BitBet receivership second progress report

State of the receivership process

As BitBet’s receiver I am pleased to present this second progress report to all the interested parties. The next progress report will be published after the auction is completed, it will list the final payout amounts and beneficiaries for public review.

Auctioneering of the assets

As of today, the highest bid for the BitBet assets (other than the cash) is 9 BTC, by Stanislav Datskovskiy, aka asciilifeform.

The Twitter account will be included in the package, there is an API access key in the code, control over the domain will also allow the buyer to reset the account password.

BitBet’s hosting is currently provided graciously by Matic Kočevar. The buyer is expected to provide his own hosting setup. I will setup and provide the necessary infrastructure in the interim to keep BitBet online, should Matic Kočevar request so.

In the interest of maximizing BitBet’s assets, the bidding deadline will be extended if necessary. The precise deadline will be the end of Wednesday the 6th of April (as previously stated), or one hour after the last bid that improved the previous best bid by more than one full Bitcoin, whichever comes latest.

State of the assets and liabilities

Assets

My inventory of the assets has shown a discrepancy between their theoretical amount, and the amount I currently have under my control, the difference is 199.45006789 BTC. Mircea Popescu has stated he would have the numbers checked, and provide a complimentary sum, if applicable.

Liabilities

The liabilities I have certified are:

  • Receiver’s fee: 13.37 BTC
  • Bettor winnings: 331.69291390 BTC (335.04334737 BTC before 1% fee)
  • Bettor refunds for unresolved bets: 616.53072474 BTC
  • Bettor refunds for zeroconf bets on un-handled proposals: 1.99978000 BTC

I did not certify Mircea Popescu’s claim to 17.94766149 BTC. The BitBet contract, as signed by Mircea Popescu and Matic Kočevar, explicitly states:

3.2(d) All decisions with regards to any aspect of BitBet, measures taken in regards to any aspect of BitBet operation, any actions, activities or agreements involving BitBet will require unanimous agreement of all the representatives of BitBet. Any such decision, measure, action, activity or agreement which fails to obtain unanimous agreement of all BitBet representatives is void and unenforceable.

As of today, Matic Kočevar still refuses to endorse the decision to proceed with a second payment, as per the contract the decision can therefore only be considered void, and its consequences unenforceable. As a consequence it follows that BitBet may not deduct the amount that was paid a second time from its liabilities to certain winning addresses.

16 thoughts on “BitBet receivership second progress report

  1. Daniel P. Barron

    As of today, Matic Kočevar still refuses to endorse the decision to proceed with a second payment, as per the contract the decision can therefore only be considered void, and its consequences unenforceable.

    All that should mean is future payments cannot be made twice, which is exactly why they updated the FAQ to reflect this. Prior to the double-pay event, there was no such agreement and Mircea was assumed to be in control of all funds and payments. Was he supposed to have asked for approval on all other payments? That would have been unprecidented. I respect your decision to deny this liability, but it is indeed a controversial decision.

    Reply
    1. David FRANCOIS Post author

      I am not aware of a BitBet FAQ update, could you please highlight it for me?

      Kakobrekla did indeed sign every single S.BBET report except the last one, conveying acceptance of the previous month’s actions and decisions, which could then be accounted for against BitBet.

      Reply
  2. Pete Dushenski

    Davout,

    Could you please comment on where the “line in the sand” will be drawn as to bet resolution dates, ie. the point from which future bets will be refunded and past bets honoured ? It currently appears to be unspecified by these reports and the mind churns with the possibilities. Might it be the date of the double payment ? The date the asset auction ends ? Your cat’s birthday ? Otherwise ?

    Cheers,
    Pete

    Reply
    1. solrodar

      I would suggest resolving only those bets which had already closed at the point when betting was suspended. For bets which were open at that time, BitBet violated its agreement with existing bettors by effectively closing the bets before the specified close time, for a reason unrelated to the subject of the bet.

      The specified close time is an important part of the bet agreement, since it gives an indication of how easy it will be for bettors to adjust their exposure in response to future events (http://trilema.com/2013/how-to-cancel-your-bitbet-bet/), and how likely it is that their potential winnings will be reduced by other bettors rushing in once the outcome is clearer. The close time will therefore influence how much they are willing to bet, and any change to the close time (for a reason unrelated to the subject of the bet) is a material change to the specification. The bets should therefore be cancelled.

      Reply
    2. David FRANCOIS Post author

      Yes, I did not explicitly state it even though I should have. The cutoff I used is the end of April 10th, which does indeed happen to be my cat’s birthday. See my answer to hanbot.

      Reply
  3. znort987
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    Hash: SHA512
    
    
    At this time of blockheight 406050, I bid 15.0 BTC on davout's BitBet auction, namely:
    
        - The source code for the bitbet website
        - Ownership of the bitbet.us domain name
        - The user and bet database
        - The twitter account
    
    Although this is not a requirement, and assuming he has kept a copy, I would also appreciate
    if Matic could, as a matter of courtesy, provide the complete logs for the site.
    
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    Reply
  4. Pingback: BitBet auction deadline postponed (slightly) | fr.anco.is

  5. Erik Smith
    -----BEGIN PGP SIGNED MESSAGE-----
    Hash: SHA512
    
    At this time of blockheight 406065, I bid 20.0 BTC on davout's BitBet auction.
    
    Since I bid on behalf of a group of people that wants to run the site, my bet 
    is on all the assets and all the liabilities. The main idea is that, after 
    a check of the ongoing bets, we will pay the current and future winners.
    
    Please let us know if this is feasible.
    
    Best,
    
    Erik Smith
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    Reply
    1. Gord

      All past, present and future bets need to be paid and wiped clean. If you buy the assets you are free to start the site anew.

      Reply
  6. Bob

    That’s ridiculous. I bid 800 btc for the assets and liabilities.

    I will keep the 900 btc assets and throw out the liabilities.

    Reply
  7. punkman

    >> Since I bid on behalf of a group of people that wants to run the site, my bet is on all the assets and all the liabilities. The main idea is that, after a check of the ongoing bets, we will pay the current and future winners.

    A relevant thread from #trilema: http://btcbase.org/log/2016-04-05#1446165

    If continuity is indeed possible, I’d be interested in bidding. But considering mircea_popescu shot down the idea and deadline’s in a couple hours, I cannot bid at this moment.

    Reply

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