Bitcoin Forum

Step 1: "Phantom BTC" credits
Create a new, fake currency called "Phantom BTC", which cannot be deposited nor withdrawn.  Credit all users with Phantom BTC equivalent to their current outstanding BTC holdings and set BTC holdings to 0.  Future BTC deposits will be credited as BTC.

Step 2: BTC to Phantom BTC exchange
Create a new trading pair between BTC and Phantom BTC.  Collect a Phantom BTC commission on every trade.  This means that on every trade the amount of Phantom BTC in existence will decrease.

Step 3: Phantom BTC buyback
Use profits from other trading pairs to buy back Phantom BTC, further accelerating the rate at which it disappears.  If the stolen funds are recovered, all of the Phantom BTC can immediately be bought back.  Eventually there will be no more Phantom BTC and Cryptsy can close that trading pair.

Having a BTC to Phantom BTC exchange will allow pessimistic bagholders to withdraw their BTC at a loss, while allowing opportunistic traders to essentially buy Cryptsy's debt, with the possibility of significant returns when Cryptsy finally gets everything back on track.  Patient/optimistic bagholders can simply wait until a favorable exchange rate or until the buyback.

This just sounds like a easy way for them to garner more time to try and escape having to pay back funds. No need to create hope.

Lol, it looks like you spent a good deal of time in thinking about what you wrote but I think Cryptsy is, at this point, beyond saving.  And the simple reason for it is that any exchange/trading firm/whatever has to have the trust of its customers.  It's that simple.  People have to know that if they deposit funds on the exchange or trade currencies, they're going to be able to get them out.  Cryptsy has badly violated this trust and I don't think it's going to be fixable.

The money was stolen in 2014 and Cryptsy did not tell us about the hack and keep on deceiving us. So it lost our trust.

LOL. "Phantom btc" would drop to 10$ within 4 or 6 weeks. So basically you're suggesting to donate all users' balances to cryptsy.

The idea is very idiotic. "Phantom-btc" tanks and burns the minute trading starts ...

PM me; i'll sell you 5 Phantom-BTC for every 0.5 btc you send me. Easy 10-begger for you. Just let me know how much you want to order. We'll deliver any size of trade.
Get rich quick with "phantom-bitcoin"  ;)

step 1 is the same that made bter, a chinese exchange.
well it's over months that all users don't see anything back, and exchange work again (with low volumes)...
When exchange scam, money gone....

I wouldn't like the idea personally as your giving some more freedom to them (they had their chances since the start and they screw up) and the only way they could save themselves would be to calculate each persons losses over time and give them the exact amount by calculation breakdown for everyone together with some bonus as part of it.

Would people really be stupid enough to buy these phantom btc and/or leave any other coins on the exchange if it opened again?

well after see for x times "history repeats itself" I hope no...
Mintpal, Moolah, Bter, Mtgox... Too many exchange bankrupted, "hacked"... well I hope a decentralized exchange in this economic situation.... a sign that "a safe exchange is possible". 

I agree with the sentiment that cryptsy did lie but it's for users to decide whether to trust them or not.
Having an option to sell at loss is great since i can't see they will be saved other wise.

No way this hacker will return the funds...

Add another market is kind of stupid  and too complicated, no one gonna use it.
Do like Vircurex, freeze the funds and release as long they get profit. But they need to be transparent and don't delay withdraws.

That is stupid, creating another altcoin in a dying exchange is not going to help anything, it's just making people more scared from them
With that "Phantom BTC" you are only giving cryptsy more chance to running away from people's money furthermore :(

I would like to see something like this happening. It's better then to wait for them to pay for the withdrawals...
Which won't be happening offcourse.

As far as i know only bitcoin and litecoin are affected so the only way it trading other coins like eth doge ripple in other exchanges and earn a little bit to cover the loss.

No Phantom coin can help cryptsy.
They made sure we can't trust them, so why would we?
Like said above, it would just give them more time to get away with stealing our coins.

Well I didn't lose any money there as I've never used the exchange but after reading their declaration I must say that if it's true then it really must've sucked for them. I don't agree on how the covered it all for more than an year but really, a theft of those proportions will sink any ship. Honesty would be better from an ethical point but perhaps they really tried to keep the ship from sinking until the end. I don't know, maybe I'm too naive.

It's too late. "Cryptsy.com" is down, the offices are vacant, the CEO is missing, and the assets are involved in a divorce case.

great ideas. i would prefer a soft loss (% butremain the original coins)
over a process by a judge, since they have no technical clue.

i think there should be an "official" vote only for people who have funds on the dge there, since cryptsy haters and fanboys might distorrd the public picture.

