How about this:

You repay any USD-deposits, since they are all in tact.

You then re-pay what you can of the remaining BTC deposits.

You will then re-do your security, and publicly post how it will be done right from now on.

You will then re-pay the users who have deposited BTC which you can no longer repay with the incoming transaction fees, untill you have repaid everyone.

Then you will (after a year or two) start making money again. Running the operation untill then will have to be based on your hard work, and possibly investors investing into the company.

Disclosure: I am not invested in any way with any parties to this.

... as in pay 5% now or 100% later? 

Customer assets are customer assets.  It doesn't matter if they are dollars, bitcoins or bananas.  If BitFloor does not have reserves (and that was reported in OP) or any other way to make customers whole, then this is a bankruptcy case.  This exchange is operating in the U.S., there are very specific laws as to how to proceed.

Disbursing funds to some customers and not others would be a criminal act under those.

I believe a court order (injunction) should be filed to help ensure the exchange operator proceeds as prescribed by law.

[Edited, s/funds/assets/.  and added.]

Bitcoins were stolen, not cash. That cash is not Bitfloors to distribute to other customers. It's mine.

That too of course.  

Few questions:

Where your servers VPS?

Who hosted your servers?


 

Well he didn't mean that but yes a cold wallet with batch processing is another option.  I would point out that even if a hot wallet is needed, if the hot wallet wallet had say 10% of total funds then 90% of the BTC would still remain right now.  The attacker would have stolen ~2,500 BTC not 25,000.  If using a split wallet like that occassional the hot wallet can run out of funds and clients will experience a delay.

There is no single solution which meets the needs of every single service provider.  That being said having a hotwallet with 100% of the funds is simply inexcusable.   More than anything else it is sad.   Bitfloor was growing rapidly and was a great source of liquidity outside of MtGox (which is important IMHO).  It is destroyed now and honestly shtylman is better than that.

Isn't it odd that personal responsibility is always down further on the list? : )

Doesn't work that way in the U.S.

A quick search and I couldn't find the exact description about how customer funds are pooled (giving a net balance), regardless if the account had a balance of securities or cash, then disbursed.  

Here's from Canada, which is pretty much the same in the U.S.


 -- http://www.cipf.ca/Public/FAQ/Coverage/PartXII.aspx