That would result in all these "hacks" getting investigated by the insurance companies, which makes it a lot harder to hack yourself. Part of the reason that people try to/do get away with these failures is because nobody really know how to, or is incentivized to actually get to the bottom of the situation. An insurance company on the hook for a 10m payout would certainly have a reason to actually get to the bottom of things. Also, bitpay's insurance didn't pay out when they gave away 5k btc when their CFO's email got compromised. I'm not sure if bitcoins/altcoins would be included in the "data" they are insuring. |
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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/infoWhy 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? |
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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  . 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." |
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Two days later, Paul Vernon pens the bankruptcy option. http://blog.cryptsy.com/Here are our options:
1. We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements. Days later, Paul Vernon goes on the air further espousing the bankruptcy option, all the while knowing that he already filed for bankruptcy on January 11, 2016. ... This is bad, no chance to get our coins back  There's been no chance for a while. |
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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 . 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. |
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Summary: Garza is a con man who took your money.
They sold more hashpower than they had, and when they were running out of coins to pay out they came up with paycoin, which had a bunch more lies and ways to take money.
Pretty much, except for the fact that paycoin is far from dead. The dev team are pretty active trying to rewrite the bad stigma behind Paycoin. Those people are either idiots or scammers. You can't rewrite the zillions of coins that are in the possession of criminals who have shown in the past that they will dump the coins if there is any upward movement. the devs arent related to the Previous project. they simply took over because they didnt want to see their own investment crash. And its not a zillion coins. Just one. I'm not sure which of them are related because I lost track of who is on what team, but I know the guy who ran the data center that had zero hashlets, didn't give you guys coins, and didn't pay the electricity is still involved, as are many other GAW employees who have never given an accounting of their role in the scam. Anyone who was involved then, or is involved now, shouldn't be trusted. They were either in on it in the beginning, so they shouldn't be trusted for being scum, or they are too stupid to realize they were getting robbed, in which case they shouldn't be trusted for being idiots. And the zillions of coins I mentioned are all the xpy in the hands of those scumbags that they gave themselves in the beginning, or stole from the various sites that collapsed, or that they can just create out of thin air via staking now. The only reason xpy ever had any value is because a liar said he would buy them for 20 each, he's about to end up in jail, and the people holding the coins can and will just dump them if these "new" "developers" every make anything of this piece of shit. If you view it as another coin with a shit past and shittier future, Thats your choice, but you cant neglect the positive plans and or accomplishments that the coin made or will make in the future. What are these accomplishments? How can these "positive plans" overcome the fact that known scumbags have a ton of coins and will benefit if by some miracle actually happens? there are so many coins that came from nowhere that if anything does happen, they will just dump and screw you guys over. there is zero reason for these "great developers" that again, I know are either stupid and/or scumbags because they have been involved with this coin for a while, to continue with paycoin. If they have great plans and/or accomplishments, they would be better off starting over, but then they wouldn't have so many free coins, so there's no reason to do it. Stop falling for their bullshit, find something better to do with your time and money before you end up screwed over like everyone else involved in paycoins except the actual thieves. |
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I missed out on the paycoin phase , obviously they got too greedy or they just said 'if we are going to scam , at least scam as much as we can.'
They had a huge fan base , they did provide one of the greatest PR works in Bitcoin community , I have never seen that many people believe in one project , one guy as much as Garza and his team.
Their downfall break the trust of the community which was already weak. New Cloud Mine websites and miner sellers will going to have a difficult time getting new costumers trust them because the already hurtful community is now only going for the known hashnest , even then they possibly invest some but most will fear to go all in.
What a shame. This could have been a 100m$+ company.
No it couldn't have. You can't make 100m$ buying $4 bills for $20. The only things they ever did was sell hashpower that didn't exist and claim to buy $4 bills for $20. People fall for scams all the time because they think they will get rich, you don't have to go that far in the history of this forum to find people falling for every other piece of shit miner and ponzi scheme that ended up costing people tons of money. |
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How can one type of coin wallet gain control over another unrelated wallet? Surely you would have cross site security of some sort?
The Lucky7Coin wallet story is kind of a red herring, the real hack was the Bitcoin and Litecoin wallets doing unauthorized transactions. Rouge code that allows the execution of arbitrary commands is nothing new, and should be planned for.
Why would Crypsty keep millions of dollars worth of coins online in hot wallets? Surely any exchange operator knows that's a no no.
Why would they know or care that it was a "no no." It's not their money that's going to disappear. Oh I don't know, maybe because they're a fucking exchange whose bread and butter is in those wallets? I can't tell if yours is a serious question or just sarcasm. Perhaps you should use the [/s] or something similar. This is either outright scam or severe mismanagement or gross incompetence. Time will tell. Thier bread and butter wasn't in those wallet, their user bread and butter was in those wallets, they kept their bread and butter safe (or were able to keep going long enough after to make themselves safe, because I didn't hear any reports of staff going without salary to help make up the shortfall. Doesn't really matter which of those 3 you listed it is, the end result for users in all those cases is the same, "sorry for your loss." |
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Going through that whole charade with the rocket cup (in this very thread) is the kind of con only a female psychologist could come up with.
