Coin Citadel’s new CEO Thomas Pillsworth, took control of company in October of 2018. Coin Citadel, and new CEO was never supplied by old CEO Bill Schaefer or Counsel Vic with any financial documents, bank account statements, paperwork or records or tangible assets of any kind. More specifically online Exchange wallet information, nor private keys to any off exchange Bitcoin holdings.
This is explained on the financials page on the Coin Citadel web site and information has been up for 3 years now, (2018, 2019, 2020) in order to be fully transparent with investors.
Previous Financials listing Bitcoin
2014 - 513 Bitcoin, 2015 - 513 Bitcoin, 2016 - both 513 Bitcoin and 576 Bitcoin (separately listed) , 2017 - showing 513 and 576 Bitcoin disparity. (no explanation was ever given)
2018, 2019 list Bitcoin holdings exactly as filed by old CEO in their previous financials uploaded to OTC Markets.
Last email from old CEO Bill Schaefer dated as recently as January 4th, 2019 confirmed the number of Bitcoin in financials was correct.
In 2014, the IRS issued Notice 2014-21, 2014-16 I.R.B. 938 PDF, explaining that virtual currency is treated as property for Federal income tax purposes and providing examples of how longstanding tax principles applicable to transactions involving property apply to virtual currency.
513 Bitcoin is listed under property in financial report as per IRS rule.
The $64k listed under property which was added the same time original Bitcoin purchase was reported 513 BTC at original cost basis of around $125.00 USD. This was new managements and accountants understanding.
As Bitcoin arguably no longer falls under GAAP accounting rules
If a cryptocurrency does not meet the definition of any of the above categories, it will likely meet the definition of an intangible asset under IAS 38, ‘Intangible Assets’,
Moving forward Bitcoin holding would be moved from Property and be listed as an Intangible asset with an indefinite lifetime. Correction will be on 2020 financials.
Absent formal accounting rules, the American Institute of CPAs in December 2019 issued non-binding guidance that cryptocurrency like Bitcoin should be accounted for as intangible assets, in accordance with ASC 350 Intangibles-Goodwill, Other. The panel that wrote the guidance reasoned that cryptocurrency didn’t meet the requirements in U.S. GAAP to be considered a financial instrument or inventory, said Matthew Schell, partner at Crowe LLP and a co-chair of the group that issued the guide.
Proof of Bitcoin holdings
Bitcoin can either be bought and held on an exchange, or one could buy Bitcoin from a private individual and be held offline in a paper wallet or cold storage device.
If you keep cryptocurrency on an exchange, they are the custodians of your private keys — you’re trusting them with your keys in the same way you’d trust a bank’s vault to hold your gold.
If you bought Bitcoin from an individual for cash and sent them to your wallet address or transferred your cryptocurrency from an exchange to a non custodial wallet, you are now in control of your private keys.
If private keys are lost, the Bitcoin still exist, you still own the Bitcoin, but you will never recover them.
Issues with tracing or verifying Bitcoin holdings from 2014. 2014 was the wild west in crypto.
1.) In 2010 -2014 you could buy Bitcoin on an exchange with only an email (email could be Aliceinwonderland @ yahoo for example...as long as it worked) and a made up username. There was no AML/KYC verification. No identification was required. Proving ownership is quite a task.
2.) In 2014 there were numerous exchange hacks. If old CEO had bought Bitcoin on one of these exchanges and exchange was hacked the Bitcoin could be forever lost, and or potentially recovered in bankruptcy receivership.
3.) Loosing you private Keys
In simple words, losing the private keys of a cryptocurrency wallet means you lose all the associated data and financial assets in your wallet permanently.
Only Bill Schaefer knows the facts.
Hence current CEO of Coin Citadel has never being able to confirm or deny exact Bitcoin Holdings in any emails or phone calls with investors as proof of ownership was never transferred.
Tom has been running CCTL’s Bitcoin mining operation in Plattsburgh since its first uptime in April of 2018.
