CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[frank2]

this is famous cryptsy bot

it can transfer single amount of altcoins/bitcoin repeatedly within single block

[–]MaChiseMo [score hidden] 8 hours ago*

At 2016-01-24 02:31:21, 9612 btc was progressively sent over and over at a decreasing rate over thousands of transactions until 7906 was left. Theft and laundering sounds about right.

Edit: Here you go, it was 10000 btc 1.5 days ago from 376 other addresses: https://www.blocktrail.com/BTC/address/18SwPkgUHFo8QLh5fMcchKvmUVrFNxXF6B/transactions Surely this is Cryptsy-related?

[–]jamaicanbind [score hidden] 7 hours ago

It looks like it was the same 9000 or so coins sent over and over to different addresses. A mixer maybe?

https://blockchain.info/address/1AqqVCAhKwxxeTwPhpYxwHNW8tPzVztY23

[–]_madmat 1 point 43 minutes ago

The 5.7 million btc in one block are just 10,000 btc moving and moving. Today, you could spend unconfirmed outputs so you could move the same coins many times in the same block. I think i found the initial transactions : https://blockchain.info/fr/address/18SwPkgUHFo8QLh5fMcchKvmUVrFNxXF6B

Good luck to go further back, this has been mixed an remixed.

[1714990205]

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[1714990205]

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[1714990205]

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[1714990205]

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[1714990205]

1714990205

[thunderjet]

this is famous cryptsy bot

it can transfer single amount of altcoins/bitcoin repeatedly within single block

[–]MaChiseMo [score hidden] 8 hours ago*

At 2016-01-24 02:31:21, 9612 btc was progressively sent over and over at a decreasing rate over thousands of transactions until 7906 was left. Theft and laundering sounds about right.

Edit: Here you go, it was 10000 btc 1.5 days ago from 376 other addresses: https://www.blocktrail.com/BTC/address/18SwPkgUHFo8QLh5fMcchKvmUVrFNxXF6B/transactions Surely this is Cryptsy-related?

[–]jamaicanbind [score hidden] 7 hours ago

It looks like it was the same 9000 or so coins sent over and over to different addresses. A mixer maybe?

https://blockchain.info/address/1AqqVCAhKwxxeTwPhpYxwHNW8tPzVztY23

[–]_madmat 1 point 43 minutes ago

The 5.7 million btc in one block are just 10,000 btc moving and moving. Today, you could spend unconfirmed outputs so you could move the same coins many times in the same block. I think i found the initial transactions : https://blockchain.info/fr/address/18SwPkgUHFo8QLh5fMcchKvmUVrFNxXF6B

Good luck to go further back, this has been mixed an remixed.

if you carefully look in blockchain you will see that about 10000 BTCs are branching in large number of small transactions,but in each txs it is always single address - that is common behaviour for paying users by large exchanges.They use option - spend unconfirmed change to broadcast huge number of txs in single block - so in this case it is not laundering - laundering can be spotted as immediate branching of initial transaction on large number of addresses,which also continous to branch in each step after

[frank2]

normal exchange ?

1.this never had been done before in BTC blockchain on this scale : blockchain volumes up to 1000% or higher this weekend

2.BTC quiet this weekend on exchanges

3.if somebody would like to make record BTC washing - would prefer cold winter weekend ? OK ?

4.did not follow cryptsy bot this time, but seen many times at work at other altcoins : reduced amount is usually same with each transfer
for instance: 10.000 bot splits into 9800+200
next hop : splits 9800 into 9600+200
and so on

it is not really similar to any legitimate payments by any exchange
- why each time is exactly the same amount reduced ?
- why these transactions of this type MUST concentrate in one block?
- and - as seen in altcoins blockchains - such bot behavior for sure was not connected with any payments with this or that altcoin

this bot has to be specially manufactured for mixing

actually, in altcoins is not very typical that unconfirmed amount can be respent in the same block

that confirms suspicions, that Mullick wallets for altcoins were hacked super-wallets
such Cryptsy wallet had much more possibilities that ordinary altcoins user had no access ( as : respending unconfirmed altcoins within single block )

higher in this thread : was checking DASH stolen wallet address:

this stolen DASH wallet underwent similar bot-splitting

[thunderjet]

this is famous cryptsy bot

it can transfer single amount of altcoins/bitcoin repeatedly within single block

[–]MaChiseMo [score hidden] 8 hours ago*

At 2016-01-24 02:31:21, 9612 btc was progressively sent over and over at a decreasing rate over thousands of transactions until 7906 was left. Theft and laundering sounds about right.

