CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[Gleb Gamow]

PS: I wonder if I should call my friends at Vault Networks and tell them about this massive fuck up :/

I thought you're friends with the Army? Tell them to nuke Cryptsy and be done with it.

Such talk 'bout nuking, vulturing and feathering of late. 

[Gleb Gamow]

https://www.walletexplorer.com/txid/fbc7bbc9fdbf09af57037e11869a3362f6bd71a2395d6f1089fc16605d5cb18e (this directly funded Cryptsy's 100 BTC wallet address which a majority of the BTC where heist - https://www.walletexplorer.com/txid/eb3ff622ba9cadbffb216eef61e9e3122c7c27f6b40751ba91a64331c4367496)

-->

https://www.google.com/search?q=1DiHDQMPFu4p84rkLn6Majj2LCZZZRQUaa&rlz=1C1CHFX_enUS549US549&ei=M6-fVrjmF4iXmwHI9bCoDQ&start=10&sa=N&biw=1093&bih=508

-->

https://bitcointalk.org/index.php?topic=495713.msg5460513#msg5460513 (search this post for 1DiHDQMPFu4p84rkLn6Majj2LCZZZRQUaa)

I'm now goin' to dedicate an hour or more of my time to showcase 1AwhSyur4Bx45BSCevxgMddwgmxyQG53SH forward to the theft.

[Melech]

How long until Vern posts the rest of the stolen coins from Craptsy?

He said he was going to post the other stolen altcoins on the blog...

Why should this take over a week?

Shouldn't they have researched what was "stolen", 18 months ago?

[volyova]

How long until Vern posts the rest of the stolen coins from Craptsy?

He said he was going to post the other stolen altcoins on the blog...

Why should this take over a week?

Shouldn't they have researched what was "stolen", 18 months ago?

Yes, they should.

[Gleb Gamow]

How long until Vern posts the rest of the stolen coins from Craptsy?

He said he was going to post the other stolen altcoins on the blog...

Why should this take over a week?

Shouldn't they have researched what was "stolen", 18 months ago?

It's more funner for the community to do research 18 months after the fact than have a proper investigation conducted by legal authorities immediately after the reduced holdings event.

[Xandrah]

How long until Vern posts the rest of the stolen coins from Craptsy?

He said he was going to post the other stolen altcoins on the blog...

Why should this take over a week?

Shouldn't they have researched what was "stolen", 18 months ago?

Mostly because they are trying to pull whatever they can out of their asses.

The whole thing is a front.

[JudgeDredd_Cryptsy]

How does one join the class action suit ?

[tomothy]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

[Arrakeen]

So did vern get his 1000 BTC for returning the BTC he stole? 

[Melech]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

Dash wallet has no funds, so you couldn't withdraw Dash even if they did enable it...

You do have a good point though... if they are in bankruptcy, the assets should be seized and divided... people should not be able to withdraw them right now... their server should be seized as evidence...

[Gleb Gamow]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

The class action suit is not alleged, and the bankruptcy depicted earlier was probably just Paul Vernon and Lorie Nettles personal Chapter 13, not Cryptsy.

[Gleb Gamow]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

Dash wallet has no funds, so you couldn't withdraw Dash even if they did enable it...

You do have a good point though... if they are in bankruptcy, the assets should be seized and divided... people should not be able to withdraw them right now... their server should be seized as evidence...

Paul's still waiting to hear back from the 13C [sic] folks he filed with per the FBI's instructions, whereupon they'll then seize the exchange right after they're finished with their coffee and donuts.

[bitcoinpete]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

Dash wallet has no funds, so you couldn't withdraw Dash even if they did enable it...

You do have a good point though... if they are in bankruptcy, the assets should be seized and divided... people should not be able to withdraw them right now... their server should be seized as evidence...

