Cryptsy Owns Paycoin Hyperstaking Prime Controller

[tokeweed]

During a community hangout organized by the Paycoin Foundation, a surprise announcement was made that one Prime Controller is being held by digital currency exchange Cryptsy. The transaction was also posted about on the Paycointalk forums. According to that post, it seems plausible that the Prime Controller was given to get Cryptsy to update to the new Paycoin wallet.

Prime Controllers are a feature unique to Paycoin, although calling them a feature is a bit like saying a burning sensation is a feature of gonorrhea, it may technically be true but that doesn’t mean it is a feature appealing to anyone.

Prime Controllers are essentially wallets that stake at a higher rate than regular wallets. Originally, that was going to be 10% compared to a normal wallet’s 5%. It was eventually revealed that some Prime Controllers were staking at a rate as high as 350% compounded interest.

http://www.miningpool.co.uk/breaking-cryptsy-owns-hyper-staking-paycoin-prime-controller/

[inBitweTrust]

This makes them directly complicit in the fraud instead of merely indirectly profiting off it. They are dead to me and should be avoided and ostracized like the plague. To those only with selfish interests .... this will also expose you to audits , subpoenas and investigations by many dangerous state actors who are currently investigating paycoin. Cryptsy is exposing you to this liability by accepting a prime controller.

New Plottwist?

If this is true, then cryptsy is now part of the paycoin fraud - and dead to me. I won't touch cryptsy anymore, not even with a 10 foot pole.  
Can someone confirm that cryptsy now holds a "prime controller" of the paycoin network?

they confirmed it here https://bitcointalk.org/index.php?topic=857670.msg11190036#msg11190036 - so yeah, it's true.

[Snail2]

This makes them directly complicit in the fraud instead of merely indirectly profiting off it. They are dead to me and should be avoided and ostracized like the plague. To those only with selfish interests .... this will also expose you to audits , subpoenas and investigations by many dangerous state actors who are currently investigating paycoin. Cryptsy is exposing you to this liability by accepting a prime controller.

Cryptsy is a profit oriented exchange and mining company. Of course they obtained a prime controller. They have to pay for a lot of stuff and I guess their mining operations are barely profitable today, so getting involved with everything what can provide liquidity for them is kinda natural approach.

[muddafudda]

This makes them directly complicit in the fraud instead of merely indirectly profiting off it. They are dead to me and should be avoided and ostracized like the plague. To those only with selfish interests .... this will also expose you to audits , subpoenas and investigations by many dangerous state actors who are currently investigating paycoin. Cryptsy is exposing you to this liability by accepting a prime controller.

Cryptsy is a profit oriented exchange and mining company. Of course they obtained a prime controller. They have to pay for a lot of stuff and I guess their mining operations are barely profitable today, so getting involved with everything what can provide liquidity for them is kinda natural approach.

Involving yourself with a scam to stay solvent. Explain to me again how it all works?

[inBitweTrust]

This makes them directly complicit in the fraud instead of merely indirectly profiting off it. They are dead to me and should be avoided and ostracized like the plague. To those only with selfish interests .... this will also expose you to audits , subpoenas and investigations by many dangerous state actors who are currently investigating paycoin. Cryptsy is exposing you to this liability by accepting a prime controller.

Cryptsy is a profit oriented exchange and mining company. Of course they obtained a prime controller. They have to pay for a lot of stuff and I guess their mining operations are barely profitable today, so getting involved with everything what can provide liquidity for them is kinda natural approach.

It shows desperation while other exchanges are delisting paycoin. A clear sign to move your coins away and into a more ethical and liquid exchange that doesn't need to make such compromises.

[tokeweed]

Right.. Wrong, whatever.  The question is, will Cryptsy be liable? 

[inBitweTrust]

Right.. Wrong, whatever.  The question is, will Cryptsy be liable? 

They are already liable in the court of public opinion , probably too insignificant for any agencies to go after , but certainly will bring extra scrutiny to its users and themselves.

[tokeweed]

Right.. Wrong, whatever.  The question is, will Cryptsy be liable? 

They are already liable in the court of public opinion , probably too insignificant for any agencies to go after , but certainly will bring extra scrutiny to its users and themselves.

If no one will go to prison, it won't matter. 