Edit: Here you go, it was 10000 btc 1.5 days ago from 376 other addresses: https://www.blocktrail.com/BTC/address/18SwPkgUHFo8QLh5fMcchKvmUVrFNxXF6B/transactions Surely this is Cryptsy-related?

[–]jamaicanbind [score hidden] 7 hours ago

It looks like it was the same 9000 or so coins sent over and over to different addresses. A mixer maybe?

https://blockchain.info/address/1AqqVCAhKwxxeTwPhpYxwHNW8tPzVztY23

[–]_madmat 1 point 43 minutes ago

The 5.7 million btc in one block are just 10,000 btc moving and moving. Today, you could spend unconfirmed outputs so you could move the same coins many times in the same block. I think i found the initial transactions : https://blockchain.info/fr/address/18SwPkgUHFo8QLh5fMcchKvmUVrFNxXF6B

Good luck to go further back, this has been mixed an remixed.

I tracked backward this address txs - 1AqqVCAhKwxxeTwPhpYxwHNW8tPzVztY23
  and it goes to address - 1HSV4NUkCtJ4wdK79peu2wGjAxEe3N6Yu3 - all inputs to this address came from Huobi.

Later I will see the other one.

[GoldSeal]

SO is cryptsy going to release the coins or what? it's been a few days...

[frank2]

let's assume this 10.000 wallet is really from Huobi

1.higher in this thread there were allegations that all exchanges ale tightly connected

2.huobi is most secretive of exchanges from China, no public shows, Huobi profile on Bitcointalk - last post Feb, 2014

3.as to huobi - only guesses as for instance:
Okcoin/ Huobi is owned by China Government
https://bitcointalk.org/index.php?topic=1311139.0

4.where are best friends of BigVern? in China (it is where to he had escaped)
now we can safely assume that his best friends are at Huobi

5.with BV military intelligence background : he could be cautious and already parked 10.000 with his anonymous close friends at Huobi
but now with new heat - this type of security would be not enough

BV now wants 100% perfect wash not 99.9%

needs fresh mixing

best possible mixing available = with use of existing exchange which has thousands and thousands of legitimate wallets anyway

similar perfect wash stories were in all altcoins exchange closings : starting from 2014 Cryptorush Mintpal and so on : nobody even bothered to trace stolen coins
similarly with MtGox Bitstamp Bter - nobody really tried to trace stolen huge packs of BTC

[ThePhwner]

Meanwhile, while Paul Vernon's conducting his snowjob, Investards are awaiting the next altcoin cleverly dubbed SnowCoin to buy and trade using their rent and food moneys:

Reminds me of Hashie.co's Frostcoins and their "post-hack" ARG to get the big Bitcoin reward...

"Let it go, let it go..."

as a hashie victim myself (only .05btc or so) i can  ROFLMFAO!!

I have 3K DGB in cryptsy    

Unfortunately, you do not: https://www.youtube.com/watch?v=L0MK7qz13bU

I got lucky in that blackcoin is near the start of the alphabet but I think they are going to work through the rest in order till you can withdraw DGB or am I reading that wrong.    I had a little of everything still but mostly just BTC and BLK

They've opened up wallets for coins that are not only near the beginning of the alphabet, but also either worthless or only traded on Cryptsy. Things that had some actual value like DASH, DGB, etc., you can bet your ass have long since been liquidated to cover other shortfalls.

[DEVRO]

ok so are the cryptsy wallets  really unlocked ? , so who is getting their coins out, im certainly not mine are pending then cancelled and returned to the wallet ballance & yes they are the wallets marked as unlocked on the list, doesnt matter what coin i try to withdraw same result.

[Melech]

Ironically, your 4-word post fits perfectly with what I just came back here to post about prior to hittin' da hay.

Check out this relatively brief video and see how the info within could be used to figure out the truth as to what happened at Cryptsy: https://www.youtube.com/watch?v=vKA4w2O61Xo

Neat video... You could use this as an IQ test...

