Bitcoin Forum

If someone had 10 000 btcs sitting around or enough money to aquire about that many, they could probably buy cryptsty out for that cheap. With the now-declining price 10 000 btc will probably be worth about 2 million dollars pretty soon here. The basic business model of cryptsy was making about 3000 BTC/year profit. Vern should try to sell cryptsy as fast as possible. Otherwise, the more he drags it out, the more chance he has to get himself into trouble. The faster he can sell cryptsy the less chance he goes to jail for fraud. He should have a strong incentive to want to sell. If you are a cryptsy user you may be mad at Vern and want to see him go to jail but I think it's better for the customers if he stays out of jail. It would be harder and slower to distribute out the coins and sell cryptsy from jail. If he goes to jail the assets would probably be seized and divided up or auctioned off to repay creditors. If there is to be a buy out and new ownership I think it could work much better for customers.

wait how much does it cost to buy cryptsy ?

I'm thinking 10 thousand bitcoins. So probably under 4 million dollars. If bitcoin tanks maybe cheaper. For a business that can probably make a couple million a year if it's taken over and run by someone who could do it right. For the right investor with a couple million bucks I think it could be a good buy.

Would love to see Cryptsy go on as it was the first alt-coin exchange I really started trading on.  But obviously needs a complete site overhaul and security overhaul which wouldn't be cheap and downtime likely significant if not going with some pre-packaged offering.  Also, would 10k BTC even cover the outstanding liabilities if 13k BTC and 100k LTC have gone missing?

In the year-and-a-half since the hack Vern says they put 3k BTC (exchange profit) into the exchange. I would think if someone walked into Cryptsy right now with 100k in LTC and 10000 in BTC they could just take it over. Buy it for a dollar or some token amount. It has become a toxic asset for Vern. Every second he holds onto it he risks being sued into ruin beaten up on the street or arrested and sent to jail. I would think he would basically give it away for free at this point(as long as they could pay out the customers and thus keep him off the hook from getting sued). Remember, if fraud is found, the customers will be able to pierce the corporate veil and the lawsuits will have him lose most of everything he owns. He will be sitting in court for years pleading the fifth hoping he manages to stay out of jail while having to sit through depositions where he'll be asked some possibly incriminating questions. He should welcome any out at this point even if it means he walks away with a loss. If this exchange makes about 2000 BTC/year in profit then taking it over with 10k/100k in ltc in btc seems like it could be a nice investment.

Who would be a good person to take over and run cryptsy? Please don't tell me Mark Zuckerburg.

Dude they ran the exchange into the ground with lies and deceit and in the process tarnished their brand name. Someone who had that amount of money would be better off starting a new exchange than buying Cryptsy.

I wouldn't agree with your opinion.

Their user database is pretty big. I remember talking with Horus 6-7 months ago. He told me they have more than 300.000 unique accounts.
(That's e-mails, and other private information which are related to a niche)

Since cryptocurrencies are still being traded today and people who own big amounts of BTC or some other "big" cryptocurrencies would see this as a good chance to jump into this business.

If I personally had 10k BTC, I would consider buying their exchange, re-make it from scratch and start paying everyone who's lost money.
It would be hard of course, but achievable.

You forget one important aspect. Cryptsy is based in USA and you(as new owner) will need a financial license if you want to trade without the fear that someone may knock at your door one day.
If you want to take a financial license in Florida(where Cryptsy is based), it will take up to one year and a LOT of money and tons of papers.

So, any investor with half of brain will not put any money in Cryptsy. What do they offer? Yes, a database with customers(I doubt they have 300k) , a company and nothing more. Yes, they do offer a lot of problems you have to fix. You have to fix their platform too. That means a new one with a huge cost and so on.

So, you would better put the money in bank than throw them away.

