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Title: delete Post by: CoinHumper on December 07, 2013, 07:31:02 PM delete
Title: Re: delete Post by: bidji29 on December 07, 2013, 07:33:20 PM Of course they are operating on fractional reserve.
Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs Title: Re: delete Post by: litecoin_messiah on December 07, 2013, 07:36:05 PM Yeah you are probably right, i saw a user mention he deposited 1btc and had 101btc in his account, he then withdrew it to this address
http://blockchain.info/pt/address/13VmZgvanGpsJXnLnT3NWgPdbfPLwR6Rsv He told me he was joking, after i begged him for 1 btc but i don't believe him, throughout our conversation what he said seemed to be legit. FYI check this bitcoin topic http://www.reddit.com/r/Bitcoin/comments/1s73f7/i_have_sent_back_the_60_btc_i_was_mistakenly_able/ they sent 60btc to someone by accident, lucky for them the guy sent it back but they probably sent it to more than 1 person. Title: Re: delete Post by: hypostatization on December 07, 2013, 07:37:30 PM I asked for confirmation multiple times today on whether or not they can cover pending withdrawals. I did not receive a response. They are slammed with support work, so that could easily explain the absence of response. I worry about this, however, when considering the hack followed by (unrelated) panic selling and Bitcoin withdrawals.
Title: Re: delete Post by: cryptohunter on December 07, 2013, 07:48:12 PM Cryptsy states that it exceeds 100 BTC monthly fee earnings. Quote from: https://cryptostocks.com/securities/57 We currently are collecting in fees over 100 BTC per month. We estimate that by bringing Fiat currency to the exchange we will increase our revenue by 10-20 fold almost instantly (within 90 days to allow for licensing). This equates to fee income of 1000 to 2000 BTC per month within 90 days and increasing as more users migrate from other services. At 2000 BTC monthly income, each share would receive 0.004 BTC per month - which would give a full return on investment within 1 year. We currency have over 13,000 users, and over 3,500 users in the United States. A very large portion of our user base has expressed that we would be their exclusive exchange once we begin offering Fiat currency exchange. they were turning over 5 million in qrk alone, i doubt they have money worries right now along with their shares they sold. Title: Re: delete Post by: Oldminer on December 07, 2013, 08:00:07 PM I was just watching a convo in Cryptsy IRC Support about the possibility of Cryptsy operating off fractional reserves. For those that do not know what fractional reserves are, it's where any financial institution borrows from deposits on hand down to a fraction and then operates on what is remaining. They are gambling that all depositors will not withdraw at once or in masses. Then use deposits on hand to handle the normal flow of business. Effectively they are getting a free loan from their customers. Cryptsy was prime for such a maneuver. I think this is what is happening. Cryptsy cannot simply shut down and allow customers to withdraw funds, because the funds aren't there. So they keep this charade up by feigning technical issues related to an upgrade while they collect deposit funds to hand out to the oldest and loudest people who are having deposits "disappear". It all makes sense. It's the only thing that makes sense as the technical bullshit is border lining on stupid. Big Vern needs to PROVE he has coins on hand. Anyone have any thoughts? You mean like a bank? Title: Re: delete Post by: tiptopgemdotcom on December 07, 2013, 08:02:51 PM Sad, but I am afraid this is the most logical explanation.
Title: Re: delete Post by: cryptohunter on December 07, 2013, 08:06:55 PM put the fees up then and start getting back into the green, i mean with the increased turn over they could make back any losses asap.
however i don't think it is the case. i think their site is just not able to cope any longer. Title: Re: delete Post by: Hilux74 on December 07, 2013, 08:28:11 PM It says right on thr Cryptsy twitter feed that Vern is in Vegas partying it up. When he's done giving two handed zambonis to the hookers I'm sure his full attention will be back.
Title: Re: delete Post by: Kane49 on December 14, 2013, 05:09:35 PM Anyone still doubt they are operating off fractional reserves and feigning technical issues? The reason for no real updates is so that it can't be used as evidence. I really wonder if they think the crypto world is this stupid. Actually the last few days have made me certain that they do not. Title: Re: delete Post by: Bobsurplus on December 14, 2013, 05:16:27 PM I've been able to move coins in and out the last few days too without any issues, I still have a bit of a lag on trades though but its no big deal because for the most part I'm http://www.youtube.com/watch?v=NG1qooBzE2w for the longest time!
Title: Re: delete Post by: fr4nkthetank on December 14, 2013, 05:17:50 PM I have had issues where you get negative coin balances after a trade.