This sums it all up.
I know having something to believe is better then to accept your money is gone. But right now it's fair to say our money is gone...

I have been following the other thread that Spoetnik and Gleb Gamow have been bombing and it's a bit hard to actually glean information from it.  Where are the offices?  Who is the CEO? 

Cryptsy.com is not down, btw. 

not phantom, they already have a name, and it is BTC_points, LTC_points, XMG_points, etc, as btc and ltc wallet is empty, that emptiness will be filled with points, if XMG wallet however is only missing 10%, than users will get 90% of their balance with real XMG and 10% with virtual XMG_points, that can be traded against real XMG only, once a week some of real XMG profits will be traded to buy XMG_points, as we see initial most probable exchange rate should be 1 XMG_point for 0,9 XMG, however real balances should be transferred into another domain as cryptsy is a dirty word, so everyone will have its real cryptocurrencies back and can either w/d them or trade them with the new exchange, the old should live only with point-cryptocurrency trading pairs. if someone is willing to invest into buying points(and selling them later with profit) it can help some of users that want to get some of their coins back earlier with some loss.

The problem is that Cryptsy pretty much lost the trust of its customers, and regaining that trust would be a long and hard procedure. Bter survived this way, but it lost most of it's customer base and it's still vegetate on the sideline. I think Cryptsy still salvageable as there are a lot of interest in its survival, but they would need someone to take over.
Actually the way they held back important information and mislead customers used to worth a couple years in jail or at least a rather big fine in most legislations, so I'm not sure if Big Vern will be in the position to carry on with managing Cryptsy.

If cryptsy can survive depends on how much their debts -/-  assets are. It the difference is too big, no other party would want to take it over.
In a way it would be good if they could survive and/or having the 'hacker' return the funds. But in am very sceptic.

"Big Vern" needs to be found and arrested for fraud. If you lost money in Cryptsy, you need to be talking to the Florida cops.

they didn't have financial license anyway. it is not necessary to be a fraud. the absence of a financial license can bring them up to 6 years in jail. :)

Then let's take some action and get them served.
Total loss is just too much to let them get away with it. Jail time for their team of thieves would be a nice consolidation. At least for me.

10k btc, 300k LTC (+ 35k btcd and 230k X11) and maybe these are not everything. Also there are some ongoing class action suit against Cryptsy likely will have to pay not just for the coins but also compensation for damages. So it will be a messy stuff what can last for years. I'm not sure if any investor want to jump into such trouble.

Cryptsy has lost, big vern has lost
No trader will even consider them as an exchange now. They lied, 'got hacked' and then lied about lying.

The problem of Cryptsy is that they loosed the trust of its customers, and this is very difficult to recover. If they are not lying (all can be possible) and they had stolen 10.000 bitcoins, why they didn't say it before. Users want transparence to trust them. In my opinion users only can recover an small part of this btw (or another cryptocoin) if they make a denounce.

Yes people demand and deserve transparency. Especially when it's about their money.

What Cryptsy did was wrong and since customers could lose a lot of money, they will not forget, nor forgive.

I doubt cryptsy can be saved.
A lot of debt, no trust. And offcourse the SEC investigation.

How can you even hope they cope up with all this?

The reputation of Cryptsy has been ruined. So if somebody buy it and use its old name, nobody will trust it.

Trust was lost, Cryptsy is gone.
We all must be aware that this can happens any of those exchanges.
When they lose their btcs they come up with lies and stories for kids..
This problem will become major with BTC increasing in price..

Can BTC continue to increase in price with issues like these?  Some people will lose confidence in it because of the risks.

Yes this is bad karma!
But bitcoin also survived GOX and many other exchanges mintpal,coinex..(There is a huge list of ex exchanges..). Idea behind bitcoin is so strong that all those scams and hacks prove only that bitcoin have great value and potencial!
Just don't bother yourself with that, everyone wants to have it..
When demand grows price rise..
My opinion cryptsy won't influence price at all..


How to overcome all those problems is right question!?

Only some 13000 BTC had been stolen from Cryptsy and that's nothing in comparison to the Gox theft. In addition a lot of altcoins also disappeared (2.5k-3k BTC worth LTC, BTCD and XC) what will be dumped for BTC at some point, I guess. Even 13k BTC wouldn't have too much effect on the prices.

