Announcement

Cryptsy has had problems for some time now and it’s time to let everybody know exactly why.  These problems were NOT because of any recent phishing attacks, or even a ddos attack, nor does it have anything to do with me personally.

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.  It does not appear that this was the original developer for LK7, as on 5/22/2014, we received this message from the new developer who wanted to maintain the codebase:

—

Hello,

Lucky7Coin is not maintained and I would like to take care of it. I have announced that on bitcointalk.org in Lucky7Coin thread. You’re the only exchange for this coin and I hope you will let me take care of it. I’m responsible. You don’t have to be afraid of errors or forks. I’m developing multipool and I know bitcoin internals and protocol.

https://bitcointalk.org/index.php?topic=295157.msg6861797#msg6861797

For a start I’ve changed irc network, so clients could synchronize blockchain. Please upgrade as soon as you can.

Github repo:
https://github.com/alerj78/lucky7coin

Branch “master” will always be for stable version, branch “devel” could be dirty. In a 2-3 weeks I’ll release new version with p2pool support and checkpoints. Before that I’ll contact you to check few blocks hashes for checkpoints and make sure there is no fork.

I hope we can cooperate and make this coin live again!

Jack

—

These are the approximate figures taken:
Bitcoin:  13,000 BTC
Litecoin:  300,000 LTC

This of course was a critical event for Cryptsy, however at the time the website was earning more than it was spending and we still have some reserves of those cryptocurrencies on hand.   The decision was made to pull from our profits to fill these wallets back up over time, thus attempting to avert complete closure of the website at that time.   This worked fine for awhile, as profits decreased due to low volume and low Bitcoin prices, we would adjust our spending accordingly.  It wasn’t until an article from Coinfire came out that contained many false accusations that things began to crumble.   The article basically caused a bank-run, and since we only had so much in reserves for those currencies problems began.  

Our current customer liabilities for BTC is around 10,000 BTC, so as you can see we would like to see the Bitcoins returned for both our users and for ourselves.

Here are the transaction details from the Bitcoin wallet:

https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

As you can see,  2014-07-29 13:17:36 is when the event occurred.   A very interesting fact here, however, is that those Bitcoins have not moved once since this happened.    This gives rise to the possibility they can be recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.

If you happen to be the perpetrator of this crime, and want to send the coins back no questions asked, then you can simply send them to this address:  

1KNi4E4MTsF7gfuPKPNAbrZWQvtdQBTAAa

If they are returned, then we will assume that no harm was meant and will not take any action to reveal who you are.  If not, well, then I suppose the entire community will be looking for you.

Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting.   At one time we had a open communication with Secret Service Agent Shaun Bridges on an unrelated matter, but I think we all know what happened with him – so he was no longer somebody we could report this to.    Recently I attempted to contact the Miami FBI office to report this, but they instead directed me to report it on the I3C website.  I’ve not heard anything from them.

I think the only real people who can assist with this are the people of the Bitcoin community itself.

Trades and withdrawals will be suspended on the site indefinately until some sort of resolution can be made.

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.

- or –

2. Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.

- or –

3. If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.

I’m obviously open to any other ideas people may have on this.

    Jan 14th, 2016

Abyss,
I now registered, tested and traded on http://exchanged.i2p.xyz and it seems to work. However, I need buttons like all-in and calculations.

How do I get the raw transactions? As far a I can see, Cryptsy and CEX.IO only show TrxIDs and the receiver address (which in all three cases is ASoVC4BfzXKvuCp96ckq41QsxnWLh3gxnx).

Abyss, you should provide a read-only view for your exchange, so that anyone could inspect the buys/sells. A simple web interface should be enough (from where you could promote your I2P platform). Maybe there is such an interface already? If not, it could increase interest

I'm sorry for promoting vircurex all the time, but they actually ARE trying to get things pushed forward. They had wallet services offline for two or three weeks, but went back to business and that's the only time I have had problems with withdrawals. Vircurex now also claims they have paid back some of the frozen funds for year 2015 (cannot be much, but anyways). Vircurex just reloaded their ANC blockchain and they actually DO something to get deposits/withdrawals working. Then we have Craptsy that is the most fraudulent exchange there is atm who claims that the blockchain has problems...

However, consider trading ANC there. It works. If you are in doubt, you could just use very small amounts. I never exceed a total of 1BTC over there and fees for withdrawing ANC are very low (0.1 ANC). I'm not affiliated with vircurex in any way, but the more exchanges there are for a coin, the more valueble the coin usually gets.And yes, I know that Abyss will start yelling at me once again, but actually, I am way too lazy to install I2P on every computer I have and I guess most people won't do that unless they actually really are in need to be very anonymous.

When the Blockchain is damaged how is it useful to use i2p, how does this save ANC ?

I haven't sold any of mine in a LONG time. I used to play the market to build up more... and then they crashed. I'm not sure if it's a good idea to liquidate at this point or remain hopeful that something can be done to infuse value into them again. Feel kind of stupid... had an offer when they were 120 sat still to buy all of mine at 110 off the market. Declined because I had faith in the project. Now they're almost valueless, .

I restarted the discussion on future Devcoin price, previously titled: "Good time to buy Devcoins!" now is: "Devcoin price forecast".

https://bitcointalk.org/index.php?topic=1275749

Everyone's forecast is welcome!

did you check here:?

http://abe.darkgamex.ch:2751/chain/Anoncoin

I have never experienced any problems with Vircurex before (except DGC withdrawals), but now, a few days a go, vircurex gives this message "Unable to process the request right now. Please try again later." for ANY coin I am withdrawing. This could be something temporary, but I'd like to hear from other people still actively trading at the platform (the few left), have you got the same message the last days. Just to make sure it is not only me been "suspended".

I know that most people think that Vircurex is scam and I have been careful not to deposit too much coins (max a bitcoin, but that is still a bitcoin).

hey
in the last few weeks i made 5 anc withdrawal from 4 different exchanges,
they all gave me txid which dosnt appear in anc explorer
is there any problem with the network ?