I payed back, sent a ticket (obviously no response yet :) ). but yeah. I feel sorry a little for cryptsy because other than coinex, its a agood site witha lot of cryptocoins to trade. I feel people bash too much on it, but yeah I wonder how much money they are making. dont forget they raised (or are still raising) money issuing stocks online to whoever thinks buying unregulated un-everything piece of electronic bits thats tells you will get dividends of some sort at some time. Title: Re: delete Post by: kaito on December 14, 2013, 06:24:50 PM Of course they are operating on fractional reserve. Are you kidding me? They rake in enough fees to comensate any losses due to bugs.Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs Title: Re: delete Post by: Reece523 on December 14, 2013, 06:39:41 PM Cryptsy should double their fees and fix their site. The money would be more than worth it for the peace of mind it would provide...
Title: Re: delete Post by: strunberg on December 14, 2013, 06:45:01 PM Cryptsy needs to add features such as Limit buys and sells.
I authorized a buy of a currency at a certain price,and the website bought the coins at a higher price than what I authorized. Lost a lot of money. Title: Re: delete Post by: Kane49 on December 14, 2013, 06:59:50 PM Of course they are operating on fractional reserve. Are you kidding me? They rake in enough fees to comensate any losses due to bugs.Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs While I don't think it's a fraud issue at all, fees would not cover a serious hack as they have stated at their peak, they were at 100 BTC per month. A hack or spending spree could easily make it a multi month payback at that rate. ~BCX~ Hi, they released new earning figures. Last week they made 180BTC in Fees Title: Re: delete Post by: bigvern on December 15, 2013, 04:16:45 AM We do not operate with fractional reserves. Any exchange that does that will never get licensed. Part of getting licensed is having the financials audited, including customer held funds. I have to assume that any coin can and will have a "bank run" at some point. I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit. If you want to move all funds out, then they are there to move. They may, however, need to be moved from our offline wallet to the hot wallet first.
Any overwithdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back). These issues are rare and getting rarer. Paul BigVern Title: Re: delete Post by: Slingshot on December 15, 2013, 05:05:54 PM We do not operate with fractional reserves. Any exchange that does that will never get licensed. Part of getting licensed is having the financials audited, including customer held funds. I have to assume that any coin can and will have a "bank run" at some point. I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit. If you want to move all funds out, then they are there to move. They may, however, need to be moved from our offline wallet to the hot wallet first. Any over-withdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back). These issues are rare and getting rarer. Paul BigVern Thanks for the reply Paul (BigVern). Glad to know this straight from the one in charge at Cryptsy (You). P.S. An automated Audit was just done on my account four times. Glad to see that was done but I never requested it, nor ever even filled out any support tickets since around October for a very minor issue back then. But it's nice to see that sweeping through my account and verifying every balance is accurate! Nice touch. IE: Recent Audits Requested Processed Changes 2013-12-14 18:29:28 2013-12-14 18:29:39 None 2013-12-13 10:48:09 2013-12-13 10:48:15 None 2013-12-13 04:37:29 2013-12-13 04:37:37 None 2013-12-13 03:49:10 2013-12-13 03:49:19 None 2013-12-13 03:46:33 2013-12-13 03:46:40 None But I sure didn't request any audit. Surely this is an automated system set of checks. I am rather certain others will see this in their respective Balances Page soon too. That's great! Thanks Paul Caveat emptor - let the buyer beware! Title: Re: delete Post by: Speaker on December 15, 2013, 05:15:49 PM Why the hell is grandcoin gone without warning?
Title: Re: delete Post by: LiteCoinGuy on December 15, 2013, 05:22:20 PM be carefull with that kind of exchanges. i never traded there but heard that they had some problems. Fractional reserving is a no go. also try other exchanges (maybe better ones) like www.coins-e.com
Title: Re: delete Post by: Slingshot on December 15, 2013, 08:33:42 PM Why the hell is grandcoin gone without warning? Don't know. Maybe it forked... Figure it out! Title: Re: delete Post by: achillez on December 15, 2013, 08:39:47 PM We do not operate with fractional reserves. Any exchange that does that will never get licensed. Part of getting licensed is having the financials audited, including customer held funds. I have to assume that any coin can and will have a "bank run" at some point. I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit. If you want to move all funds out, then they are there to move. They may, however, need to be moved from our offline wallet to the hot wallet first. Any overwithdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back). These issues are rare and getting rarer. Paul BigVern ... and this is why Cryptsy is one of my favorite exchanges. Title: Re: delete Post by: kaito on December 18, 2013, 10:47:43 PM Is there any doubt left that Cryptsy is operating off very limited funds. Yes. I still have all my doubts.Title: Re: delete Post by: YoyodyneSystems on December 18, 2013, 10:54:16 PM I lost a ton because they started holding my funds during the crash. Now they will not cancel my withdrawal so I cannot even use them.