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Summary: Garza is a con man who took your money.
They sold more hashpower than they had, and when they were running out of coins to pay out they came up with paycoin, which had a bunch more lies and ways to take money.
Pretty much, except for the fact that paycoin is far from dead. The dev team are pretty active trying to rewrite the bad stigma behind Paycoin. Those people are either idiots or scammers. You can't rewrite the zillions of coins that are in the possession of criminals who have shown in the past that they will dump the coins if there is any upward movement. the devs arent related to the Previous project. they simply took over because they didnt want to see their own investment crash. And its not a zillion coins. Just one. I'm not sure which of them are related because I lost track of who is on what team, but I know the guy who ran the data center that had zero hashlets, didn't give you guys coins, and didn't pay the electricity is still involved, as are many other GAW employees who have never given an accounting of their role in the scam. Anyone who was involved then, or is involved now, shouldn't be trusted. They were either in on it in the beginning, so they shouldn't be trusted for being scum, or they are too stupid to realize they were getting robbed, in which case they shouldn't be trusted for being idiots. And the zillions of coins I mentioned are all the xpy in the hands of those scumbags that they gave themselves in the beginning, or stole from the various sites that collapsed, or that they can just create out of thin air via staking now. The only reason xpy ever had any value is because a liar said he would buy them for 20 each, he's about to end up in jail, and the people holding the coins can and will just dump them if these "new" "developers" every make anything of this piece of shit. |
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Summary: Garza is a con man who took your money.
They sold more hashpower than they had, and when they were running out of coins to pay out they came up with paycoin, which had a bunch more lies and ways to take money.
Pretty much, except for the fact that paycoin is far from dead. The dev team are pretty active trying to rewrite the bad stigma behind Paycoin. Those people are either idiots or scammers. You can't rewrite the zillions of coins that are in the possession of criminals who have shown in the past that they will dump the coins if there is any upward movement. |
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Where is Sir Revere anyway, did he get over the doxxing yet, it's a nice day when the bully, is bullied.
The fact that you think he's the bad guy instead of the people that robbed you shows more about your intelligence than the names you are calling him. |
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Summary: Garza is a con man who took your money.
They sold more hashpower than they had, and when they were running out of coins to pay out they came up with paycoin, which had a bunch more lies and ways to take money.
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yes who will continue to trade with this bastards? and stop begging for your money. it is yours and some big bird thinks he can help himself to it then there is only 1 way to deal with this.
what is your solution? bankruptcy -> 100% loss  (ok, maybe 95%) You keep saying this like the people making the decision will care about you or this option. No shit you would rather get back half than zero, for this to be a viable idea you need to give a reason why they guy who stole (or lost) your coins to give you back half instead of giving you back zero. Why on earth do people think cryptsy will be able to make back any more money to pay you guys? they couldn't do it before admitting that they "lost" your coins, how do you expect them to make back the money now that they are claiming to be too incompetent to actually run an exchange? |
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There are several different images when they take a site, depending on who does the seizing and for why. Ore-mine.org has the same image as libertyreserve.com, which was seized. |
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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.
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. |
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How can one type of coin wallet gain control over another unrelated wallet? Surely you would have cross site security of some sort?
The Lucky7Coin wallet story is kind of a red herring, the real hack was the Bitcoin and Litecoin wallets doing unauthorized transactions. Rouge code that allows the execution of arbitrary commands is nothing new, and should be planned for.
Why would Crypsty keep millions of dollars worth of coins online in hot wallets? Surely any exchange operator knows that's a no no.
Why would they know or care that it was a "no no." It's not their money that's going to disappear. |
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Cryptsy has failed to explain why they aren't returning the millions of alts still stored in its cold-storage coffers.
Why not return those coins to the rightful owners?
Because why should they get paid back while the BTC or LTC holders get screwed? If they really are going to declare bankruptcy having a certain coin won't move you up the priority list for getting paid back. Those people probably didn't lose enough money to cause cryptsy any trouble, so why piss off the people who did lose enough money to cause trouble any further? |
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Hi All,
I would suggest that ALL coins would make a version 2. Why? Cryptsy is holding a lot of small coins, KARMA, LOT, MOON, LEAF, ....
maybe they have a supply of 80% of all the outstanding coins, so we should all make KARMA2, LOT2, MOON2, LEAF2,... type of coins and swap the coins that aren't on cryptsy.
This will mean Cryptsy wouldn't be able to dump their coins on other markets and make another few millions and it can give the current owners of those coins maybe some money back if they were able to withdraw at least a few coins...
How are the people doing this fork going to make sure not to give any coins to Cryptsy? |
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So you leant money to a guy to buy money making machines, and expected him to buy the machines and give you the money back? Buying miners is a risky thing, why would you add in several more places to get screwed over? |
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