IQ = 200 - 10*(# of guesses before figuring out the puzzle)

Seems like most of these schmucks take 10 guesses to figure out the simple pattern...

[thunderjet]

ok so are the cryptsy wallets  really unlocked ? , so who is getting their coins out, im certainly not mine are pending then cancelled and returned to the wallet ballance & yes they are the wallets marked as unlocked on the list, doesnt matter what coin i try to withdraw same result.

That is a problem - they opened wallets,but did not give us balances.They said that BTC,LTC,BTCD and XC were stolen,so balances for other unaffected coins should be OK and users will be able to withdraw them to the last one.But in fact,this is not happenning.There are some coins in wallets,but not enough to cover members balances.

How that could it be? - Well if not robbed(and Cryptsy did not give any evidences for that beside BTC,LTC,BTCD and XC) only one thing could happen - they used coins which did not belong to them,sold them to cover their expenses and make Cryptsy live another day(plus possibly sold some of them on other exchanges to obtain necessary BTCs for running exchange and calm people).I cant see any other explanation.

[Melech]

That is a problem - they opened wallets,but did not give us balances.They said that BTC,LTC,BTCD and XC were stolen,so balances for other unaffected coins should be OK and users will be able to withdraw them to the last one.But in fact,this is not happenning.There are some coins in wallets,but not enough to cover members balances.

How that could it be? - Well if not robbed(and Cryptsy did not give any evidences for that beside BTC,LTC,BTCD and XC) only one thing could happen - they used coins which did not belong to them,sold them to cover their expenses and make Cryptsy live another day(plus possibly sold some of them on other exchanges to obtain necessary BTCs for running exchange and calm people).I cant see any other explanation.

1) More coins were lost than Craptsy has admitted to losing (DRK/Dash withdrawal problems were first reported 18 months ago)

2) Craptsy's database has been hacked (evidenced by the phishing emails and failed login attempts)
It's possible that whoever hacked their database, also moved coins from your account into their own...

[Gleb Gamow]

That is a problem - they opened wallets,but did not give us balances.They said that BTC,LTC,BTCD and XC were stolen,so balances for other unaffected coins should be OK and users will be able to withdraw them to the last one.But in fact,this is not happenning.There are some coins in wallets,but not enough to cover members balances.

How that could it be? - Well if not robbed(and Cryptsy did not give any evidences for that beside BTC,LTC,BTCD and XC) only one thing could happen - they used coins which did not belong to them,sold them to cover their expenses and make Cryptsy live another day(plus possibly sold some of them on other exchanges to obtain necessary BTCs for running exchange and calm people).I cant see any other explanation.

1) More coins were lost than Craptsy has admitted to losing (DRK/Dash withdrawal problems were first reported 18 months ago)

2) Craptsy's database has been hacked (evidenced by the phishing emails and failed login attempts)
It's possible that whoever hacked their database, also moved coins from your account into their own...

Dude, if you or I sucked off 3-, 4- and 5-Star Army Generals in the Hood, we, too, would've been capable of creating, then hacking our very own cryptocurrency exchanges alone with conducting our own DdoS attacks and phishing attempts making such seem like they stemmed from outside sources. If one has to think about that too hard, StakeMiners is looking for A Few Good Investards.

[Melech]

Dude, if you or I sucked off 3-, 4- and 5-Star Army Generals in the Hood, we, too, would've been capable of creating, then hacking our very own cryptocurrency exchanges alone with conducting our own DdoS attacks and phishing attempts making such seem like they stemmed from outside sources. If one has to think about that too hard, StakeMiners is looking for A Few Good Investards.

Considering that "industry standards for security" would have prevented any theft... 1) dont run programs as root, 2) dont allow non-vpn to access database, 3) dont run untrusted 3rd party software on the same server that holds $13M...

It's either complete incompetence, or an inside job...

The database leak is particularly suspicious... Who leaves a database port open to the internet?  How is that even possible to hack?

[Gleb Gamow]

Dude, if you or I sucked off 3-, 4- and 5-Star Army Generals in the Hood, we, too, would've been capable of creating, then hacking our very own cryptocurrency exchanges alone with conducting our own DdoS attacks and phishing attempts making such seem like they stemmed from outside sources. If one has to think about that too hard, StakeMiners is looking for A Few Good Investards.