I've lost 3x now. So I have been going all night typing everywhere I can until I get my funds back. I used them exclusively and defended them left and right. Now I am burned. So I have my hands... I will type non-stop on every site - forum.. everywhere. 20 years of marketing online put behind it. So disturbed and pissed now. And yes they are holding many thousands of peoples funds and deleting peoples tickets. Title: Re: delete Post by: led_lcd on December 18, 2013, 11:00:14 PM We do not operate with fractional reserves. Any exchange that does that will never get licensed. Where is Cryptsy licensed to operate (or where is Cryptst intending to obtain a license)? Title: Re: delete Post by: Wipeout2097 on December 19, 2013, 03:14:54 AM Could you guys provide EVIDENCE of what you are claiming?
Title: Re: delete Post by: mullick on December 19, 2013, 03:19:06 AM I have pmed a lot of users on here who are having withdrawal issues and most have not responded over the last 24 hours. If you are please PM me either the email used or your username and I can investigate and get it sorted out for you
We will get to all open support tickets and get them resolved. Title: Re: delete Post by: stink on December 20, 2013, 01:33:50 PM My testing leads me to believe they were using fractional reserves. I am working on a document now.
I think they may have moved away from this or are moving away from this currently.... this one I will need help to test. This would also explain why they would support autodump to keep downward pressure on the markets so they would not need to cover. A dumb question... couldn't they be transparent in providing the wallet address'? Color coins are now needed to decentralize the exchanges. Title: Re: delete Post by: HappyComplex on December 22, 2015, 07:05:10 PM Don't know how anyone could say they didn't have fair warning
Title: Re: delete Post by: AlexGR on December 22, 2015, 07:26:37 PM When I saw the situation where people's deposits weren't getting the ok for withdrawal (especially after knowing 2 cases of whales who experienced massive issues), I wrote this:
I £^%$%$ am! That shit creeps in anywhere it can find the slightest opening and the exchanges are so wide open to it the make a barn door look small. I'd love to give cryptsy the benefit of the doubt but if they had full reserves there's be absolutely no issue with withdrawals, their business would suffer with these claims but delays kill confidence and they'd do everything in their power to avoid them. The thought they might be running a fractional reserve scheme has crossed my mind. The question is, in such a scenario, what have they done with people's BTC? And, if the BTC market is oversold due to the fractional reserve practices where BTCs are "supposed" to be in cryptsy, but they have been loaned or sold to pressure price, then what does that mean for BTC's price when clients come back knocking for their BTC? I'm still wondering whether they could have taken a big BTC stash from their exchange, shorted BTC in another exchange, sold coins, made a self-fullfiling prophecy / market manipulation in absence of serious buying support and then locked profits. But if they had done so, they'd still have the BTCs (and the profit). So what the hell have they done with the BTCs? ::) Title: Re: delete Post by: Blawpaw on December 22, 2015, 09:04:27 PM Damn. This sucks. I can't withdraw my funds from there. I just hope that they can solve their issues and that we can retrieve our funds.
Title: Re: delete Post by: XMRpromotions on December 22, 2015, 10:50:41 PM Cryptsy has had a long time to publicly address these allegations. Their silence means a lot to many of their former, current and prospective customers.
This should be a reminder to everyone that currencies should not rely on a single exchange and that customers should never trust 3rd parties with a large amount of deposits over a long period. Title: Re: delete Post by: bhokor on December 23, 2015, 02:19:40 AM I think there are 2 possibilities, first they have been hacked and are trying to hide it or really they were using the fractional reserve and now they are broke
Title: Re: delete Post by: RaginglikeaBoss on December 23, 2015, 04:24:15 AM I think there are 2 possibilities, first they have been hacked and are trying to hide it or really they were using the fractional reserve and now they are broke I love how this thread was nercro'ed. But, they appear to have been doing something fishy for quite some time. Being hacked isn't likely, but I have always had the feeling (no evidence, hence a feeling) that they have been meddling in fractional reserve trading. I mean, it's a hugely profitable tactic, but if people rush to withdraw it can cause chaos. Hence, the massive withdraw issues they have been having - especially in the past two weeks. Title: Re: delete Post by: entertheabyss on December 23, 2015, 04:29:46 AM Another possibility is it could that they had a database failure of some kind and their accounting system is FUBAR, now they have no choice but to manually verify all withdrawal requests. Not saying that this is the case, but it is an often overlooked possibility. Still they have been fucking up long before this withdrawal fiasco, I would not recommend using them for many other reasons.