Dash wallet has no funds? this is bad news most of my coin holding on cryptsy are dash

[KeyserSozeMC]

The first person to correctly count the obvious errors in the following article wins an Oreo cookie: https://www.hackread.com/cryptsy-hacked-bitcoin-worth-usd-6-million-stolen/

Now, there is a bounty over Lucky7Coin’s developer’s head: 1000BTC promised to anyone who can trace the stolen money.

There's two, leaving it for yous to [easily] hunt the others in the short article. Hint: It's over six errors in total, which is amazing given that it's a fresh article based on other articles penned over the past twice days.

The LK7 dev is muddafudda. Whether or not he is Paul Vernon or one of Bitcoin's higher ups/ early adopters is to be determined...

EDIT

A reply of yours, quoted below, was deleted by a Bitcoin Forum moderator. Posts are most frequently deleted because they are off-topic, though they can also be deleted for other reasons. In the future, please avoid posting things that need to be deleted.

We should be seeing more alt/sockpuppet carnage by now...

Heres a few more names for you guys to chew on..

Matt Carsen aka:
borito4 https://bitcointalk.org/index.php?action=profile;u=10897
bobsag3 https://bitcointalk.org/index.php?action=profile;u=144143
hendo420 https://bitcointalk.org/index.php?action=profile;u=25129

TECHSHARE https://bitcointalk.org/index.php?action=profile;u=15728

BayAreaCoins https://bitcointalk.org/index.php?action=profile;u=137773

SaltySpitoon https://bitcointalk.org/index.php?action=profile;u=38894

organofcorti https://bitcointalk.org/index.php?action=profile;u=14118

KeyserSozeMC https://bitcointalk.org/index.php?action=profile;u=166959

Wolf0 https://bitcointalk.org/index.php?action=profile;u=80740

BitcoinEXpress https://bitcointalk.org/index.php?action=profile;u=29445

Carlos Perez aka:
FrictionlessCoin https://bitcointalk.org/index.php?action=profile;u=127521
solracx https://bitcointalk.org/index.php?action=profile;u=87434

Carsen Klock aka:
Carsen https://bitcointalk.org/index.php?action=profile;u=128350
dreamcoin https://bitcointalk.org/index.php?action=profile;u=327214

Then theres THIS shitcoin disturber ..
HippieTechIsaCUNT https://bitcointalk.org/index.php?action=profile;u=213586

edit

oops .. I almost forgot about muddafudda's favourite candygirl/sock. lol
Crestington https://bitcointalk.org/index.php?action=profile;u=181127

tip: Cresty's Paycon is one of the many Cryptsy inhouse jobbies available over at Stakeminers.

JAN 18 2016 EDIT
iGotSpots https://bitcointalk.org/index.php?action=profile;u=108913

Why are you involving me in this shitstorm, feg?

Why not ? Your lying and scamming MALAKISMENO ass has earned you this dishonor.

If it walks like a craptsy scammer... and it quacks like a crapsty scammer... then.. IT MUST BE A FUCKING CRAPTSY SCAMMER.  

oopsie again.. I also forgot to add iGotspots. lmao

Ho-mo.

ALL YOUR CRYPTSY BEATCOIN BELONG TO VERN!

If it really was you (a cryptsy insider) or some other craptsy insider who RAT'd /robbed me of what little crypto I had, then you are correct ( for once in your shitcoinstained life) magas.

PSH. I never got into malware spreading, because I'm not a lowlife, I make money with my creativity and ideas, not by infecting suckers like you, lol

Beat me.

https://thewaterproject.org/community/profile/aleksandar-vujanov

feg.

Also, I have around 6k DASH in there, so don't talk shit and put oil in the fire, no lifer.

[ThePhwner]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

Dash wallet has no funds, so you couldn't withdraw Dash even if they did enable it...

You do have a good point though... if they are in bankruptcy, the assets should be seized and divided... people should not be able to withdraw them right now... their server should be seized as evidence...

