CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[Bitskint]

HEY

you know I almost forgot all about CRYPTSY !!

until I logged in and saw I once posted to this thread,

like a bad memory of something I did on a weekend years ago !!

Akin to the coyote ugly joke where one chews off his arm so not to wake her, Paul Vernon chews off the arm draped across him, then steals his wallet and sniffs his BVDs one last time prior to exiting to some far-away land.

Could someone open an Elvis and the president were assassinated thread ? - preferably with all contributors input from this one.

Gleb - it would really take some strain off / distract us all while the class action etc. take all our money/coins

On  a serious note.

New class action against the bitcoin core developers - option or not ?

The chain should have had an anti fraud security feature built in -

Let's look at it another way --

http://uk.businessinsider.com/the-internet-is-controlled-by-14-people-2014-3?r=US&IR=T

We are led to believe the internet is held together by a number of key holders -- all vetted etc.

Bitcoin chain and all altcoins should have had a similar kind of protection.

A number of people should have had the keys -- and only got together on rare occasions like fraud.

Maybe a second tier to make sure the first were acting legit --

This "ledger is secured by its users and transaction being confirmed " crap is flawed -- flawed so much its lost people
their lively-hoods :/

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[gembitz]

HEY

you know I almost forgot all about CRYPTSY !!

until I logged in and saw I once posted to this thread,

like a bad memory of something I did on a weekend years ago !!

Akin to the coyote ugly joke where one chews off his arm so not to wake her, Paul Vernon chews off the arm draped across him, then steals his wallet and sniffs his BVDs one last time prior to exiting to some far-away land.

Could someone open an Elvis and the president were assassinated thread ? - preferably with all contributors input from this one.

Gleb - it would really take some strain off / distract us all while the class action etc. take all our money/coins

On  a serious note.

New class action against the bitcoin core developers - option or not ?

The chain should have had an anti fraud security feature built in -

Let's look at it another way --

http://uk.businessinsider.com/the-internet-is-controlled-by-14-people-2014-3?r=US&IR=T

We are led to believe the internet is held together by a number of key holders -- all vetted etc.

Bitcoin chain and all altcoins should have had a similar kind of protection.

A number of people should have had the keys -- and only got together on rare occasions like fraud.

Maybe a second tier to make sure the first were acting legit --

This "ledger is secured by its users and transaction being confirmed " crap is flawed -- flawed so much its lost people
their lively-hoods :/

$heeple are stupid! bitcoin is non-reversible by design . This forces the users to do business with only people they absolutely trust. Cryptsy had a long pattern of bad behavior. People were stupid risk takers to leave anything in there especially after the paycoin ordeal!    *honeybadger don't give a fekk about cryptsy

[Fontas Returns]

Thunderjet:

Are you sure this is hacker wallet? How do you know?

https://www.walletexplorer.com/wallet/1356a64174770337


On 1-18 he sent 241 coins out which got divided up but an interesting detail:

https://www.walletexplorer.com/txid/f5f5cf6bd21b70a2b5062b2e5bf3e14940c161588b49b3c8fc939ccae7ffc735

He sent 2 coins and some change to a kraken account. Presumably, this account would have to have a name on it as well as have log in and ip info associated with it.

[Fontas Returns]

Perhaps we should notify exchanges of these transactions? btc-e, kraken, etc?

P.S. I think there's a good chance the hacker is following this thread, and may even be participating.

[thunderjet]

After a long work I finally found irrefutable evidences about Paul Vernon aka Bao Luo direct connection with "grand hack".Following traces of BTC from Cryptsy old wallet (which was under Vernon sole control and used for paying Cryptsy expenses and from which users could not get BTC directly) I found that after a hack he sent 368.7 BTC to Bittrex address 1G1QMXNCsyVAMiuXxHkzs3FrX3QGiXfUg9 directly from old Cryptsy wallet.

How much his greed is big,can be seen from fact that he sent last BTCs from old Cryptsy wallet to that address on Bittrex on 3rd.March.2016 !!! On 3rd.March.2016 he took last 1.1 BTC from Cryptsy old wallet(direct transactions):

https://www.walletexplorer.com/address/1G1QMXNCsyVAMiuXxHkzs3FrX3QGiXfUg9









But that is not full story.This Bittrex address 1G1QMXNCsyVAMiuXxHkzs3FrX3QGiXfUg9  also received 168 BTC from BTER and few dozen BTCs from Mintpal.Following DASH transactions after hack,some members of this forum,found many 5000 DASH transactions from Cryptsy wallet to Mintpal day after day,just few days from hack.Well now we know that was Vernon who sent them on Mintpal,sold for BTC and move some of that BTC to this Bittrex BTC address described above.After fall of Mintpal,BTER is coming into the game - selling was continuing on it.Few members of Cryptsy,including myself during December 2015 received few withdrawals from Cryptsy that were not coming from Cryptsy wallet ,but BTER.It seems that Vernon wanted to prolonge Cryptsy fall a little later,because Bitebi9 project was not finished then.


Now the most interesting part.This address on Bittrex was active in late 2014 and May 2015 (few last txs came from Cryptsy long after Cryptsy fall),when hacker was selling stolen altcoins on Bittrex and other exchanges.Mainly he withdraw BTCs to Bitfinex,but one big withdraw(20 BTCs) was directly moved to BTC wallet (address 1C6JEkN16FqyLH37vvmSicE59kqEadUmtf) where hacker stored all BTC obtained from selling stolen altcoins on different exchanges - that is direct link with theft .