[MicroGuy]

I understand that Cryptsy has the best legal council available. They are unlikely to do anything that would expose them to high risk or unnecessary liability.

In terms of reliability, they are one of the most stable and reputable cryptocurrency exchanges on earth at present.

[inBitweTrust]

I understand that Cryptsy has the best legal council available. They are unlikely to do anything that would expose them to high risk or unnecessary liability.

In terms of reliability, they are one of the most stable and reputable cryptocurrency exchanges on earth at present.

This is a very odd statement to make based upon the evidence to the contrary. Do you have any personal investment , employement or involvement in Cryptsy?

[Este Nuno]

I understand that Cryptsy has the best legal council available. They are unlikely to do anything that would expose them to high risk or unnecessary liability.

In terms of reliability, they are one of the most stable and reputable cryptocurrency exchanges on earth at present.

I highly doubt their lawyers were made aware of this. Five minutes of googling Paycoin and they'd be all over them telling the to get as far away as they can.

[JackRipper]

Right.. Wrong, whatever.  The question is, will Cryptsy be liable?  

Liable for what? Right or wrong, it's not illegal.

[tokeweed]

Right.. Wrong, whatever.  The question is, will Cryptsy be liable?  

Liable for what? Right or wrong, it's not illegal.

Exactly what I was asking.  I don't care what's right or wrong...  But are they liable?  If not, then time to move on then.

[inBitweTrust]

Right.. Wrong, whatever.  The question is, will Cryptsy be liable?  

Liable for what? Right or wrong, it's not illegal.

Exactly what I was asking.  I don't care what's right or wrong...  But are they liable?  If not, then time to move on then.

There is no way of knowing because in financial law the legal regulations and requirements are deliberate made ambiguous and open for interpretation. This is to insure that some bank or bad actor doesn't find a loop hole and game the system and to give judicial and regulatory empowerment for them to basically seize and penalize anyone that steps out of line.

So , yes , they are liable if they get too much attention or upset the wrong people and being that paycoin is already being investigated by all these alphabet agencies I would be extremely careful.

[Este Nuno]

Yes, Paycoin is cancer and Cryptsy is incredibly stupid and greedy to have any level of involvement with them.

[Mi5h0]

Well, I never had an issue with Crypsty before however if they now have a Prime Controller and openly support Paycoin scam despite what is currently happening (investigations, etc.)...
I think Bittrex may help themselves out and delist XPY completely. Doing that would gain them a lot more reputation.

[kelsey]

I understand that Cryptsy has the best legal council available. They are unlikely to do anything that would expose them to high risk or unnecessary liability.

In terms of reliability, they are one of the most stable and reputable cryptocurrency exchanges on earth at present.

This is a very odd statement to make based upon the evidence to the contrary. Do you have any personal investment , employement or involvement in Cryptsy?

its the only exchange that hasn't delisted the shitcoin he is constantly peddling 

[tokeweed]

I understand that Cryptsy has the best legal council available. They are unlikely to do anything that would expose them to high risk or unnecessary liability.

In terms of reliability, they are one of the most stable and reputable cryptocurrency exchanges on earth at present.

This is a very odd statement to make based upon the evidence to the contrary. Do you have any personal investment , employement or involvement in Cryptsy?

its the only exchange that hasn't delisted the shitcoin he is constantly peddling 

Maybe Cryptsy has a thing for Paycoin?  Like Polo has a thing for XMR.

[Nxtblg]

I understand that Cryptsy has the best legal council available. They are unlikely to do anything that would expose them to high risk or unnecessary liability.

From my admittedly sketchy knowledge of the law, Cryptsy might well be joining the victims by suing Garza. I do know of a corporate-fraud case where a mutual- or hedge-fund operator showed up in court and climbed into the witness box to make a victim's statement. He was a witness for the prosecution in that capacity, brought in to show (or claim) damage was done by the defendants.

At the very least, unless it's thrown out of court, Cryptsy suing Garza would be a close-to-ironclad defense against any lawsuit against it (except for negligence.)

[Libertymind]

There are a lot of lawyers in here. No one has answered the question of what Cryptsy is supposed to be liable for. Or am I just loosing my mind.

What are they supposed to by liable for?

Its funny whenever someone asks this question they are trolled. Is this just a troll a thread?