CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[seedooroff]

You want proof?))) In the last 20 minutes: Horus confessed in chat about the theft and shortage on the accounts balances.

I was skyefox, I am the one Horus banned for talking about that stuff. He even admits there was a glitch driving people negative, but those scammers just tell me "JUST DEPOSIT MORE BTC TO BRING ACCOUNT POSITIVE".

Picture of Horus admitting glitch shortly after banning me while all the newbs ask "HOW CAN HE GO NEGATIVE THAT CAN't HAPPEN RIGHT?!?!?!" yes it fucking can! Because they coded their site to allow it when it's convenient for them!  http://imgur.com/XTD5QBs

Incidentally, it is strange that you have a balance, if you are from the exchange could not withdraw funds. I thought you took the attack to the site ....

[grv]

Im rather new to this forum, but I am not all that new to the crypto world. I think you are on to some things here as far as the exchanges and the scams. I predicted much the same but this was all in my head. I got scammed by cryptsy last year when they "had a glitch that allowed me to go .46 btc negative" while DOGE crashed and my account was loaded with them.... fuck the optimism, tell people how it is. Scammers are smart and they need some pushback, we can not allow this to continue in the cryptoworld.

yeah that was one of their thieving scams, they stole 5k from me that way (executed single order three times, getting my account into negative balance, then refused to revert the two imaginary orders their system created and held all my funds hostage until i paid the ransom)
and then it took them 8 months! to process one withdrawal

needless to say, i have been warning people to stay away from craptsy ever since

[cohnhead]

Im rather new to this forum, but I am not all that new to the crypto world. I think you are on to some things here as far as the exchanges and the scams. I predicted much the same but this was all in my head. I got scammed by cryptsy last year when they "had a glitch that allowed me to go .46 btc negative" while DOGE crashed and my account was loaded with them.... fuck the optimism, tell people how it is. Scammers are smart and they need some pushback, we can not allow this to continue in the cryptoworld.

yeah that was one of their thieving scams, they stole 5k from me that way (executed single order three times, getting my account into negative balance, then refused to revert the two imaginary orders their system created and held all my funds hostage until i paid the ransom)
and then it took them 8 months! to process one withdrawal

needless to say, i have been warning people to stay away from craptsy ever since

5k as in dollars?.  I got caught in that glitch too...I have to look at trading history to remind myself what happened. Forget the particulars and it wasn't a lot..so I just let it go. At the time I wasn't thinking it effected everyone....i guess if you multiply that by 300,000 users that's a lot of btc.

[eddie13]

I experienced a similar glitch selling an alt and it sold double and gave me a negative balance of that alt. I sold in the first place because the price was going down and it effectively shorted more for me so it actually resulted in my favor.

[CryptoNick]

Like so many others, I just received a 1 year ban from chat at Cryptsy.

I knew it would be best for me to just keep my mouth shut and let chat scroll by, but some poor guy came in there wondering when he would receive his 2 BTC withdrawal, so I told him my personal experiences from cryptsy.

I must explain some context here so we understand what the Admin was talking about, I can't believe he openly admitted he would lock my account with my money in it, essentially admitting he would steal money from me.

What happened is last year when DOGEcoin was extremely volatile I was trading it while it rose. I would buy and sell and profit. Then suddenly when I placed a buy order, cryptsy had my account put in a buy order for DOUBLE THE AMOUNT that I was able to afford. Example - I only had enough BTC to buy 100k DOGE and it placed the order for 200K DOGE and  put me -.46btc.  Obviously I can't have a negative balance so I emailed support. During this time DOGE coin tanks, and since I am waiting for reply from cryptsy to resolve my negative balance I sit and wait. Now think about it, since I have double what I am supposed to have everytime DOGE drops 1 satoshi I am actually losing 2 satoshis.

I SHOULD NEVER BE ABLE TO GO INTO THE NEGATIVE SINCE NO COIN CAN HAVE A NEGATIVE VALUE. If I buy 100000 coins at .0001 and they drop to .00000000000000000000000000000000001. I still would not have a negative balance. 