Reasons an investor would/should want to invest in Cryptsy:

1. They have a turn key business with a big name and customer base
2. They have developed one of the most sophisticated Web trading engines. Yes it's not perfect but it would be a huge task to re design a better design.
3. The bad publicity can be turned around into good publicity with the right "take over" story -I think Vern has to step down though. The bad publicity could actually turn into good publicity for the "hero".
4. Motivated seller(I would think anyway)
5. Own a big chunk of alts
6. Can stake pos alts
7. The cryptsy debit card thing is actually a good business idea
8. Cryptsy was positioned to move into the USD - to BTC brokerage aspect as well as being the main player in the alt world which would potentially make it a bigger business than it is/was.

Even if the buyer get hold of the current funds it won't be attractive at all to take it over.
For starters, it's not even sure the current software is virus fee/ without backdoors.

They do not have a turn key business.

How much work would it take to make sure that there are no other "trojans" in the other wallets.

They have a tarnished name, a ton of broken wallets, that have been maintained by incompetents, massive debts, and a name that means shit. I have no idea how "sophisticated" their trading engine is, but it makes no sense to me to bail out vern. You are going to have to start from the ground up anyway to make sure there are no more viruses lurking in there and to repair all the "broken" wallets.

Some buying it out would be good but imagine the problems they have to face even after buying it, it's not worth the effort and money specially after what happened and I don't think anyone would spend money just to get into this mess in which is in a deep whole so someone creating something from scratch would make him spend a lot lesser than just buying cryptsy out and for that matter, Cryptsy is and will be gone from our memories.

Cryptsy International LTD, a Belize Company

Cryptsy reputation today is worst than new from scratch. where is the guarantee if paying everyone who's lost money, that those users stay on cryptsy after all trouble.
This looks like just as hope  someone who was left without coins on cryptsy

If someone would buy Cryptsy for 10k BTC and this is a big IF, that someone would have to invest at least 10k BTC more to fix their reputation which is currently BIG TIME BS.

I think the easiest option is to let them go under.

Why not, he would be able to "Sugarcoat" the missingfunds ;D



Zucker= Sugar (german word)
Berg = hill

Well, the name is tarnished indeed, but IMO it's still salvageable with some proper management. Actually even the takeover itself could raise high hopes. Not sure however if that wouldn't end with a bank run :).

With all those "reasons to invest/buy" Cryptsy you forgot a MAJOR reason NOT to buy Cryptsy.

The buyer of Cryptsy will assume all the liability and will be fighting lawsuits for years to come.  Nobody wants that.

Project Investors Inc which operates Cryptsy International LTD is from Florida, USA

Also, even you are registered in Belize and you don't have any office in USA  BUT you deal with US customers you MUST have a financial licence from USA(from each state). FINCEN registration is NOT a financial license.

Project Investors Inc have a contract to manage Cryptsy International LTD, if that LTD is insolvent it will be closed by that banana republic laws, not US laws.

I would not favor anything of Cryptsy. They have proven not to be trusted. The only thing they can offer is poison.

If they would offer me a buy out, I would gladly accept it.
Even if it would mean a loss of ~15%.
But truth is, they don't have enough funds to compensate all their users.

I still don't see any benefit to taking over instead of starting over.

The only comparison I come up with is Poker Stars buying Full Tilt Poker, but with that one they got the software (which had no issues, unlike cryptsy's) and because it helped them settle their issues with the US government. When they did this they left Ultimate Bet/Absolute Poker and their users to rot because there was no benefit to them to bail them out.

The only benefit to bailing out cryptsy would be to gain goodwill from users, but it would be much easier to start over and offer cryptsy users some sort of incentive to join their new site. If you believe this story about a hack, crytpsy's backend/software/hardware/wallets are useless to anyone.