So:

- on this Bittrex address BTC were coming from Cryptsy old wallet almost until court seized it

- from autumn 2014 until July 2015 - 368.7 BTC came directly from old Cryptsy wallet which was untouchable for users

- finally, 20 BTC were sent from this Bittrex account directly to BTC wallet where hacker stored BTCs obtained from selling stolen altcoins


https://www.walletexplorer.com/txid/d39a289e6a271c9380165090de989aab93f26d834ac27101e38fb5b041b6ec6b


BTC wallet where hacker stored BTCs from selling altcoins:

https://www.walletexplorer.com/wallet/1356a64174770337



This is link where you can see mine earlier findings about BTC wallet where hacker stored BTC from selling altcoins :


https://bitcointalk.org/index.php?topic=1173703.msg13678567#msg13678567

Great Job thunderjet.

What do you mean by "on this Bittrex address BTC were coming from Cryptsy old wallet almost until court seized it" ?

Are you saying until the Court Seized the Cryptsy Wallet?

If so, I haven't read anything about the Receiver having any actual wallets, let alone the keys.

Thanks

From 28th.March,court gave receiveship to plantiffs and Cryptsy is no longer under Vernon control

[o0o0]

Perhaps we should notify exchanges of these transactions? btc-e, kraken, etc?

P.S. I think there's a good chance the hacker is following this thread, and may even be participating.

Of course he is. Hacker is Vernon and he reads it daily.. how else would he know to change bitebi9 details from Bao to his chinese mistress (which he abandoned his US wife and kids for). How else would Horus, Mullick, Jshock and the others get their info so they can try and protect themselves from the bs they brought on their customers. They only read this thread because they are at the exposure stage and try to downplay what was done.

JShock or Cryptsy_Jim still hasn't given us the plausable story that cryptocracker gave them. JShock complains that people just accuse and put shit on others and don't ask questions. People have repeatedly asked him to give the story that made Paul Vernon think it was plausable.

So lets ask it a final time.

JShock.... or Cryptsy_Jim if you prefer. WHAT was the plausable story that cryptocracker gave Paul Vernon that you were privy to that made him think it was legit? You owe this to the customers whos funds you lost, so please enlighten us or have you gone dark again until another big thing comes out?

[thunderjet]

Thunderjet:

Are you sure this is hacker wallet? How do you know?

https://www.walletexplorer.com/wallet/1356a64174770337


On 1-18 he sent 241 coins out which got divided up but an interesting detail:

https://www.walletexplorer.com/txid/f5f5cf6bd21b70a2b5062b2e5bf3e14940c161588b49b3c8fc939ccae7ffc735

He sent 2 coins and some change to a kraken account. Presumably, this account would have to have a name on it as well as have log in and ip info associated with it.

I tracked stolen altcoins from Cryptsy wallet.After few months,altcoins(except LTC) started to move directly on Bittrex,without any mixing.I compare Bittrex charts for BTCD and XC on days when hacker moved them on that exchange.Huge selling occured on these days.Then I started looking on Bittrex BTC output transactions for big BTC withdrawals on the days of selling.I found one BTC wallet which was exact match by:

- received BTCs from Bittrex on the days of selling
- amounts were match for the worth of BTCD and XC for the sum of altcoins hacker sold on these days

Then I tracked LTCs,which were moved directly on July.2015 to Huobi(~75%) and BTC-e(~20%).Smaller amounts went on BTC38.Hackers wallet started to receive huge amounts of BTCs on these days from Huobi and BTC-e and these amounts matched amounts and worth od sold LTCs.Hacker could not move all of BTCs from BTC-e on the date of selling because of 100 BTC daily withdraw limit,so he removed them in batches until 25th.July,but whole amount is a match for LTC whole sum and selling price.

Finally 4685 BTC came to that BTC wallet.

I put mine findings about this BTC wallet on forum on January 26th.After that all transactions stopped from this wallet.Notice that larger amounts of BTCs started to move out on 18th.January,just 3 days after Cryptsy fall and then suddenly stopped.


Wallet I found yesterday on Bittrex is very important because it is a direct link between Cryptsy(that wallet received BTCs directly from Cryptsy until 3rd.March.2016), Mintpal - BTER selling of DASH plus in one withdraw transaction 20 BTC went directly to hacker BTC wallet found on 26th.January.



This is a mine post from 26th.January:

After a long search I located hacker BTC wallet,where he put BTCs after selling stolen LTC, BTCD and XC and most likely from some other stolen coins from Cryptsy too

https://www.walletexplorer.com/wallet/1356a64174770337


This is list of hacker BTC wallet addresses and amounts on them:

1C6JEkN16FqyLH37vvmSicE59kqEadUmtf   1044.4783332     
1EycjnLMwsu3TGkmRXk2KcQFKfMDms3BPh   543.96196074    
1LDJRDYwqaMeP4fohtKCk9rC4yNp84ZwBj      539.76554775    
12wjDTKN7VJ7EzGpXhzUugRn9EksAE7V54     529.15362786    
12jbr2aBAvepnhLVzH7FmEJSj5vhV12AVc           525.12341805    
16GND7hK2G6ng1wkZeotEboAAXCJQ3oFMS   198.38328147    
19tZeUPgr79fPcnF7kZ5Auibng5MJu8ZXV           92.68801239    
1CH76kqRrgi1bNKBR2No58D2Ww4ZMLNnAz   24.3806           
1KCUsmS1yno86E1WyaezJryBLeFPTBvgSS     20.91127867    
12pph89q6WqBnfSMyhTbB9jY3Qy42ckkSY     0.            
152kBAm48m7qpJ435LnvskYNyQk5zdE7oR           0.            
1KLAEfwvJC8awiuigk5CrQ8dVB2XsXjABm           0.            
13hvDJDXC95hgvBqbf3zVpQiYct8FTv2GZ           0.            
1MWcNSArYxzR2JxAqs7fSi9hnKMgf1KfNM           0.            
121nt1QeEZTbSRREaEGvKcqCmTQkhCcDAX   0.            
1CCN21uVdp95LHJtXh53B6BC7M3s4y63Mo     0.            
1FDDuyhunAtBb287WNmJEEwr6s24yvEQTv   0.            
15wzuUsgz5Wia8i5mrEYp3p8ciHPbi1v4h           0.            
1JuyFXAYuS4RHdaxrZDjE1f6XtFPRQdhYP           0.            


