CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[TGH]

My last somewhat substantial withdrawal of slightly less than a BTC came through for me this morning. I'm just letting people know it is possible that your withdrawals will be processed. If it helps anyone, this posts shows the steps that I took...
https://bitcointalk.org/index.php?topic=1217578.msg12803625#msg12803625

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[BitcoinCharlie]

Shapeshift - but it must be KYC soon surely since US based?  Its that correct?

I don't know if KYC would kick in or not. I'm not sure that Shapeshift ever technically has "custody" of any funds. As soon as funds are confirmed the converted funds go out, right?

Cryptsy has fiat and custody...a different ball game...

[NABiT]

Shapeshift - but it must be KYC soon surely since US based?  Its that correct?

Switzerland I believe

[LeChatNoir]

25 days and still nothing from these assholes!
At this point it is clear they don't have the coins and the recent "wallet-run" has put them in financial distress.
I don't care about my money anymore, i just hope they go bankrupt.
THIEVES!

[Tstar]

25 days and still nothing from these assholes!
At this point it is clear they don't have the coins and the recent "wallet-run" has put them in financial distress.
I don't care about my money anymore, i just hope they go bankrupt.
THIEVES!

I'm sorry for your situation but this sounds like another fractional-reserve scam in the btc exchanges world.

[cohnhead]

For small fee, i can possibly help users withdraw. not sure it will work for anyone else but i was able to withdraw (not transfer) from one crypsty account to another...then off exchange. I have no problem using trusted escrow where i put up equal value before trying.

[CryptoNick]

For small fee, i can possibly help users withdraw. not sure it will work for anyone else but i was able to withdraw (not transfer) from one crypsty account to another...then off exchange. I have no problem using trusted escrow where i put up equal value before trying.

If you use your account you now have the reported income so be careful.

The problem with these Exchanges only NOW requiring a hold is that before the holding requirement was put in place users had sent their funds in. So a user could have sent in 10 BTC and have trades and paid transaction fees for only to NOW have funds held for ransom to prove who they are. Cryptsy never asked who you were when you sent the funds in. All that needed to be done was an Addition of the amount of BTC or Alt Coins transacted in to Cryptsy and current value in BTC to acquire a base that you could legally move out before having funds blocked from transfer. Only if you wanted to get FIAT out should you have a hold or any requirement of verification into who you are!

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

[cohnhead]

For small fee, i can possibly help users withdraw. not sure it will work for anyone else but i was able to withdraw (not transfer) from one crypsty account to another...then off exchange. I have no problem using trusted escrow where i put up equal value before trying.

If you use your account you now have the reported income so be careful.

The problem with these Exchanges only NOW requiring a hold is that before the holding requirement was put in place users had sent their funds in. So a user could have sent in 10 BTC and have trades and paid transaction fees for only to NOW have funds held for ransom to prove who they are. Cryptsy never asked who you were when you sent the funds in. All that needed to be done was an Addition of the amount of BTC or Alt Coins transacted in to Cryptsy and current value in BTC to acquire a base that you could legally move out before having funds blocked from transfer. Only if you wanted to get FIAT out should you have a hold or any requirement of verification into who you are!

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

I understood that when I sent in verification material I would no longer be anonymous and that if they were legit, there would be a time when they would have to begin to report info to regulators.  Maybe that deadline is fast approaching and there is this rush on their part to comply. Anyway with all the trading losses I have had, income from this proposal would be very welcome and would mostly likely not come close to offsetting said losses. 

[BitcoinCharlie]

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."

Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...

[Xardas2014]

Biggest bunch of morons I've ever encountered.........and I don't mean Cryptsy

[vancefox]

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."

Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...

I'm getting back in the game after a week out... and got slammed with the whole "25/100 limits".  Only reason for this "increased scrutiny" is a need to reduce withdrawals.  Why?  Don't know... but the only outcome to this crap is reduced withdrawals.

Luckily I only have <10usd worth of btc on that exchange... and I don't plan on making that number go up... but instead making it go to 0.

[Gleb Gamow]

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."

Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...

http://economictimes.indiatimes.com/news/international/business/bitcoin-exchange-mtgoxs-ceo-mark-karpeles-spent-embezzled-funds-on-prostitutes-reports/articleshow/49563926.cms

"Hello, Madam Butterfly. Big Vern, here. Hey, can you send me over them same two girls I got the other day? Great! I baked apple pies for them just like I promised I would. Mark? Never heard of him."

[RoomBot]

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."

Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...

I'm getting back in the game after a week out... and got slammed with the whole "25/100 limits".  Only reason for this "increased scrutiny" is a need to reduce withdrawals.  Why?  Don't know... but the only outcome to this crap is reduced withdrawals.

Luckily I only have <10usd worth of btc on that exchange... and I don't plan on making that number go up... but instead making it go to 0.

 NOTE:    This guy knows numbers.