13,000 bitcoin is just 4 day supply of bitcoin. It will be absorbed by the market easily. The altcoins are even easier.

But individuals that lost money can't absorb those losses very easily (like me).

how much have you lost?

about 3 bitcoins, for me that's a lot

I lost a few vert coins. It is just about 0.0xx bitcoin. But I still want the money back. BigVern should be punished.

I agree.  Even if we can't get any money (bitcoins) back from him, we need to make sure he faces justice through the courts and is punished.

That would be nice. Look how long it took for Karpeles though. :P

but that fat dude got some rough treatment in japan, i read what they do usually (you are gulity until its proven otherwise...)
he got some japanese justice culture package :D

Big Vern needs that too.

Well yes Karpeles almost doged the bullet but in the end you will see how scammers will be caught.
There is justice, only it takes some time. And although Vern don't seems to be a real crook, he was responsible for what happened at cryptsy

Having such a poor security means he stepped into a game he shouldn't have. And now he will 'pay' for it.

The US doesn't have an extradition treaty with China. On the other hand, China may decide they don't want to give "Big Vern" permanent residency and kick him out as "likely to cause harms to the national safety and interests".

Sounds like you work in investment banking and yes it would work.  Its a fractional debt system enabling profitable business to continue, so long as the debt financing costs less then the profit the conclusion is repayment and continuation of the previous business.

Its unfortunate we cant manage to do that overall, there is no super whale to step in and restore confidence in trading for this site apparently.    Alot of assets a business has is the intangible kudos and memory of regular trade from so many people.    In the real world its very often a failing or even corrupt system is restored via a transformative takeover, it is risky but the costs of buying such a ruined asset is low and so long as trading does resume and confidence builds it should repay.
  The debt system like said would be an appreciative asset - unlike a pyramid system this is the correct use of mutual benefit and compound gain for investors and positive for those much smaller traders who utilised the site to bridge the gap across multiple small alt coin chains.   A famous example, Warren Buffet 'rescuing' a failing bank. He profited, society gained and backers of the deal also did well
http://kb.trisugar.com/node/12550

   I think its feasible but all these bitcoin fatcats mostly have the idea to just sit there and wait for the price to rise; no economy works like that.   Either collectively useful work is done and bitcoin and other coins describe and enable those transactions or the whole deal is waste of time like a lottery and only the thieves and con artists gain.  Security, debt recovery, junk bonds like this is all normal; failure is normal and work to recover is normal.  Big government bailouts are abnormal, any normal capitalist society must deal with its own trash through loss to profit

This is an interesting idea (Phantom BTC).  It is better than leaving everybody with nothing.  The problem is who is going to take over cryptsy to do something like this.  There's no way Big Vern is coming back and I don't think we want him to manage it.

I actually had a similar idea.  I think whoever buys the company should give the people that have money on the site Cryptsy shares (shares of the company) equivalent to what they lost.  Then they could set up the shares to trade on the site like the other coins.

Was it Poloniex that setup an IOU section when they lost some funds, I forget who but they managed to pull it off.  I think they basically were immediately honest about what happened, its possible it was not as bad a loss in that case as their own systems shut it down mid theft.  Apologies for my bad memory if it was somewhere else

Why would anybody buy the company? No assets, no brand value, and a CEO on the lam.

The only way I can think of is that they absorb their debt and build a new company. This will definitely makes them instantly trust worthy but of course, it's a very risky move.

If they had all new ownership, I think people would still use their trading platform.  I liked how it worked.  If they gave ownership to users that lost money, they would also instantly have customers as well.

Rumor has it that Charlie or Bobby Lee is gonna step in to fill the void. No, not buy Cryptsy, but start their own alt exchange.

I think the irony is an entirely new entity will be less trusted and familar to customers.    Alot of people here may swear off ever trusting this place but many are just going there to cash in their chips, no big sums just passing through as a convenience and they'll go back.   Its worth them just resurrecting the crytpsy brand, it will just involve risk for those do put into starting it back up; most customers are small time and hassle of finding something better is a bigger obstacle

There's actually no way that Cryptsy can be saved.
It would be good enought if they were honest enough to return our coins, which i don't believe it won't happen

Well since February that they don't give any feedback. I guess is now safe to say that they have just stoled our coins and there is no way to get them back.

Whats the point on cryptsy wanting to do this though.

If they all lost face from this community, I wouldnt think anyone would want to come back.

It also allows people to just look towards a new face alt coin exchange then a old scum bag one.