In this link there is 3 pictures. One showing the trades completing,at 213 satoshis, buying more than I should have been allowed with .46 btc. One showing the result on my BTC balance, and the 3rd picture showing my conversation in the Cryptsy Chat from today 11-30-15 after I started blowing it up telling people that cryptsy drove one account negative. That asshole actually said he would lock my 2nd account with funds because they drove my first account into the negative? Are you effin kidding me?   http://imgur.com/a/lIdCc

That is amazing they even allow it to happen, but since they allowed it to happen you do not have to put money in to bring the account positive. If Cryptsy allowed your account to fund over the amount that was in it, Cryptsy wanted to trade on the markets with you! They take the loss then.

This would also show why they would be insolvent since there are double and triple amounts of trades and on alt coins that are volatile. Looks like this may be a hint to the problem. If someone deposits BTC to bring their account positive then another account can get their funds out. Since anyone who just deposits BTC needs to be 1 to 1 they may be letting the system recover at the cost of the accounts in negative status? The only accounts that would show the problem are the negative accounts, the positive ones have taken the money and ran.

[Gleb Gamow]

Like so many others, I just received a 1 year ban from chat at Cryptsy.

I knew it would be best for me to just keep my mouth shut and let chat scroll by, but some poor guy came in there wondering when he would receive his 2 BTC withdrawal, so I told him my personal experiences from cryptsy.

I must explain some context here so we understand what the Admin was talking about, I can't believe he openly admitted he would lock my account with my money in it, essentially admitting he would steal money from me.

What happened is last year when DOGEcoin was extremely volatile I was trading it while it rose. I would buy and sell and profit. Then suddenly when I placed a buy order, cryptsy had my account put in a buy order for DOUBLE THE AMOUNT that I was able to afford. Example - I only had enough BTC to buy 100k DOGE and it placed the order for 200K DOGE and  put me -.46btc.  Obviously I can't have a negative balance so I emailed support. During this time DOGE coin tanks, and since I am waiting for reply from cryptsy to resolve my negative balance I sit and wait. Now think about it, since I have double what I am supposed to have everytime DOGE drops 1 satoshi I am actually losing 2 satoshis.

I SHOULD NEVER BE ABLE TO GO INTO THE NEGATIVE SINCE NO COIN CAN HAVE A NEGATIVE VALUE. If I buy 100000 coins at .0001 and they drop to .00000000000000000000000000000000001. I still would not have a negative balance.  

In this link there is 3 pictures. One showing the trades completing,at 213 satoshis, buying more than I should have been allowed with .46 btc. One showing the result on my BTC balance, and the 3rd picture showing my conversation in the Cryptsy Chat from today 11-30-15 after I started blowing it up telling people that cryptsy drove one account negative. That asshole actually said he would lock my 2nd account with funds because they drove my first account into the negative? Are you effin kidding me?   http://imgur.com/a/lIdCc

That is amazing they even allow it to happen, but since they allowed it to happen you do not have to put money in to bring the account positive. If Cryptsy allowed your account to fund over the amount that was in it, Cryptsy wanted to trade on the markets with you! They take the loss then.

This would also show why they would be insolvent since there are double and triple amounts of trades and on alt coins that are volatile. Looks like this may be a hint to the problem. If someone deposits BTC to bring their account positive then another account can get their funds out. Since anyone who just deposits BTC needs to be 1 to 1 they may be letting the system recover at the cost of the accounts in negative status? The only accounts that would show the problem are the negative accounts, the positive ones have taken the money and ran.

Cryptsy would tell you that everybody who were overpaid, repaid the overpayments in full, and that they're only experience normal everyday hiccups, with them being insolvent as ONLY a rumor perpetuated by trolls.

