A warning to anyone who was considering using Bitlio for purchasing bitcoins - Bitlio is probably a SCAM!!
Bitlio has been created by the same people who created Igot - https://www.bitlio.com
Igot customers, including myself, have not been able to withdraw their bitcoins since 2015. Igot has now transformed into Bitlio.
I've outlined a few points below which I believe are clear reasons why purchasing bitcoins through Bitlio.com may lead to you never seeing your bitcoins again:
igot.com was an online marketplace for buying/selling bitcoins established in 2013
igot.com appeared to be based in Australia though targeted customers in numerous countries
A large number of investors used igot.com to purchase bitcoins between 2013-2015, particularly customers from Australia and India
igot.com appeared to become insolvent in late 2015 and the founder, Rick Day, disappeared with 1000's of investors bitcoins
Numerous articles about the apparent igot.com scam have been published and can easily found with a quick Google search for "igot scam". For example, here is an article published by the Australian Broadcasting Corporation in 2016 - http://www.abc.net.au/news/2016-04-11/australian-bitcoin-exchange-igot-on-verge-of-collapse/7315894
igot.com is now trading as bitlio.com as a continued attempt to scam more innocent customers
if you buy bitcoins on bitlio you may never see them again
Furthermore, Bitlio has recently announced that they are offering Igot account holders the opportunity to redeem their losses through converting their bitcoins balance to IGX tokens, which are pegged at 1USD. These IGX tokens will then be made available, at some time which is not clear, for conversion into BTC or FIAT currency. See here - https://help.bitlio.com/hc/en-us/sections/115002197808-igot-Balance-Redemption-IGX-Tokens.
While on face value it does appear that Igot/Bitlio is attempting to right their wrongs of the past, and return what is owed to their customers, it's possible that may not be the case. If Igot customers agree to the IGX redemption scheme, they will receive a number of IGX that correspond to the dollar value of bitcoin at the time the bitcoin was purchased. Given that most customers would have purchased their bitcoin before the end of 2015 (when it was trading at ~360USD), this will not be considered acceptable by most. In addition, if one reads through the fine print of the Terms and Conditions for Bitlio, which you are required to agree to if you would like to convert your Igot balance to IGX tokens, you will see that it prevents you from joining a class action against Igot/Bitlio. Given the current increase in the price of bitcoin, it is likely that many customers will be motivated to pursue what are now even greater losses. Perhaps, by assembling together and pursuing a class action lawsuit against Igot. This is an interesting addition, since this clause did not appear in Igot's T&Cs.
A class action against Igot would likely require a number of individuals banding together to lobby a large law firm with expertise in such matters to take on the case. Given the current environment surrounding bitcoin in Australia, I believe it is the perfect time to approach a law firm to take on this case for two reasons. Firstly, on 1st July 2017 the Australian Government will pass legislation that recognises bitcoin as a legal form of currency - whereas previously it was considered a good and was subjected to tax (goods and services tax).
Therefore, from a legal perspective, what was previously considered a case of a stolen obscure product is now clearly a case of stolen money. Secondly, the recent rise in the price of bitcoin may provide incentive for large law firms to pursue this case, as there is a significant sum of money at stake. How much exactly is something that remains unclear in this matter, but I would estimate it to be millions of dollars.
-bitjam