Dash wallet has no funds? this is bad news most of my coin holding on cryptsy are dash

Doesn't look like any of the wallets have funds, tbh. If they did people would be getting withdrawals for the coins that were "opened up," and those aren't coming through either. And given that DASH was one of the top "stolen" coins I wouldn't expect to see that again.

[tomothy]

Do you have information regarding stolen Dash. I saw they stated BTC & LTC stolen but saw no other coins referenced. Thanks in advance.

[Gleb Gamow]

I swear to god, this is insane. How has nobody filed an injunction to prevent Cryptsy from doing anything. Immediately, all assets should be frozen so a proper accounting can be made and essentially divided up by account owners and their proportionate assets. The fact that they just opened up wallets again!? And the Dash wallet was not opened!? None of this makes sense. This is ludicrous. Does anyone know if Silver Law Firm has taken any steps to make any recent motions for injunctive relief? Regardless of this alleged class action suit, if cryptsy has no funds, class members are totally screwed. I'm not advocating that one shouldnt join the suit and i'm not a lawyer and this isn't legal advice but I do watch a lot of law and order and if you have some money on the site it could make sense to pay for someone to ask for an injunction. This is made especially funky in light of vernon applying for bankruptcy. I'm not sure how that wouldn't stay any current actions or how it would allow cryptsy to continue to do business. None of this makes any sense except the users are gonna get taken to the cleaners, more than they already have been... /sigh I can't think about this. I don't think I have coins left and their are some tempting deals but it seems just like good money after bad to try and deposit and withdraw. The timing of events is so sketchy sleazy. So he asks for bankruptcy THAN DECLARES THEY WERE HACKED FIVE DAYS LATER!? WTF WERE YOU DOING IN THE MEAN TIME? (hiding assets maybe?). Rabble rabble rabble.

Dash wallet has no funds, so you couldn't withdraw Dash even if they did enable it...

You do have a good point though... if they are in bankruptcy, the assets should be seized and divided... people should not be able to withdraw them right now... their server should be seized as evidence...

Paul's still waiting to hear back from the 13C [sic] folks he filed with per the FBI's instructions, whereupon they'll then seize the exchange right after they're finished with their coffee and donuts.

"Boss, how much deeper should I dig this hole I'm diggin' for myself?"

[Melech]

Do you have information regarding stolen Dash. I saw they stated BTC & LTC stolen but saw no other coins referenced. Thanks in advance.

There is this video from August 2014:
https://www.youtube.com/watch?v=dJONR_UL1rw

And this guy (Otoh):
https://www.reddit.com/r/Bitcoin/comments/3rvl2a/cryptsy_exchange_warning_unable_to_withdrawal/cyja4xe
https://bitcointalk.org/index.php?topic=421615.msg12913456#msg12913456

It has not (yet) been confirmed on blog.cryptsy.com, but...

Where is the proof the 450k stolen Dash have been "sold off already?"

Follow the blockchain?  They never once bothered to mix the coins...
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

Craptsy: 279k
https://chainz.cryptoid.info/dash/address.dws?Xqi7sWthYKFPCK3KHcKq8BqY9vMcWy4r3t.htm

Mintpal: 40k
https://chainz.cryptoid.info/dash/address.dws?XwGVVdiVsdXQKZzuMnez4Y3NhpnadxSDsH.htm

Various exchanges: 202k (Craptsy, Craptsy, PoloniEx, GHash.IO, Bitfinex, Bitfinex)
https://chainz.cryptoid.info/dash/address.dws?XxpMtTNa1RFuSya99A427mTKayGjYQys1v.htm

Unknown: 25k
https://chainz.cryptoid.info/dash/address.dws?XbjZ2Tv3kiUFdaKrjn2xYrxR3JEwmcWcaN.htm

Looks like they ran out around Nov 19, 2015 (last 6k from the 456k sent to Craptsy):
https://chainz.cryptoid.info/dash/tx.dws?2116889.htm

[DrxGxr]

HAVE YOU REPORTED HERE ?https://forms.cftc.gov/_layouts/PublicForms/TipsAndComplaints.aspx

