Bitcoin Forum

Bitcoin exchange Cryptsy may have gone full Mt Gox, refuses to pay out users

Bitcoin and altcoin exchange Cryptsy (Project Investors, Inc.) may be in a serious trouble with one report over the weekend claiming that the exchange is refusing to allow users to cash out.

A report from The Merkle goes as far as claiming that the company has “gone full Mt Gox” (a reference to failed Japanese Bitcoin exchange Mt Gox) and that customers have had their funds frozen or were locked out of their account and are unable to withdraw coins.

It’s suggested that the downfall of Cryptsy may be related to the company being involved in a GAW Miners/ Paycoin ponzi scheme, in particular that Cryptsy held a Prime Controller for Paycoin and profited from the scam; it was reported earlier this month that Cryptsy was under Federal investigation for its involvement with Paycoin, and not from one agency but several: the Securities and Exchange Commission, the Internal Revenue Service and the Criminal Investigation Division of the Internal Revenue Service.

http://siliconangle.com/blog/2015/10/19/bitcoin-exchange-cryptsy-may-have-gone-full-mt-gox-refuses-to-pay-out-customers/

What the lesson that we will learn from this ? Never store your BTC in an exchange , you get your BTC , withraw .
Also if it's true then they are probably trying to get as much money as possible : https://bitcointalk.org/index.php?topic=1212838.0

http://themerkle.com/fraud/cryptsy-withdraw-issue/