Hey folks. I know it has been a long time, but I wanted to finally give an update.
Last time I was on the forum, I had very little idea about what actually went on, so I had no answers for people that were 100% accurate.
The day we saw customer coins go to Bittrex, I knew 100% Paul sent them and was trying to liquidate. It is then I called the receiver. Before I wanted to believe it was a big hack, and that the company I worked for was stupid, but innocent.
After speaking thoroughly with the receiver, I know that wasn't the case. Apparently by the time the "hack" happened, Paul had already drained about 3 million USD out of Cryptsy wallets. I think he was using it as his personal money thinking "Hey, Cryptsy makes good money, let me use this and pay it back as money comes in" You and I know this is extremely wrong, but it is what I believe happened.
Then came the infamous hack, which in all honesty, I do believe happened. I think once it did, Paul knew he was fucked. He began running on fractional reserves. I am disappointed he hid it, and continued to do business. It would have been better for him to come out and say he fucked up, and figured out a repayment plan. But , instead, he hid it, continued to let the site get shittier and shittier, have customers upset which destroyed all chance of paying people back as he wasn't making money to pay it back.
I was fully cooperative with the receiver ever since I first spoke to him. So much so that I wasn't subpoena'd where everyone else was. I gave them a copy of my lease, access to Canadian bank accounts, and even told them about the account in Canada I didn't have access to, but knew that it existed.
I was able to get Mullick their contact information, as he had datacenter access and knew about most of the wallets and how they worked. When I called receiver first time, they didn't even know what a private key was.
Mullick has been able to recover a good amount of coins, but it is nowhere near what Paul drained. But still, Mullick did work his ass off, as he should have, to recover as much as possible. Paul remotely wiped servers and fled to China, which made things very difficult for the receiver.
I was quiet on forum for so long, because I didn't have real answers at the time and didn't want to spread false information. I could sit and argue with people all day, while none of us knew what happened. Thunderjet was better than myself at blockchain analysis, so I had nothing at the time to contribute, I was in over my head and not able to ACTUALLY prove who did what. So I focused on helping receiver where I could as that was the only thing at the time in my mind that would help get anyone anything back at all. As fucked up as it sounds, I appreciate the work done in the forum here, even if we all butted heads, some very solid evidence came out of it.
I did show the information from the thread to the receiver, and told him the blockchain analysis Gleb and Thunderjet did was legit and they needed to pay attention to it. I gave the receiver absolutely anything I could.
For me, on a personal level, what hurt me the most, was my bosses leaving and not telling me or anyone else that I know of, what was truly up. They left a couple months before shit went really bad and claimed it was other work opportunities, while at the same time putting me on PR duty literally double fucking me.
Because I can't code , nor do I know computer networking, only numbers I could see were ones in admin, and they were all falsified. I saw things coming in and going out, although very very slowly, so I thought maybe it was a tech issue. Obviously I went full retard in believing it.
Also, to clear things up, I was never "Head of Security" or anything like that. I worked in compliance investigations, strictly KYC, AML and Anti terrorist financing, along with some PEP work. As far as me " amassing ID and selling it on darkweb" That is a completely false statement Gleb made and I defy to show one shred of proof showing anything from cryptsy for sale on darkweb. Granted, it is something someone malicious would do, but I did not. I understand why he would think it. The thing that confused people with me and security was the fact that I helped on userend security through support. I helped people get unhacked on their end, setting up 2fa and all that shit. I had nothing to do with site security as I have no idea about actually doing that stuff.
Anyway, I could ramble on forever, but there is no need to. There IS a class action. The receiver was able to recover Paul's new house, an SUV, some computers and office stuff from a storage locker I believe, a diamond ring worth over 100k and some other small things. I know it doesn't cover everything lost, but as far as some people at least getting a bit back, it's not too bad. People need to join the class action.
There is a website for the receivership :
www.cryptsyreceivership.com. It lists up to date court documents, contact info for receiver and everything else. In one of the newest documents here :
http://cryptsyreceivership.com/v1/wp-content/uploads/2016/06/Oct-26-2106-Class-Action-and-Receivership-Settlement-Agreement.pdf , starting at about page 38, there are application forms for people to get into the class action. It has instructions and everything. I suggest giving all of the documents a good read, some solid info in there.
Did I fuck up by believing my employer? Absolutely. Do I feel like a dick for sending out cease and desists? yes, but it was my job. I was told, these guys are slandering us, send a c&d. Was I told the severity of things? No. It was a shitty scenario all around. Did cryptsy stiff me with bills and paycuts for the last while at the end? Yes. Does that matter? no. I did work there so I didn't deserve to get anything out. Nobody who worked there did, before every last customer was paid in full.
You can read all the reports and maybe get a better idea of what happened in the backend. I do not know 100% if it is only US citizens allowed in suit, but it is worth a shot for anyone to throw whatever they can in. Although 1-2 million is a small amount, it is a victory in what could have been a complete lockout and some people are at least able to get something back. In the reports, it says lawyers can take no more than 33% of the final amount, so there is some money people will get back, but they NEED to join the suit in order to get their share. Even without screenshots, I believe people can "oath" on their amounts and still get in on it. Is it ideal? hell no. Is it better than absolutely nothing? for sure.
Here is the receivers site information :
http://cryptsyreceivership.com/court-documents/ On the site you can see the people to contact for the receivership.
Silver Law is running the class action. David Silver can be emailed at
dsilver@silverlaw.com. I strongly urge everyone to get in touch with them and try to get in on the class action.
Anyway, That is the info I know. I said I would post once I knew 100% what was up. It took a long time, but those reports and talking with the receiver and learning what they knew really helped me understand it, hopefully it does the same for you and others.
Sorry shit went down the way it did, but I know that an apology changes nothing.
Take care.