Coin Citadel has been mining Bitcoin, BCH, LTC, ZEC, ETH and numerous other crypto currencies for 3 years now. Coin Citadel, then converts a portion these mined crypto assets to USD to pay its companies expenses and mining operation electricity bills.
Coin Citadel, is a well documented operational crypto mining facility as seen in numerous interviews as posted on Press page of web site. All of these interviews were done on site in person at our Plattsburgh mining facility.
Coin Citadel does have Bitcoin holdings and other crypto currencies from its mining operation as documented on financials
Coin Citadel has no debt and can easily raise substantial capital once current to expand its mining operations. We are currently in talks with a number of Investment Banks.
Coin Citadel announced in Dec 2020 a deal with French Fintech provider 2CRSI This $6million dollar deal was for new servers to build a new data center. Deal was confirmed, and half the servers have been delivered in March 2021.
Coin Citadel also deployed a PH of Bitcoin miners from Plattsburgh to its partner site in Illinois and these are currently operational and hashing.
Building a solid future for Coin Citadel and protecting investor equity is our only mission.
Coin Citadel has an outside accountant working on Q1, Q2, Q3 and 2020 year end financials. These will be in correct OTC format and uploaded to OTC Markets by months end. Coin Citadel has had ongoing communication with OTC Markets as we are working to become current and reporting. This process was started with them as early as December 2020. Well documented.
Recent Email to OTC Markets regarding CE Label
Coin Citadel would also be remiss if it did not bring to your attention a recent $6 million dollar deal with 2CRSI that we engaged in in Dec 2020
We are an operational technology company and with the new servers it received from 2CRSI it will have over tripled its computational hash power.
This is a substantial deal between two publicly traded companies. See below press release link from 2CRSI and tweet confirm delivery of servers March 5th 2021.
We would gladly show our operations in person upon request, but we have also been documented by numerous sources since 2018. NY Times, Vice News, Full Measure and BBC Radio.
We are one of the few Bitcoin mining companies that have allowed visitors much less cameras into our mining operations, despite security concerns, In an effort to be fully transparent with shareholders.
Please also let us know anything you need from us to have CE label removed.
We are more than willing to work with you as we are building a real company with real value here for stockholders.
CEO Coin Citadel
Note: To become current and fully reporting it was also advised Coin Citadel has to clear up public concern over Bitcoin Treasury. If we don’t have possession of private keys, and can’t prove control of assets without a wallet address or exchange account, then 2020 year financials will have to be amended to reflect such until such proof is established to be approved.
Assets that are classified as indefinite lived intangible assets have to periodically go through what is referred to as an impairment test, where the organization examines the asset to determine if the stated value on the financial statements is overstated versus the marketplace. Without going into the specifics of this process, if there are business conditions or other external forces that cause management to believe that the value of the asset has dropped, an impairment must be taken.
Coin Citadel will do whatever is required to become compliant and gain current reporting status as advised by its regulatory authorities.
It is also possible the SEC can help Coin Citadel in its efforts to finally force old CEO to give proof of original Bitcoin purchases, or stock for Bitcoin deals. If any evidence exists Coin Citadel could employ a firm like Cipher Trace to track down any existing Bitcoin wallet addresses, even if only some Bitcoin of the original deals still exist, if private keys if still held, or are forever irretrievable, or otherwise lost or stolen. Yet to be proven either way.
Thomas Pillsworth, CEO of Coin Citadel has has alway felt he has a fiduciary responsibility to its shareholders to continue to list Bitcoin in holdings, as deleting them if then proven valid, would be just as injudicious.
The decision to continue to list Bitcoin in Treasury was made on the basis of good-faith judgment and due care. It is not the CEO's role to play detective whenever information, including financial data, is received in an apparently reliable manner from previous corporate officers or from OTC filings or experts such as attorneys and public accountants.
It is a presumption that in making a business decision the directors of a corporation acted on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the company.
“It ain’t what you don’t know that gets you into trouble. It's what you know for sure that just ain't so.” - Mark Twain
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