Bitcoin Forum

Read here:

http://blog.cryptsy.com/


This is a total scam and some jail time is deserved by letting people continue depositing.

Total crap!!! 12 bitcoins I had there tying to get them out for months. God Damn it. Another Blow for Bitcoin. Expect the price to drop again...

If anyone knows how to start claiming this back or some of it however hopeless I would really appreciate it!

goodluck getting anything

if they dont have the funds now to just pay out, they certainly wont have the funds after bankruptcy lawyers take their cut off of any 'assets' that may be available.

i think instead of following through with verns idea of bankruptcy, you should file a private prosecution for theft, fraud and general incompetence.

these guys should end up in jail not get away with writing off losses of others after personally gaining.

I know! complete arse hole letting everyone keep depositing. Makes me mad. Everyone who worked there would have made a mint from all the coins that were with drawing at a higher price

Be the first to file suit against them and you have a chance. But after lawyer costs you would be in the hole.

Hacking (Let them say ...) But during
long do they let Deposits. But not Withdrawals.
That is the question asked by the Community.

https://bitcointalk.org/index.php?topic=1237953.0
On November 5 they've told me they have problems. I've get about 0.2 BTC in November from them after over 48 hours.
I have on craptsy only 10000 doge right now. I've sold 3 namecoin or something like that. It worth less than $2 but I can not abstain to not add injuries.
So ... Fuck You Cryptsy, Fuck You Craptsy Retards, Fuck You again.
You may pay 1000 times for than $2 loss of mine.

this is crazy... wee hope cryptsy will open the gates again.

Well, all I ever did was lose money on cryptsy anyway, so they might as well take the rest of it.

On a side note, the blog posts mentions that they were knowingly low on funds and practicing a kind of fractional reserve banking (ie ponzi scheme). These fuckers are most certainly going to jail.

lol

Hhahahaah that blog post was a great laugh.

"About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies.   After a period of time of investigation it was found that the developer of Lucky7Coin had placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit.   This Trojan had likely been there for months before it was able to collect enough information to perform the attack."

He might as well have said, "because ponzi".

I don't think is ponzi. On the Lucky7Coin thread there is a virus alert to not download the code from a specific github page: https://bitcointalk.org/index.php?topic=295157.msg6861797#msg6861797
Maybe they knew about the backdoor, who knows.

oh, no! I was chat banned for one year a few days ago, and now chat is nowhere to be found...

I don't understand if they found that the balances of the cold wallet are reducting, why they didn't change the wallet? Or they are lying about it?

Well, I am assuming the cold wallet is reducing so fast that no body see it coming and poof!!! gone forever!!! But I really hope they get it back somehow.

Seeing as all the BTC went in the same block it would appear as though it was nigh-instantaneous. Not sure how long it was between the LTC and BTC going but I am assuming minutes/seconds.

It has already started dropping.Since they have filed a bank corruptsy ,I don't think they are liable to provide any returns for the invested coins.They're facing a great deficit at the moment ,lets just hope for the best.

They could start a new site with the 80% of the profit going into paying other people off?

they have the tech already there in front of them. Even if it takes a few years then its better that everyones money getting flushed down the toilet..

they could even stop with drawals on the new site to pump up alt coins and improve the profits that way...


what pisses me off is how all the moderators on chat were saying all our funds were safe and nothing wrong leading to people depositing more funds. complete illegal scam...

If they filed for bankruptcy, no one is getting shit without a team of lawyers, even if they do get the coins back.

Scam city can make some television about this joke. They can get blamed for the time they let people deposit coins and never make any notice about this. They just banned people from asking why they don't get there coins back. Big Vern is just a thief who now try to get away with this. If he really cares about it he was online and try to solve things. He was never there to explains things.

What about the money Big Vern earned with this scam do he lost also all his millions???

Given that Cryptsy reserves appear to be zero, lawyering up is absolutely meaningless. At least in Gox's case they still had some minor reserves but it should be more than apparent that Cryptsy has jack shit. Forcing them to bankruptcy will very probably result in less than 1% return and probably more like 0.01% return.
Regardless, BV & his cronies from the trollbox should all get nice long prison terms, there really is no other description than Ponzi for what they've been doing this past year & a half.

This is bad new for those investors and good news for buyers.
because of this scandal the price is continuously decreasing and i think it will decrease more.
I hope this issue will be fix. Provably we are all affected on this scandal because of the price dump...

more important than jail time would be the recovery of our funds! With Paul Vernon in jail, he would be a lot less valuable for users.

Rather than criminal law and lynching, smart people would support a civil law (company law) solution that involves piercing the corporate veil and personal liability of Paul Vernon for breach of duty and not disclosing Cryptsy's bankruptcy. In light of his deception and general way of acting, US law has some very nasty provisions on treble damages coming Paul Vernon's way (in case Paul Vernon does not come forward and honors user withdrawal requests soon).

THAT is how you claim this back.