I was tracking Bittrex BTC wallet outputs on dates when he moved stolen BTCD and XC on Bittrex.Hacker moved and sold BTCD and XC on Bittrex in period between 14.Oct.2014 - 07.Nov.2014.I did it ,because Bittrex is a small exchange in comparison for BTC exchanges,there are no much big withdrawals,and every such one can be easily identified and tracked.


Inside hacker wallet there is address 1C6JEkN16FqyLH37vvmSicE59kqEadUmtf :

https://www.walletexplorer.com/address/1C6JEkN16FqyLH37vvmSicE59kqEadUmtf

on that address hacker put BTC after selling BTCD and XC on Bittrex and LTC on BTC-e(11.July.2015)


If you carefully look on inputs at that address for period 14.Oct- 04.Nov.2014 - they are all from Bittrex.After this period new inputs started again on 11.July.2015 - day when LTC started to moving to different exchanges.As I wrote in mine previous posts, 55000 LTC moved 11.July on BTCe exchange to address: LY13Z54QKwyAnuwKfYwKFhW98qa6ihsfYy and then to BTCe LTC hot wallet - LXA3i9eEAVDbgDqkThCa4D6BUJ3SEULkEr

Hacker sold 55000 LTC on BTC-e 11-12.July.2015,but could not move about 935 BTC all at once,due to BTCe daily withdraw limit of 100 BTC,so you will see a lot of inputs of 99.999 BTC on 1C6JEkN16FqyLH37vvmSicE59kqEadUmtf from 11-25.July

All inputs on this address for period 11-25.July has a total sum of about 930 BTC.
Average value of LTC for 11-12July on BTCe,when hacker sold them was 0.017 BTC for 1 LTC:
55000 x 0.017 = 935 BTC

If you trace backward(with help of Wallet explorer trace largest sum(branching BTCe output) in every txs) all BTC inputs on address 1C6JEkN16FqyLH37vvmSicE59kqEadUmtf  for 11-25.July have point of origin in BTCe exchange wallet.

Also hacker wallet  https://www.walletexplorer.com/wallet/1356a64174770337 for a period 18.Aug.2014(when it formed) till now you will see that all inputs in it has a total sum of ~ 4685 BTC

Sum of stolen LTC,BTCD and XC is:

2475000 LTC x 0.015 = 3712 BTC

107400 BTCD x 0.007 = 752 BTC

289000 XC x 0.0007 = 202 BTC
---------------------------------------------
Total:  4666 BTC , very very close to the sum of all inputs for that wallet

I have also tested dozen other transactions (traced them backward) in this wallet https://www.walletexplorer.com/wallet/1356a64174770337 and found that BTC inputs which came from LTC selling(11-25.July.2015 came from Huobi, BTC38 and BTC-e,like I found and wrote in previous posts.

First 8 inputs in this wallet https://www.walletexplorer.com/wallet/1356a64174770337?page=3 ,has point of origin BTC38.It was before LTC,BTCD and XC started to move,so it is most likely from some other robbed coins,which Cryptsy did not report or even did not aware.Also hacker sold on BTC38 and BTER till 14.Oct.2014 coins in total value of about 200 BTC.It was before BTCD,XC and LTC started to move - so it is some other stolen coins never reported.


This is a list of BTCD and XC transactions and dates when they came to Bittrex:

XC11

https://chainz.cryptoid.info/xc/tx.dws?198609.htm - moved 24.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?411249.htm - moved 07.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?380728.htm - moved 24.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?395694.htm - moved 31.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?373715.htm - moved 20.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?373818.htm - moved 20.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?393371.htm - moved 30.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?399652.htm - moved 02.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?380702.htm - moved 23.10.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?398810.htm - moved 01.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?399528.htm - moved 02.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?399682.htm - moved 02.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?399688.htm - moved 02.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?399694.htm - moved 02.11.2014 - Bittrex

https://chainz.cryptoid.info/xc/tx.dws?411262.htm - moved 07.11.2014 - Bittrex



BTCD

http://explorebtcd.info/tx/8d20bdcc209a724f9769707578d69bd39bfa108636ae3df7664f8a56629e67af - moved 24.10.2014 - Bittrex

http://explorebtcd.info/tx/a035693c30b9d6ad2fe9b8e1df8fb41e672b292546065863e73095838965344e - moved 14.10.2014 - Bittrex

http://explorebtcd.info/tx/3cdd16fe894e7039b4edeefae27d40ce355d44ac0a98ed7e3715ca117d2befde - moved 30.10.2014 - Bittrex

[GoldSeal]

... That being said, our community deserves their casinocoin and I don't think they should lose $3m+ to Paul's scam if we hit our targets this year.

