Bitcoin Forum

Hi there I like many others of you have some coin stuck on cryptsy, after nearly 2 months of waiting to get withdrawals canceled and to watch the price of altcoins go sky high ( like 50% in some cases ) this enabled people to withdraw with a penalty. Now I did not wise up enough to do this and as it appears I have lost my coin. What legal steps can I follow to get compensation for them or do I have no legal right to anything? I live In Spain by the way.

They posted this today on the cryptsy website : Important System Notification

Phishing Attempt:: There is a phishing attempt going around prompting users to go to a cryptsy-refund website. Do not go to this website or give your login details on any website other than the official Cryptsy website. There were two avenues of the Phishing attempt. One was via SMS, using our provider Twilio and gained entry into our logs and sending ability via a weak password on that account. The passwords on this account have been secured. The other avenue was via email using the same mailing service we use (Mailgun), but was not sent using our account. It is uncertain where the email list for this Phishing attempt was attained from, as we do not show any unauthorized access to our Mailgun account nor our internal systems. We are still investigating this matter. If you were a victim of this phishing, you should log into your account at Cryptsy immediately and do the following: 1. Change your password and enable 2fa if you don’t already have it enabled. 2. Check your pending withdrawals, we currently have withdrawals disabled so if you see one that shouldn’t be there you can request to have it cancelled. Regarding other issues that have been apparent at Cryptsy for the last couple months, I will be making another post to explain what has been happening in the next couple days. BigVern UNTIL WE ARE ABLE TO DETERMINE EXTENT OF THE PHISHING ATTEMPT, ALL WITHDRAWALS WILL BE CANCELLED AND ARE PAUSED

I am happy I sold all mine coins with some lose after I had to buy some altcoins with high prices. They scammed a lot of people and never told people about the problems when they deposit on their exchange. When people complain on the chat they just ban you. They way they treat people is ridiculous really hope they once get in jail for stealing people there money.

Yeah I deposited my doge there thinking I was going to arb, of course there was no notice on the site stating the site was not fully  operational

so this trading site cryptsy is not working anymore I am looking for information about refund.

All of you should have voted for #1 and this is why everyone keeps depositing money on exchanges that just run away with it.  They're on their way out, and in another thread I predicted that they'll be offline within a month.  By March at the latest. 

Back online like nothing happened?  Who in their right mind is going to keep depositing coins???  Only suckers would do such a thing and I don't think Cryptsy could sustain themselves on suckers alone.

So if this happens who can we go to, in order to make a claim for our missing coins?

You're out of luck and there's nowhere to go.

can I still use the exchange, does it work now, or the process had already gone too far?

In my years as a member, I have seen this happen over and over with different exchanges going AWOL. The result is basically always the same. The crypto-currency is lost forever and there is no legal recourse.

know your right hope your wrong

well Im out 5 btc tried to login before christmass to find my password had been changed and my account locked have done about 7 support tickets with no response even PM horus with no response

I got chat banned on cryptsy, doesnt seem like I will be able to troll in the chatroom anytime soon. Cool down period they call it....

they now have there now blog post
http://blog.cryptsy.com/
and also a class action

when they ran into insolvency they still run the site without any notice to their customers
and they try to run the Ponzi scheme

I really don't think they can just get away with all these unethical business conduct even they file for Chapter 11

their current liabilities is about 10,000 BTC, given the current BTC value how many % of these liabilities can be recovered from their asset (if any) :'( :'(

their chat window seems off line now

same here what a scam site

Site will go offline soon, the owner will move somewhere maybe Cambodia or Netherlands and says thank you to all.
Who knows he may have been in the remote areas this time probably in the solomon islands watching the pacific and are amaze how blue it is

I really hope Big Vern and all his scamming staff all get to go somewhere nice, and I also hope they get at least 20 minutes a day to step outside and breathe fresh air. Hopefully none of the prison guards will be crypsty scam victims or else this wont be half as much as they dont imagine.

Maybe he doesnt have staff just many admin profiles

the same will happen, with cryptsy like it happened with bitstamp, no coins back, they are gone, nada, zero, they are in the hands of thief

can you name me a single complex technology the flew perfect on the first try?
There is a REASON bitcoind is v0.1 at this time.
Running an exchange still has some work to do as well.
When the technology reaches v1.0, you can rest assured. But by then you will have missed the boat and just along for the ride.

but this has more to do with the negligency of the owner, and not the technology, so i'm afraid nothing will change in the future if the people are dumb and don't care about the money of the other

i'm sure that if there were their money there they would have been more diligent and cautious

oh, pleaeaease -- the jail-thing is not the top concern, though. More importantly, they should stay out of jail as long as necessary to make good on what they owe their users!

I don't know why people still resort to Lycnh-first-think-later behaviour -- like we were still in the 16th century. There are much better ways and legal solutions to that these days -- suing them and claim punitive damages, starting a class action, etc come to mind.

I actually hope that these -- more realistic -- scenarios come to fruition here and will be pursued instead. BTW equally painful to Paul Vernon and/or any accomplices.

exactly -- this is human (mis-)bevahiour, don't blame it on "Bitcoin technology"... Also, the case is different from Bitstamp and others where "coins have gone" or are "in the hands of thieves" because at Cryptsy, user coins are in segregated accounts and showing until the site goes (went) offline as "user balance" or "account value" belonging to account holders.

These will have to be distributed 1:1 as individual user property in case of a bankruptcy, this is why a group lawsuit, bankruptcy proceedings, class action etc are needed  -- the quota fractions can only be distributed for the remaining lump sum (if any) belonging to Cryptsy's own assets to settle other creditors' claims (the landlord on whom Cryptsy moved out so suddenly and apparently without notice comes to mind here, etc).

It all depends on what kind of lawsuit there will be and if people are smart enough to drop that stupid Go-to-Jail thing long enough for the culprits to be available and forced to co-operate on the return of recoverable user assets.

There is absolutely no way they continue operating after what just got revealed; a lawsuit will most likely be filed. Honestly this is pretty extreme case of fraud and I think jailtime for the CEO of Cryptsy and other affiliates is pretty viable. I doubt you'll get any of your coins back, it's impossible. They're simply not there, they never truly were. It was a huge Ponzi scheme. It sucks but you have to just deal with it. This isn't the same as FIAT currency, you can't just get it refunded.

Totally agree, I hope they get rained on soon

Like these things tend to play out they will probably get away with it.
Look at big time scammers as Chris (LTCGear) & Josh Garza (GAWminers). They are still walking freely.