Title: Re: delete Post by: Spoetnik on December 23, 2015, 04:42:10 AM be carefull with that kind of exchanges. i never traded there but heard that they had some problems. Fractional reserving is a no go. also try other exchanges (maybe better ones) like www.coins-e.com You mean the one that was hacked via it's chatbox then later shutdown ? R O F L EDIT: Ahh never mind i think i was thinking of the other one with the name "coin" in the title.. The one you mentionrd had the hidden order books for max coin on launch LOL Title: Re: delete Post by: Spoetnik on December 23, 2015, 04:44:25 AM Another possibility is it could that they had a database failure of some kind and their accounting system is FUBAR, now they have no choice but to manually verify all withdrawal requests. Not saying that this is the case, but it is an often overlooked possibility. Still they have been fucking up long before this withdrawal fiasco, I would not recommend using them for many other reasons. BigVern is just too busy in China setting up a Chinese version of Cryptsy. Meanwhile.. While you all wait.. recent ties to a BTC account with 6 million usd in Bitcoin was uncovered. They prepped for a grand Goxx'ing. Title: Re: delete Post by: The Sceptical Chymist on December 23, 2015, 05:11:31 AM Of course they are operating on fractional reserve. I'm an ignoramus about a lot of things related to bitcoin: Were these hacks and bugs officially announced at any point? It seems like no one who uses Cryptsy knows what the hell is going on there, and their staff certainly isn't communicating. It's gonna be Gox all over again.Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs Title: Re: delete Post by: Spoetnik on December 23, 2015, 10:23:39 AM Of course they are operating on fractional reserve. I'm an ignoramus about a lot of things related to bitcoin: Were these hacks and bugs officially announced at any point? It seems like no one who uses Cryptsy knows what the hell is going on there, and their staff certainly isn't communicating. It's gonna be Gox all over again.Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs http://cs.rin.ru/forum/images/smilies/JC_goodpost.gif yeah hacks & bugs have been acknowledged by Cryptsy endlessly all along all over Crypto by every staff member. Not sure where the fuck you been.. don't believe me then just go look around. ..hurry though some of them are frantically running around deleting topics.. blanking them out & locking them. Title: Re: delete Post by: shanem on December 23, 2015, 02:40:08 PM Cryptsy is trying to prevent people from withdrawing especially the large holders. I believe that Cryptsy already anticipated this which is why they changed the trading fee structure to a withdrawal fee. This is to encourage people to trade on Cryptsy without withdrawing. Now many people are withdrawing as the withdrawal delays get longer and longer.
Title: Re: delete Post by: Nxtblg on December 23, 2015, 04:08:00 PM I'm still wondering whether they could have taken a big BTC stash from their exchange, shorted BTC in another exchange, sold coins, made a self-fullfiling prophecy / market manipulation in absence of serious buying support and then locked profits. But if they had done so, they'd still have the BTCs (and the profit). So what the hell have they done with the BTCs? ::) Uhhh...it's actually the opposite case that's dangerous for a financial institution: a hot trader, turned hot-headed, makes a big bet that goes tragically wrong. Then, you'd have a fractional-reserve situation. You think it can't happen because professionals? Allow me to introduce you to https://en.wikipedia.org/wiki/Nick_Leeson#Career That said, I have no evidence that the Cryptsy fellas did anything like Mr. Leeson's race to the top of Bankruptcy Mountain. Like you, I'm just palavering. Title: Re: delete Post by: anderl on December 24, 2015, 12:59:59 AM Cryptsy is trying to prevent people from withdrawing especially the large holders. I believe that Cryptsy already anticipated this which is why they changed the trading fee structure to a withdrawal fee. This is to encourage people to trade on Cryptsy without withdrawing. Now many people are withdrawing as the withdrawal delays get longer and longer. In the existing financial system this is called a bank run and when the bank closes its doors to withdraw it means that yes they were operating on borrowed funds. Fuckers never learn. Big Vern is the same kind of tool that worked at a big bank, just a get rich stepping on the little guy kind f fellow. I hope he gets his justice, karma is a bitch. |