Wow... I would have thought the correct answer was none of us should loose our coins to Paul's scam, but thats just me.

paul and the c crew stole from all of us, why would the holders of any one coin get to recover their losses (and potential gains) when so many lost so much?

Getting completely ripped off by cryptsy was a risk that all of cyptsy's customers walked into with their eyes wide open. At this point, you guys should work on accepting that it is extremely unlikely that anyone will get anything back. If you put thousands of dollars into a risky exchange like this and got burned, sure I feel bad for you. It's a real shame. Crypto suffers across the board everytime this kind of thing happens. With regard to each of Paul's victims, keep in mind that you are lying to yourself if you didn't know that losing all you coins wasn't a definite possible outcome. I liken this to banging a prostitute without a condom and then getting angry when you find out she gave you herpes. This is one instance where your greed, laziness, poor decision making, or a combination of these caught up with you and you paid the price.

Imagine this scenario: 3 neighbors loan a 4th neighbor collectively a chainsaw, a leaf blower, and a lawn mower. Unfortunately, the neighbor's home gets robbed and someone steals the lawn mower. Does that give the neighbor the right to sell his other neighbors' chainsaw and leaf blower, then split the proceeds between all 3? Of course not. So stop with that "they stole from all of us" bullshit. Only a handful of coins were stolen. The rest of the coins could have been fully returned to their rightful owners.


2 crimes occurred here. Someone hacker or insider stole BTC, Doge, LTC, whatever. Then Paul stole all the rest of his depositors coins after bizarrely and seemingly arbitrarily releasing several types of altcoins.

As the developer of casinocoin, we have considered two possible options to recover those coins. The first was to identify cryptsy's wallets, make them unspendable, and generate new coins to distribute to those who could prove their casinocoin balances. We chose not to do this because of the requirement for a hardfork and we would like to urge Cryptsy to return casinocoins to their rightful owners. The second option was to create a new coin and kickoff a program of exchanging current CSC for a new blockchain one by one with personal verification. Paul and anyone associated with Cryptsy or their shill bankruptcy would not be allowed to participate in this and ultimately the coins cryptsy is holding would cease to exist. This is an option that I would still be open to, but again I would rather avoid any sort of centralized action and would rather give those clowns some time to do the right thing and return the CSC to their rightful owners. However, they should be aware that any altcoin could decide to take back their coins trapped in Cryptsy if they decide to do so as a community. The dev can produce a wallet to recover them and the community can endorse the action by the majority simply adopting the modified wallet. If you want this, talk to your devs. Get your coins back. The BTC, LTC, DOGE, whatever holders that were robbed. You're not likely to get anything back if these altcoin communities want their coins back anyway.

[Gleb Gamow]

Perhaps we should notify exchanges of these transactions? btc-e, kraken, etc?

P.S. I think there's a good chance the hacker is following this thread, and may even be participating.

Of course he is. Hacker is Vernon and he reads it daily.. how else would he know to change bitebi9 details from Bao to his chinese mistress (which he abandoned his US wife and kids for). How else would Horus, Mullick, Jshock and the others get their info so they can try and protect themselves from the bs they brought on their customers. They only read this thread because they are at the exposure stage and try to downplay what was done.

JShock or Cryptsy_Jim still hasn't given us the plausable story that cryptocracker gave them. JShock complains that people just accuse and put shit on others and don't ask questions. People have repeatedly asked him to give the story that made Paul Vernon think it was plausable.

So lets ask it a final time.

JShock.... or Cryptsy_Jim if you prefer. WHAT was the plausable story that cryptocracker gave Paul Vernon that you were privy to that made him think it was legit? You owe this to the customers whos funds you lost, so please enlighten us or have you gone dark again until another big thing comes out?

How else would DCGirl know that the name Susan Wilson is affiliated with her, hence her coming here ASAP to ward off the connection.

All in all, we've witnessed a long con, with Paul Vernon claiming to have gotten in Bitcoin in 2011, then taking a break, with Cryptsy being registered on 2012-02-09T17:45:01.00Z, Paul supposedly not being active again till early 2013 tinkering in Litecoin, then creating a few pools, to bringing Cryptsy to life in less than two months with BitJohn being a cheerleader for the new dude (Paul) on the scene while he (BitJohn/John Hammes) supposedly being in a war zone in Afghanistan playing Cryptsy support sans pay because he thought it was fun, only to later vacant his paid position because ... wait for it... he wasn't being paid enough for ALL the fuckin' work he was doing, his exit coinciding with the divorce filing, with same true for most other higher-ups except Horus, living comfortably numb in the fully paid for condo office-cum-residence on Cryptsy's dime... make that Cryptsy's users' dimes.

[fakecryptsynagger]

First we need to catch Vern
After take him2 remadroom
Give well service in jail
.

[Phildo]

... That being said, our community deserves their casinocoin and I don't think they should lose $3m+ to Paul's scam if we hit our targets this year.

Wow... I would have thought the correct answer was none of us should loose our coins to Paul's scam, but thats just me.

paul and the c crew stole from all of us, why would the holders of any one coin get to recover their losses (and potential gains) when so many lost so much?

Getting completely ripped off by cryptsy was a risk that all of cyptsy's customers walked into with their eyes wide open. At this point, you guys should work on accepting that it is extremely unlikely that anyone will get anything back. If you put thousands of dollars into a risky exchange like this and got burned, sure I feel bad for you. It's a real shame. Crypto suffers across the board everytime this kind of thing happens. With regard to each of Paul's victims, keep in mind that you are lying to yourself if you didn't know that losing all you coins wasn't a definite possible outcome. I liken this to banging a prostitute without a condom and then getting angry when you find out she gave you herpes. This is one instance where your greed, laziness, poor decision making, or a combination of these caught up with you and you paid the price.

