me very upset. Most of it, i tried to overlook and rationalize.
They were buying their own coin(with real bitcoins it appeared) most bought by Steve & his partner 30% which they gave me 10.
Steven handled all the finances
If anything I didn’t want to be a part of it anymore but it was a bit late. I decided to do whatever necessary to protect the coin. Also I made the mistake of trying to protect the others.
Bob had a group which bought for him (he didn’t put almost any of his own BTC)
His group runs quite a bit of accounts on BCT.
Anyways, alarms were going off but to make the project not implode on itself I decided to stay course and work on software. Since Steven was diligent enough to pay a deposit and he explained in depth his ties to Alibaba, I decided to stay course.
Once it funded funds were divided. Curiously 691 BTC to Bob(he claimed he would refund his group) and 191 to all the others.
They claimed they would spend this on development.
The rest is history. Phony bills were produced, which I fought tooth and nail to insist didn’t get paid. It did. Threats and extortion was a daily problem. Threats of a personal nature were made. Threats of defamation on me was made using “fake schill accounts” were made. Threats of violence were made.
Steven wanting to run a good project paid into threats because he didn’t want to see the project die. So him and his partner, lost a significant amount of Baycoins which were instantly dumped. They did not have any intention of selling theirs and felt it would be good to keep off the market once I pegged the coin.
However I begged them not to pay coins.They did anyways.
Soon, accounts started appearing on BCT making harassment threats, posting personal information about me, discussing my personal life, insults to any degree.
Most annoyingly the extortion threat was acted on and they started trying to shift blame away from the guilty party (who had no intention of developing. At all)
They made a atte
mpts to put my name on the project.
This was by far, the lowest, most subhuman thing Ive ever seen. And not to mention I was being polite, responding to questions and not stooping to the level of insulting others.
Bob/Ryan pretended not to know what I got paid. They used it as an attempt to extort from Steven.
Then I convinced the other two partners to ask Bob and Ryan to leave.
An FAQ was made where i was only asked to fill out tech aspects of it. The rest was filled out by Ryan and it was total bullshit.
I was already so unhappy with this project there was nothing for me to do but peg the coin and protect investors.
Another extortion attempt was made. They wanted to be paid to leave. They threw tantrums, threatened to hurt my reputation and threatened my family.
I refused to listen to the threats. However, they were already acting on them from fake accounts.
Members from Bobs group came forward, supply personal information on them. Others who had been hurt by Bob came forward
They threatened BTER to pay them 100 BTC or they would release private chat logs.
They kept the BTC, and Bob never paid his team.
Anyways, moving forward. What were the numbers. What’s the future for investors?
How much was raised in BTC that remains? Only about 1455 BTC raised from investors. Why?
Because Bobs group paid 500 at least (lets say its 15-30 members) And the remainder came from other.
30% bought by Steven & his partner. They split that was in BitBay. However they paid some of it out of extortion attempts. They paid some BTC out of pocket for extortion.
So I’m now the only one with 10% (I gave .9 to my marketing partner)
So from the 191 that both Bob and Ryan leave with, and the 500 + 50 from the dev fund + extortion paid to them by Steven.
They made off with at least 1000 BTC. They also sold most of their Baycoins since they also trade and we are thinking those have been absorbed.
A paid FUD campaign was launched to confuse people, posting fake twitters, lots of insults personal info etc.
Most of his group has his personal info. All of their info was passed to others privately, my contacts are now watching them carefully.
So I’m trying to pick up the pieces do damage control. We can ask the community if they want to do a 1:1 exchange for a new Baycoin to put this behind us.
I’ve convinced Steven to set up at least 100 BTC for the dev fund. He and his partner have agreed to pay even if out of pocket to salvage the project.
I’m going to post that address here. It will fund shortly this will be updated with screenshots of my Bitbay on BTER(proof that I haven’t sold), the addresses i hold of the exchange etc.
It was insanely difficult to get more developers(other than the 3 trainees I had before I started) while they wanted me to slave away and hit a dev schedule. Almost impossible working conditions seeing all of this go on.
So the new schedule I will set. There is a new Bitbay thread. They changed the passwords to the old site and thread. They control at least 3 threads for their fake accounts. (If you will notice, most of them are NEW accounts)
So, that means, from now on, I’m going to be getting my partners from Halo to help me hire. I’m still going to make the software agreed, am still going to Peg the coin to protect investors from any more nonsense.
SO to recap.
We pick up where we left off, continue, poll the community for a 1:1 exchange on BTER, start fresh with what we have.
At least 100 BTC in the dev fund. (from the remaining BTC from Steven and his partners share that wasn’t paid in extortion, they will pay more out of pocket) This is a good start. Its in a multisig that I share with Steve(above)
Full transparency from my end at least. Now that I’m in control, will wash away the dirt and do things the way I wished they were done to begin with.
Will honor what i was hired to do and roll out the markets and pegging.
If it even gets beyond that and this subsides we can go from there. I hope Steven is willing to be positive and patient to allow it to get further.
Thank you. For your understanding and sorry for not discussing this sooner.
I can’t speak on behalf of the two missing parties, I’m sure they will say anything to divert attention from the haul they just took. What I can assure you of is, Bob and Ryan won’t be honoring their end of the agreement and never intended to. Judge them by their actions, not the paid FUD on bitcointalk which has turned into a total waste of time and not a good place to go for serious investors. So guys, stay here on reddit and the new thread.
What is needed
We will see as far as the main site which will change, getting the source on my github, etc. And will update later. Such as updates to coinmarketcap etc. I’m hiring people. Looking for skilled developers, project managers, etc.
Notes from the author
Needless to say, this has been a shitstorm over the past few days, and it will remain like that for a while longer, even with David’s official statement. I am pleased to see development of this project will continue, and the promised goods will be delivered.
As far as the 1:1 exchange of coins is concerned, it could be a good idea but only time will tell. People do love a good comeback story though, so it might just work.
Several reputations have been tarnished because of these actions, and I’m not just talking about the BitBay name or even the people involved. BTER has destroyed their own credibility for the most part as well, and they will be facing a long road to regain face value after this.
From a media standpoint, we will keep an eye out for further announcement in regards to BitBay and its future developments. People are old and wise enough (or so they claim anyway) to make up their own minds, and we just present the information. What any individual decides to do based on that information is their own choice, and we are not responsible for ones actions.