[Gleb Gamow]

I'm pretty sure we can all agree that 1AwhSyur4Bx45BSCevxgMddwgmxyQG53SH was Cryptsy's hot wallet of sorts supposedly used to remit bitcoins to clients requesting withdraws.

https://www.walletexplorer.com/address/1AwhSyur4Bx45BSCevxgMddwgmxyQG53SH



It's the last 100 BTC tx I'll be concentrating on (taxing my memory, revisiting later the 60 BTC transfer, thinking out loud that it, too, or a large fraction thereof, is now part of the plunder - not relevant to this exposé).

Timestamp (GMT)                              BTC Transferred

2014-07-12 19:10:04:  1AwhSyur4Bx45BSCevxgMddwgmxyQG53SH funded with 100 BTC (Saturday [early] afternoon EST)
2014-07-12 23:33:36:  1.02299874

2014-07-13 16:01:29:  0.01024058 BTC (unspent)

2014-07-14 09:32:21:  0.0315 (Bter.com-old)
2014-07-14 18:53:50:  0.148
2014-07-14 20:34:22:  0.05307795 (BTC-e.com-old)

2014-07-16 04:06:15:  0.03123923 (MtGoxAndOthers)
2014-07-16 13:38:34:  0.60829732 (Bittrex.com)
2014-07-16 14:10:17:  0.01203216
2014-07-16 15:57:16:  0.01737805 (BTC-e.com-old)
2014-07-16 17:05:39:  0.11907511
2014-07-16 17:46:28:  0.01184453
2014-07-16 19:20:07:  3.2995 (Bitstamp.net-old)
2014-07-16 21:45:25:  0.41448053
2014-07-16 22:27:45:  0.2495
2014-07-16 23:01:56:  0.02489272
2014-07-16 23:40:36:  0.21554425 (LocalBitcoins.com)

2014-07-17 00:08:08:  0.0495 (CloudBet.com)
2014-07-17 06:53:15:  0.07212278 (Bittrex.com)

2014-07-21 16:07:07:  0.29143383
2014-07-21 21:30:01:  0.97388783

2014-07-22 09:20:42:  0.36058586 (Bittrex.com)

2014-07-24 13:00:44:  7.36520147 (BTC-e.com-old)
2014-07-24 14:45:28:  0.0144625 (BitKonan.com)
2014-07-24 17:15:26:  0.11959777 (Bitstamp.net-old)

2014-07-26 14:38:08:  0.4995
                     &            83.97910679 (Cryptsy.com-old) 1Q8uWQdBWSX1CCPGAh71BTZ7F1ruthtnej

2014-07-29 08:54:46:  83.97910679 (el bandido) https://www.walletexplorer.com/txid/e68f52a38f58e71b951a08650e20aea3f62f7331a3f548e99181f6dbf1cc1d51 (The theft was kind enough to leave 0.0102649 BTC change after transferring out 100 BTC which Cryptsy added to the change used for subsequent payouts while the thief's trail had yet to go cold, with a few steps up the chain sending 1 BTC to SilkRoad2Market)

"That's some Hot Wallet!"

Remember the scene in Men in Black where Will Smith's character is stepping on the cockroach cousins of Edgar the Bug causing him to squirm? That's what Paul Vernon was like each time bitcoins were transferred off Cryptsy to addresses not part of his personal coffer(s).

A total of 25 transactions amounting to only 16.02089321 BTC were conducted between July 12, and July 26, 2014, inclusive. I contend that around the former date the stage was being set for the inside job.

I penned the entire above - sans pay - while sitting on my porcelain throne taking a shit, while those in the media sitting on blue balls that their asses are cupped to are paid to pen articles about Cryptsy's heist littered with grammatical errors and misinformation. That, and the first time a periodical gets wind (no pun intended) of a defamation suit, they're quick to redact content complete with an apology and blowjob offering, promising they'll be more mindful next time.