Imagine this scenario: 3 neighbors loan a 4th neighbor collectively a chainsaw, a leaf blower, and a lawn mower. Unfortunately, the neighbor's home gets robbed and someone steals the lawn mower. Does that give the neighbor the right to sell his other neighbors' chainsaw and leaf blower, then split the proceeds between all 3? Of course not. So stop with that "they stole from all of us" bullshit. Only a handful of coins were stolen. The rest of the coins could have been fully returned to their rightful owners.


2 crimes occurred here. Someone hacker or insider stole BTC, Doge, LTC, whatever. Then Paul stole all the rest of his depositors coins after bizarrely and seemingly arbitrarily releasing several types of altcoins.

As the developer of casinocoin, we have considered two possible options to recover those coins. The first was to identify cryptsy's wallets, make them unspendable, and generate new coins to distribute to those who could prove their casinocoin balances. We chose not to do this because of the requirement for a hardfork and we would like to urge Cryptsy to return casinocoins to their rightful owners. The second option was to create a new coin and kickoff a program of exchanging current CSC for a new blockchain one by one with personal verification. Paul and anyone associated with Cryptsy or their shill bankruptcy would not be allowed to participate in this and ultimately the coins cryptsy is holding would cease to exist. This is an option that I would still be open to, but again I would rather avoid any sort of centralized action and would rather give those clowns some time to do the right thing and return the CSC to their rightful owners. However, they should be aware that any altcoin could decide to take back their coins trapped in Cryptsy if they decide to do so as a community. The dev can produce a wallet to recover them and the community can endorse the action by the majority simply adopting the modified wallet. If you want this, talk to your devs. Get your coins back. The BTC, LTC, DOGE, whatever holders that were robbed. You're not likely to get anything back if these altcoin communities want their coins back anyway.

There is a big difference between a neighbor and an insolvent company facing lawsuits.

[thunderjet]

Perhaps we should notify exchanges of these transactions? btc-e, kraken, etc?

P.S. I think there's a good chance the hacker is following this thread, and may even be participating.

Of course he is. Hacker is Vernon and he reads it daily.. how else would he know to change bitebi9 details from Bao to his chinese mistress (which he abandoned his US wife and kids for). How else would Horus, Mullick, Jshock and the others get their info so they can try and protect themselves from the bs they brought on their customers. They only read this thread because they are at the exposure stage and try to downplay what was done.

JShock or Cryptsy_Jim still hasn't given us the plausable story that cryptocracker gave them. JShock complains that people just accuse and put shit on others and don't ask questions. People have repeatedly asked him to give the story that made Paul Vernon think it was plausable.

So lets ask it a final time.

JShock.... or Cryptsy_Jim if you prefer. WHAT was the plausable story that cryptocracker gave Paul Vernon that you were privy to that made him think it was legit? You owe this to the customers whos funds you lost, so please enlighten us or have you gone dark again until another big thing comes out?

How else would DCGirl know that the name Susan Wilson is affiliated with her, hence her coming here ASAP to ward off the connection.

All in all, we've witnessed a long con, with Paul Vernon claiming to have gotten in Bitcoin in 2011, then taking a break, with Cryptsy being registered on 2012-02-09T17:45:01.00Z, Paul supposedly not being active again till early 2013 tinkering in Litecoin, then creating a few pools, to bringing Cryptsy to life in less than two months with BitJohn being a cheerleader for the new dude (Paul) on the scene while he (BitJohn/John Hammes) supposedly being in a war zone in Afghanistan playing Cryptsy support sans pay because he thought it was fun, only to later vacant his paid position because ... wait for it... he wasn't being paid enough for ALL the fuckin' work he was doing, his exit coinciding with the divorce filing, with same true for most other higher-ups except Horus, living comfortably numb in the fully paid for condo office-cum-residence on Cryptsy's dime... make that Cryptsy's users' dimes.

Iam sure you are right that DCGirl read these posts - her quick reaction prove it, but is she really Susan Wilson? That woman is first class scammer,playing only with big boys(multi-millioners and billionaires).What could she provide to Vernon? Maybe some rich investors,but did not find that any of them were interested for Cryptsy.Except that name for a game Whack a Troll, did not find any real connection.

When I read about Susan Wilson,how she cold blooded using her own children for scamming people,there is no doubt that she is cold,very eloquent,very secure,highly focused and ruthless person which achieves goals by any means neccessary - true machiavellian type of person.On the other hand DCGirl posts are talking that she is quite different - she is also smart,but insecure person,much more emotional.It seems that she had almost fatalistic point of view,that is inevitable that one day she will find her name on this forum - like people convicted to death sentence waiting for a day when executioner will come for them.


But,now when court gave receivership of Cryptsy to plantiffs,I expect that one of first things will be to publish full list of Cryptsy employees,time period of theirs work and salaries.Then we will know all their true identities for sure.Maybe we even see episode dedicated to Cryptsy on BLACKLIST TV serie - BITEBI BITE


I dont know if you see mine post from last week,when I put identity of Cryptsy main financial person Roman Almanza who worked on Cryptsy to the last days:

I found that 4 persons left to work on Cryptsy to the very end - Jim Shockney,Horus,Mullick and I thought that 4th would be DC Girl.

I was wrong,4th person was Roman Almanza,Senior Financial Analyst,the person who was responsible for all finances on Cryptsy and the one who knows all about Cryptsy money operations.He could be valuable witness.