[tempus]

Does anybody know what happened to coinfire?

http://coinfire.io  ------> https://99bitcoins.com ?

[tempus]

Does anybody know what happened to coinfire?

http://coinfire.io  ------> https://99bitcoins.com ?

Found the answer: https://medium.com/@EditorMJ/moving-forward-25f11a51fdfd#.maanbpccu

[vancefox]

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."

Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...

I'm getting back in the game after a week out... and got slammed with the whole "25/100 limits".  Only reason for this "increased scrutiny" is a need to reduce withdrawals.  Why?  Don't know... but the only outcome to this crap is reduced withdrawals.

Luckily I only have <10usd worth of btc on that exchange... and I don't plan on making that number go up... but instead making it go to 0.

 NOTE:    This guy knows numbers.

And I'll be looking at those numbers in the near future... I really don't see a valid reason for the new non-FIAT tiers as FIAT, in my opinion, is the only monetary/high value product that is currently under the purview of KYC being traded at Cryptsy...

i.e.
https://www.pwc.com/gx/en/financial-services/assets/pwc-kyc-anti-money-laundering-guide-2013.pdf

Go to page 37 for the relevant US mandates as Cryptsy is based in the US.

Very clear that non-FIAT transactions of low value goods (i.e. altcoins) don't apply.

(a) Banking; (b) Other financial Services; (c) Non financial sector (e.g. casinos, high value goods
etc.)

What else is clear... if they decide to state that altcoins are indeed high value assets then there is no "limit" that they can put in place to be outside KYC...  See question 8 on page 38.

Are there minimum transaction thresholds, under which customer due diligence is not required?
If Yes, what are the various thresholds in place?

No - basic due diligence is required for all accounts/customers regardless of transaction amounts.

Either way, I believe their claim(s) are fake and also believe that this further shows that Cryptsy is only reducing withdrawals as I previously opined.

[cohnhead]

There is no Fractional Reserve unless they ran off with the BTC, all of the Coin that is being asked to withdraw has been sent into the Exchange so it should be there with no restriction. Only restriction should be on FIAT period.

There absolutely could be a fractional reserve problem. If Cryptsy was using phantom coins to game markets in an effort to try to make money for themselves there could be big problems quickly if there was a "bank run."

Further, there is no transparency at Cryptsy w/r/t the wallets, so who really knows what goes on behind the curtain...

I'm getting back in the game after a week out... and got slammed with the whole "25/100 limits".  Only reason for this "increased scrutiny" is a need to reduce withdrawals.  Why?  Don't know... but the only outcome to this crap is reduced withdrawals.

Luckily I only have <10usd worth of btc on that exchange... and I don't plan on making that number go up... but instead making it go to 0.

 NOTE:    This guy knows numbers.

And I'll be looking at those numbers in the near future... I really don't see a valid reason for the new non-FIAT tiers as FIAT, in my opinion, is the only monetary/high value product that is currently under the purview of KYC being traded at Cryptsy...

i.e.
https://www.pwc.com/gx/en/financial-services/assets/pwc-kyc-anti-money-laundering-guide-2013.pdf

Go to page 37 for the relevant US mandates as Cryptsy is based in the US.

Very clear that non-FIAT transactions of low value goods (i.e. altcoins) don't apply.

(a) Banking; (b) Other financial Services; (c) Non financial sector (e.g. casinos, high value goods
etc.)

What else is clear... if they decide to state that altcoins are indeed high value assets then there is no "limit" that they can put in place to be outside KYC...  See question 8 on page 38.

Are there minimum transaction thresholds, under which customer due diligence is not required?
If Yes, what are the various thresholds in place?

No - basic due diligence is required for all accounts/customers regardless of transaction amounts.

Either way, I believe their claim(s) are fake and also believe that this further shows that Cryptsy is only reducing withdrawals as I previously opined.

That is a very good interpretation of the seemingly relevant passages pertaining to kyc anti money laundering guidelines and how they may or may not apply to cryptsy. It is also quite possible that lawyers and kyc consultants who are advising cryptsy have a different opinion. Or they may be out of money, I guess time will tell.  Didn't gox have $5 million seized by US authorities for non compliance...possibly helping facilitate their downward spiral.

[LeChatNoir]

Someone would please explain me why these assoholes still refuse to put in contact with me, still refuse to verify my account and to process my withdrawals after 26 days?

Note: i've never touched fiat on their ******* exchange, i'm not a terrorist, i'm not a drug smuggler, i'm just someone who was market making 20/25 altcoins for these assholes before i decided to test them.

[thoth-Atlantian]

I don't think it is in the interest of Cryptsy to hold off on withdraws as that's how they make money now it's fee free trading. withdraw fee's I doubt the advertising covers costs, Unless of course they have spent every ones coins and don't give a fuck

[Spoetnik]

So when do we see proof of a lawsuit ?