I think this is kind of an oversimplification. If vern would have taken the time to once a week put some coins on a thumb drive or paper wallet and deposit it at the bank that in itself would have avoided the "cold" storage hack. The reality is Cryptsy wasn't using cold storage. The wallet they call the cold wallet was really a hot wallet. ANY software platform has vulnerabilities. Cryptsy never had a bona fide cold wallet - it was the coin storage/wallet not the website design that was the problem. There's really nothing to suggest that the trade engine or basic site design was the problem - it could probably be modified to work fine with a more secure wallet system. The site as it exists is the culmination of years of web design - over the years they refined and improved it to where the actual site itself was working very well in recent months. Cryptsy is still the #1 brand for alts - no one can walk in at ground level and just have that #1 brand name except to buy out Cryptsy. Even Poloniex is not close to there yet. Think about their debit card thing, what that would mean for alts to be able to load some doge coin onto your debit card and then go spend that money at the cash register - that will be the first gap to bridge "alts" as a commodity as they exist now into their intended use as true currency. Whoever is the first to offer such a service will be the market leader in the alt world. Cryptsy is a truly innovative company. If you could get a real security team in there it could go places.

The site was working well, except for a billion wallets in "maintenance," no withdrawals, and no cold wallet, sounds like a great investment.

Does their debit card exist? Or is it just more BS from a guy who has been lying about his entire business for over a year?

Stop believing the BS people spew at you, and start looking at the facts. The whole point of crypto is that everything is on public ledgers so you can't BS people. None of the public ledgers match any of the shit you are saying about why cryptsy is a worthwhile investment. I guess if you still believe after all this, my idea that there is NOBODY stupid enough to continue to trust in cryptsy was wrong, but there certainly aren't enough of you geniuses to dig everyone out of the whole to make everyone whole, because if there were they would have put a bigger dent in the shortfall created by the "hack."

I think you should contact Homero Joshua Garza and ask him and his team if they want to become proud new owners of Cryptsy.com for a low low price of 10,000 XPY... and he can reimburse everyone's stolen/lost btc with freshly minted XPY 1:1.

I think you guys are forgetting something. An existing exchange with healthy finances and who wants to grow would see Cryptsy as an absolute steal.

Whether they keep the Crypsty platform or not isn't really important. Instead what they are really interested in is purchasing the user base. Instantly adding 50k / 100k / 500k of new users would be of massive benefit to their own platform. It would also be a great PR opportunity.

There's a number of suitable exchanges out there that would fit the bill, and I'd be surprised if a few aren't already eyeing up this opportunity already. Take your pick from these: http://www.cryptocoincharts.info/markets/info

Why purchase the user base when you can just post an offer to crypty customers on all the forums?

This great user base hasn't been able to make up the shortfall caused by this hack, o why would someone pay enough money to make up for the hack to get it?

In the buy out scenario, do we have to wait a long time to get our money back? Will the new owner honour the previous debt?

Not only that, i don't see users being loyal to cryptsy.

Customers with no loyalty are trust are not worth a dime.

That's the way it is.

What if Cryptsy gave a share of ownership to each customer that lost money.  For example, if we are going to each lose half of our money, they could give us shares of the company for the money we lost and the rest could stay in bitcoin or other currencies on the exchange.  Then the customers become investors.  Vern can still sell his remaining portion of the company to another investor that wouldn't have to compensate us.  We (customers) would then have a vested interest in staying with Cryptsy and we could share in the profits.  Also, Cryptsy could allow customers to trade shares of the company on the exchange just like any coins or fiat.  We could sell our shares for bitcoin etc. or buy more shares.

A share is actually a nice idea.
However who will every trust them again. Who is telling you they were indeed hacked?
Or even better run away with more money from customers?

I guess I was thinking that the current owner would still sell his remaining portion of the company so it would be all new ownership and management.  I figure that if we are going to lose money anyway, we should get something for it and hopefully the site could still function.

No one with 10 k bitcoin is dumb enough to invest in cryptsy , i think that all will end up with vern in jail

Ideally I would like someone to buy out Cryptsy and give us credit for what we lost, but I don't think that's going to happen.  I'm not sure that it would be in a buyers best interest to do that because he would basically be paying off someone else's debt.  Plus if the company is being sued, then the new owner may be responsible for judgment against cryptsy.  The only positives for a buyer are that he may have some built in customers and the company's name recognition.

I would like to see him in jail and punished properly. That will set a good example for scammers.