He first studied business and financial administration in Saratov,Russia and interesting thing is that he appears by two different names - Dmitry R Almanza and Roman Almanza.




http://www.indeed.com/r/Roman-Almanza/450c10f4bc30d741#_ga=1.7364658.1263527337.1459745828

[Gleb Gamow]

^^^

Yep, I saw your Roman post. In re. Susan, she was/is partners with Gene Ransom, at the very least versed in Bitcoin, with being connected to Ransomware (a namesake) at the other extreme.

[Fontas Returns]

thunderjet ok you've made a pretty convincing case that's some pretty excellent forensic accounting. Do you have any credentials that could qualify you as an expert witness/would you if offered?

[Fontas Returns]

Wow so according to your theory of the crime, if I follow right, the main stash of the proceeds of the alt wallet heist hasn't been moved since january but there was a period where it looks like the "hacker"(Vern?) was attempting to dissipate the coins through some sort of bot but then right about the time Vern announced the "Event" it looks like the Hacker culprit(s) have perhaps gotten alerted to the heat on those coins and stopped the wallet activity. Part of that is that some of the coins seem to have been laundered through a kraken account in the period following Vern's divorce. This scenario seems consistent with and would seem to possibly match Lorie's allegations that she thought he was actively trying to dissipate "assets". I think she filed the divorce in that intermittent period between the sell-off portion of the strategy and the post-sale dissipation bot activity. Vern seems to have stopped looting the hot wallets since the "judge" in effect ordered him to stop.

Trying to conjecture what's in the hacker's mind. If the coin activity stopped right about the time the hack was announced then it appears the hacker was alerted to the heat and then mostly stopped messing with the coins in the "dirty" wallet stash. But Vern still kept looting the "clean" coins until a few weeks ago, if I'm following the forensics trail correctly. So, this means the hacker really mostly has not directly spent many of the "dirty" coins at all, mainly laundered them or simply left them in those big wallets in clumps of 1000.

[Gleb Gamow]

Paul Vernon's hiding place uncovered: http://www.dailystar.co.uk/news/weird-news/506462/live-snake-found-inside-woman-vagina-togo-video-voodoo-sex

[thunderjet]

Wow so according to your theory of the crime, if I follow right, the main stash of the proceeds of the alt wallet heist hasn't been moved since january but there was a period where it looks like the "hacker"(Vern?) was attempting to dissipate the coins through some sort of bot but then right about the time Vern announced the "Event" it looks like the Hacker culprit(s) have perhaps gotten alerted to the heat on those coins and stopped the wallet activity. Part of that is that some of the coins seem to have been laundered through a kraken account in the period following Vern's divorce. This scenario seems consistent with and would seem to possibly match Lorie's allegations that she thought he was actively trying to dissipate "assets". I think she filed the divorce in that intermittent period between the sell-off portion of the strategy and the post-sale dissipation bot activity. Vern seems to have stopped looting the hot wallets since the "judge" in effect ordered him to stop.

Trying to conjecture what's in the hacker's mind. If the coin activity stopped right about the time the hack was announced then it appears the hacker was alerted to the heat and then mostly stopped messing with the coins in the "dirty" wallet stash. But Vern still kept looting the "clean" coins until a few weeks ago, if I'm following the forensics trail correctly. So, this means the hacker really mostly has not directly spent many of the "dirty" coins at all, mainly laundered them or simply left them in those big wallets in clumps of 1000.

After Cryptsy hack announcement on 15.January,it seems that hacker was trying to speed up moving BTC obtained form selling stolen altcoins to exchanges.On 18th.January alone he sent 356 BTC,but after posting  of his wallet on 26th.January he abruptly stopped. 11825 BTCs stolen from Cryptsy were not moved at all.It looks that he wanted first to sell altcoins,then BTCs from them exchange for cash.He probably thought that everybody would look on stolen BTCs and nobody will pay attention on what is happening with altcoins.He thought that is impossible to trace altcoins,especially after changing them for BTCs.How wrong he was.

All that time October 2014 - July 2015, Vernon did not do anything to prevent it.Why he did not contact Bittrex which is also US based exchange?All that silence was perfect only for hacker,because he could exchange stolen altcoins in peace.Hacker was so sure in himself that he sent directly stolen altcoins to exchanges,without any mixing.

Few months after hack,everything goes smooth and relaxed Vernon bought 1.3 millions worth house for cash he recevied from Santa Clause.It is very possible that he reported that money to IRS as a profit from Cryptsy- clean money .After few months he was sure that Cryptsy will survive on fractional reserves and nobody will ever know what was happened.Now IRS are looking for him to explain that profit in year when exchange lost more than 10 millions in hack - that is why he put signature on divorce agreement in China not US.

After last altcoins (LTCs) were sold in July.2015 ,Vernon opened Bitebi9 on 28th.July(gave $46000 for start capital alone) and a month after that Cryptsy started to crumble.Money for Bitebi9 were obtained directly form Cryptsy old wallet,by sending 545 BTC in July to BTCC China and selling them for CNY.From July 2015-January 2016 there were no activities on that account and then just few days before Cryptsy closing on 10th.January.2016 last 16 BTC from Cryptsy wallet went on that address at BTCC China.


Obviously he tried to cover tracks,by using different wallets for different activities,so nobody could connect them.He only had full control on Cryptsy wallet,so nobody except him could know what is happening.He learned lesson from Mt.Gox,when other staff had access and report about Karpeless activities on forums before final crash.It is very possible that he has a small network of offshore companies(like Shaun Bridges had) where money from selling BTCs first went after selling for dollars on exchanges.