Considering that "industry standards for security" would have prevented any theft... 1) dont run programs as root, 2) dont allow non-vpn to access database, 3) dont run untrusted 3rd party software on the same server that holds $13M...

It's either complete incompetence, or an inside job...

The database leak is particularly suspicious... Who leaves a database port open to the internet?  How is that even possible to hack?

On one side of Paul Vernon's mouth we hear him say that Cryptsy is 100% secure and abide by all US laws, while on the other side of Paul's mouth we here Oopsie!, an event occurred and we didn't know who to contact, all the while we see the likes of Jim Slockney's et al. dick in Paul's mouth with Lorie Nettles on the sideline cheering on saying that there's still room for more dicks while Ginny Slockney is begging Lorie to sit on her face.

I'm in the process of penning another Blockcain Forensics post depicting Cryptsy's event.

FWIW:

Here's an interesting tidbit of Block 313009 - https://blockchain.info/block-height/313009 - where Cryptsy's infamous Proof of Reduction (PoR) of the Event resides: The transaction was the VERY FIRST position - Pos 1:

https://www.walletexplorer.com/txid/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf

[sluppy]

Just a few cherry picked coins available on withdraw this is complete bullshit.

Big Vern you criminal ******* *********  **** *** .

[cgt99]

Aaaaaaaaaaaaaaaaaand...     It's not just you! http://cryptsy.com looks down from here.

[Gleb Gamow]

Aaaaaaaaaaaaaaaaaand...     It's not just you! http://cryptsy.com looks down from here.

It's Sunday.

Paul Vernon just finished lunch after attending church.

Paul then went to Cryptsy's office to pound the monkey and the monkey got loose unplugging the secure servers.

Bad monkey!

[dac10]

CRYPTSY, the shame of trading, the market who cheated customers in the most brutal, by stabbings behind!!!This story has just started, a matter that we have to fight to when we recover all our money!!!
The largest market of electronic currency and became the prey of hungry sharks. I am sure of that, if Vernon, not return our coins, pay very bitterly!!!

[peonminer]

CRYPTSY, the shame of trading, the market who cheated customers in the most brutal, by stabbings behind!!!This story has just started, a matter that we have to fight to when we recover all our money!!!
The largest market of electronic currency and became the prey of hungry sharks. I am sure of that, if Vernon, not return our coins, pay very bitterly!!!

Disclaimer: The following is entirely fictitious.


Could you imagine . . . one day . . . Vernon is in a nursing home, old, frail, dilapidated from all of the underage transvestite hooker AIDS . . .

Then, oddly enough, he is assigned a new care taker. A new care taker who once, back in the 'old days' of 2015, had an account on cryptsy.com.

*That life support ticker is right there . . .* he thinks to himself. *hmmmmm . . .*

"Good morning Mr. Vernon! How did you sleep? I made sure to give you an extra dose of laxative with your jello!"

"Eeerrrmmm sonnnnnyy, chwhat did yer say?, I'm so old and frail I can't understand you. I think my ears are clogged with underage tranny jizz. Ah, the good ol' days. Sure wish Marshall Long would give me a tug, erm, I mean, ring . . ."

"Oh, nothing Mr. Vernon. Just relax. It's . . . nap time."

"Whewww! Yippe! Nap time! My Favorite! . . . I do have one request though."

"Yes, Mr. Vernon?"

"Well, could you just cup my balls until I fall asleep?"

" . . . . . . . . . . "

"Beeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee . . . . . . . . ."

*Intercom* "Joe, we have another one . . . . Yeah, room 666."

"Eh, just roll him out the window, there's a dumpster right below."

[Melech]

Aaaaaaaaaaaaaaaaaand...     It's not just you! http://cryptsy.com looks down from here.

It's Sunday.

Paul Vernon just finished lunch after attending church.

Paul then went to Cryptsy's office to pound the monkey and the monkey got loose unplugging the secure servers.

Bad monkey!

Last time they opened up new coins for withdrawal, the server went down for 4+ hours of maintenance first... (database backup, et al)