All this looks like some carefully planned secret operation - well maybe it is,Vernon worked for military inteligence,so he knew how secrecy is important when you doing sensitive,especially dirty things.The less people know the better.He surely very well know for inteligence services reaction after major fuck ups - first, deny everything untill you can,then starting blame others and finally act insanity.

[fakecryptsynagger]

Paul Vernon's hiding place uncovered: http://www.dailystar.co.uk/news/weird-news/506462/live-snake-found-inside-woman-vagina-togo-video-voodoo-sex

That Snake name big verntog🐍


@thunderjet


Soon bitebi9 going to close because verntog (osama bin laden of bitcoin ) n his employees troops going to jail then
, it means bitebi9 users now in dangerous zone😨

[o0o0]

Wow so according to your theory of the crime, if I follow right, the main stash of the proceeds of the alt wallet heist hasn't been moved since january but there was a period where it looks like the "hacker"(Vern?) was attempting to dissipate the coins through some sort of bot but then right about the time Vern announced the "Event" it looks like the Hacker culprit(s) have perhaps gotten alerted to the heat on those coins and stopped the wallet activity. Part of that is that some of the coins seem to have been laundered through a kraken account in the period following Vern's divorce. This scenario seems consistent with and would seem to possibly match Lorie's allegations that she thought he was actively trying to dissipate "assets". I think she filed the divorce in that intermittent period between the sell-off portion of the strategy and the post-sale dissipation bot activity. Vern seems to have stopped looting the hot wallets since the "judge" in effect ordered him to stop.

Trying to conjecture what's in the hacker's mind. If the coin activity stopped right about the time the hack was announced then it appears the hacker was alerted to the heat and then mostly stopped messing with the coins in the "dirty" wallet stash. But Vern still kept looting the "clean" coins until a few weeks ago, if I'm following the forensics trail correctly. So, this means the hacker really mostly has not directly spent many of the "dirty" coins at all, mainly laundered them or simply left them in those big wallets in clumps of 1000.

After Cryptsy hack announcement on 15.January,it seems that hacker was trying to speed up moving BTC obtained form selling stolen altcoins to exchanges.On 18th.January alone he sent 356 BTC,but after posting  of his wallet on 26th.January he abruptly stopped. 11825 BTCs stolen from Cryptsy were not moved at all.It looks that he wanted first to sell altcoins,then BTCs from them exchange for cash.He probably thought that everybody would look on stolen BTCs and nobody will pay attention on what is happening with altcoins.He thought that is impossible to trace altcoins,especially after changing them for BTCs.How wrong he was.

All that time October 2014 - July 2015, Vernon did not do anything to prevent it.Why he did not contact Bittrex which is also US based exchange?All that silence was perfect only for hacker,because he could exchange stolen altcoins in peace.Hacker was so sure in himself that he sent directly stolen altcoins to exchanges,without any mixing.

Few months after hack,everything goes smooth and relaxed Vernon bought 1.3 millions worth house for cash he recevied from Santa Clause.It is very possible that he reported that money to IRS as a profit from Cryptsy- clean money .After few months he was sure that Cryptsy will survive on fractional reserves and nobody will ever know what was happened.Now IRS are looking for him to explain that profit in year when exchange lost more than 10 millions in hack - that is why he put signature on divorce agreement in China not US.

After last altcoins (LTCs) were sold in July.2015 ,Vernon opened Bitebi9 on 28th.July(gave $46000 for start capital alone) and a month after that Cryptsy started to crumble.Money for Bitebi9 were obtained directly form Cryptsy old wallet,by sending 545 BTC in July to BTCC China and selling them for CNY.From July 2015-January 2016 there were no activities on that account and then just few days before Cryptsy closing on 10th.January.2016 last 16 BTC from Cryptsy wallet went on that address at BTCC China.


Obviously he tried to cover tracks,by using different wallets for different activities,so nobody could connect them.He only had full control on Cryptsy wallet,so nobody except him could know what is happening.He learned lesson from Mt.Gox,when other staff had access and report about Karpeless activities on forums before final crash.It is very possible that he has a small network of offshore companies(like Shaun Bridges had) where money from selling BTCs first went after selling for dollars on exchanges.


All this looks like some carefully planned secret operation - well maybe it is,Vernon worked for military inteligence,so he knew how secrecy is important when you doing sensitive,especially dirty things.The less people know the better.He surely very well know for inteligence services reaction after major fuck ups - first, deny everything untill you can,then starting blame others and finally act insanity.

The more i think about it the more i think you are right. This piece of shit tried to use funds in cryptsy to push his lifestyle and new ventures... he probably started small and then well you know once you start you can't stop. He figured the cryptsy coffers would cover and fill this and with unpredictable prices and withdrawals before you know it he was fucked. So he did what any scammer and poor excuse for a father and human being would do given that situation he ran off to somewhere else.

Im not sure it was planned from the opening of cryptsy but maybe he got greedy and thought it would all be covered... its going to be a great year. Paul Vernon and Joshua Garza both in court and both involved together. Its horrible to see but maybe crypto needs bad examples like this with incarceration and fines to set examples to prevent future scams?

[thunderjet]

Wow so according to your theory of the crime, if I follow right, the main stash of the proceeds of the alt wallet heist hasn't been moved since january but there was a period where it looks like the "hacker"(Vern?) was attempting to dissipate the coins through some sort of bot but then right about the time Vern announced the "Event" it looks like the Hacker culprit(s) have perhaps gotten alerted to the heat on those coins and stopped the wallet activity. Part of that is that some of the coins seem to have been laundered through a kraken account in the period following Vern's divorce. This scenario seems consistent with and would seem to possibly match Lorie's allegations that she thought he was actively trying to dissipate "assets". I think she filed the divorce in that intermittent period between the sell-off portion of the strategy and the post-sale dissipation bot activity. Vern seems to have stopped looting the hot wallets since the "judge" in effect ordered him to stop.

Trying to conjecture what's in the hacker's mind. If the coin activity stopped right about the time the hack was announced then it appears the hacker was alerted to the heat and then mostly stopped messing with the coins in the "dirty" wallet stash. But Vern still kept looting the "clean" coins until a few weeks ago, if I'm following the forensics trail correctly. So, this means the hacker really mostly has not directly spent many of the "dirty" coins at all, mainly laundered them or simply left them in those big wallets in clumps of 1000.

After Cryptsy hack announcement on 15.January,it seems that hacker was trying to speed up moving BTC obtained form selling stolen altcoins to exchanges.On 18th.January alone he sent 356 BTC,but after posting  of his wallet on 26th.January he abruptly stopped. 11825 BTCs stolen from Cryptsy were not moved at all.It looks that he wanted first to sell altcoins,then BTCs from them exchange for cash.He probably thought that everybody would look on stolen BTCs and nobody will pay attention on what is happening with altcoins.He thought that is impossible to trace altcoins,especially after changing them for BTCs.How wrong he was.

All that time October 2014 - July 2015, Vernon did not do anything to prevent it.Why he did not contact Bittrex which is also US based exchange?All that silence was perfect only for hacker,because he could exchange stolen altcoins in peace.Hacker was so sure in himself that he sent directly stolen altcoins to exchanges,without any mixing.

Few months after hack,everything goes smooth and relaxed Vernon bought 1.3 millions worth house for cash he recevied from Santa Clause.It is very possible that he reported that money to IRS as a profit from Cryptsy- clean money .After few months he was sure that Cryptsy will survive on fractional reserves and nobody will ever know what was happened.Now IRS are looking for him to explain that profit in year when exchange lost more than 10 millions in hack - that is why he put signature on divorce agreement in China not US.

After last altcoins (LTCs) were sold in July.2015 ,Vernon opened Bitebi9 on 28th.July(gave $46000 for start capital alone) and a month after that Cryptsy started to crumble.Money for Bitebi9 were obtained directly form Cryptsy old wallet,by sending 545 BTC in July to BTCC China and selling them for CNY.From July 2015-January 2016 there were no activities on that account and then just few days before Cryptsy closing on 10th.January.2016 last 16 BTC from Cryptsy wallet went on that address at BTCC China.


Obviously he tried to cover tracks,by using different wallets for different activities,so nobody could connect them.He only had full control on Cryptsy wallet,so nobody except him could know what is happening.He learned lesson from Mt.Gox,when other staff had access and report about Karpeless activities on forums before final crash.It is very possible that he has a small network of offshore companies(like Shaun Bridges had) where money from selling BTCs first went after selling for dollars on exchanges.


All this looks like some carefully planned secret operation - well maybe it is,Vernon worked for military inteligence,so he knew how secrecy is important when you doing sensitive,especially dirty things.The less people know the better.He surely very well know for inteligence services reaction after major fuck ups - first, deny everything untill you can,then starting blame others and finally act insanity.

The more i think about it the more i think you are right. This piece of shit tried to use funds in cryptsy to push his lifestyle and new ventures... he probably started small and then well you know once you start you can't stop. He figured the cryptsy coffers would cover and fill this and with unpredictable prices and withdrawals before you know it he was fucked. So he did what any scammer and poor excuse for a father and human being would do given that situation he ran off to somewhere else.

Im not sure it was planned from the opening of cryptsy but maybe he got greedy and thought it would all be covered... its going to be a great year. Paul Vernon and Joshua Garza both in court and both involved together. Its horrible to see but maybe crypto needs bad examples like this with incarceration and fines to set examples to prevent future scams?

I also dont think he was planning that from begining(that would be pure evil).For a long time I thought it was just pure greed overtook him when he saw so much money in his hands.But after all maybe initial reason came from something else.

2 months before hack at least 585 BTC from Silkroad seized wallets in the time when Shaun Bridges controlled them,came through Cryptsy wallets. 75 BTCs came directly to cold wallet and stayed in it until hack.No doubt,Vernon knew Shaun Bridges months before hack.In that time Cryptsy was biggest altcoin exchange based in US and ideal for laundering dirty Bitcoins if you had a deal with owner and give him percentage for that service.

Problem began when just few weeks after BTCs from Silkroad started to come on Cryptsy,Carl Force and Shaun Bridges went under investigation.Maybe,Vernon was afraid that investigators will connect him with them and decided to perform fake hack,so if investigation comes to him ,authorities could not sieze majority of valubale altcoins and BTCs and no matter what he will have more than enough money for the rainy days.

He performed silent hack and waited.Months were passing and nothing happened.No investigation and Cryptsy performanced well on fractional reserves.Then after initial fear,greed overtook.He probably thought - nobody search for me,exchange works,so why I would not retain all these coins for myself? He started to relax,put posts on veteran sites about his techno genius personality and finally decided to reward himself for all months in fear by starting to live luxury life.First big house,than luxury cars and finally young Chinese mistress.


Maybe all this would not happened if people knew before what Gleb discovered on this forum - that Vernon ran penny auction site Foopile few years before(Brawnco inc) which was closed on a way very similar to Cryptsy.