[Spoetnik]

You guys forget about the points hack ? ..and roll backs (was mentioned on their Twitter)

I kept trying to get Bitjohn's attention because i was double credited on a cancelled order before.
it was around late 2013 and it was super small worthless amount of coins
but i was trying to let him know and he didn't want to hear it.. got cranky with me LOL
i never was asked to give the coins back.. probably cause they were worth like a cent or something.

Point being is these guys earlier ARE believable.. i seen it happen.
Over time i had seen a lot of guys making crazy claims about being able to make weird withdrawals.
They would often post screen cap's.

if it's a bug in their system i don't see why the user has to be punished.
It's their screw-up.. they should take the loss.

I have seen so much bugginess when cancelling orders and your coins vanishing after.
People might click the button more than once thinking they didn't hit it the first time etc.
This is not really a malicious end-user thing..
I also wouldn't expect people to catch on and be honest and give the coins back.
It's not like everyone audits all their trade activity to check if each coins is accounted for.

When i have been trading i usually flew by the seat of my pants..
I paid little attention to numbers more was i making a profit overall.
Lots of flippin and arb'ing moving coins in and out and not paying attention to the fine details.
I bet other people trade like that too.
So not every guy would notice he got coins that he shouldn't have.
Until your account is locked and your treated like a thief and forced to pay back coins
or Mullick / Horus will threaten you with a collection agency (how that works in crypto i have no idea)

Their policy on those matters are silly nonsense.

[Gleb Gamow]

Humor at the expense of Frankie MacDonald: https://www.youtube.com/user/dogsandwolves/videos (I love this guy!)

https://en.wikipedia.org/wiki/Frankie_MacDonald

[Spoetnik]

Oh shit he was on Tosh.0 ?
Damn he puts a lot of us Canadians on his show LOL
I am still catching up with watching the last dozen ep's i missed.

I never heard of that guy and Wikipedia said he was on Daniel Tosh's show (if guys didn't get my point)
Mr. Tosh is awesome.. he' such an asshole.. he's my role model ROFL
He says what we're all thinking but afraid to say !

I bet Frankie agrees with Mr. Lahey about this topic.. There is a Cryptsy Shit-Storm a coming !
Trailer park boys reference ?
Yup.. Canadian hahahha

We drink too much Beaver-Wine sorry 'Merica ..and YES that is a thing
We have fermented beaver wine and Pork infused cigarettes too !
Shit gets crazy up in here.. i seen guys spraying Lysol into a big milk jug then adding water and drinking it.
We're HARD !
We roll like ganster's up in here !

Cryptsy ? ohh snap son.. now ya gone and dun it !
It's on now man i got my balls up and i'm about to get all Canadian up in your ass !
What you gonna do when the red white and not blue run wild on you Cryptomaniacs ? ARRRGGGGHHHHH !!!11ONE

[Spoetnik]

https://bitcointalk.org/index.php?topic=421615.msg12913456#msg12913456

THAT has become a thing with them i noticed.
I never heard of that crap up until more recently.
I can't imagine they would have ever gotten popular in the first place doing shit like that.
I think the old school guys back in the day would have raged !

What am i talking about ?

Otoh - Donator / Legendary ..said

They did send 100 DASH & 3.4 BTC to me just now, only 900 DASH & 70 odd BTC to go,
so it doesn't seem like they plan to steal them,
just hopeless communications and support, plus dysfunctional withdrawals process.

https://chainz.cryptoid.info/dash/address.dws?Xm1CXCAaberUUK4mVYVh9SqxUuMSMxHERb.htm

https://blockchain.info/address/1otohotohMoQoxHuxLBveQiZcV3Pji3Tc

And you know i got all wound up for a legendary Spoetnik Rant™ and .. well.. i am actually speechless

[Gleb Gamow]

Oh no Otoh still hasn't gotten his money out of cryptsy... this is ridiculous.

https://www.reddit.com/r/Bitcoin/comments/3rvl2a/cryptsy_exchange_warning_unable_to_withdrawal/

As I mentioned before I also had trouble getting BTC out (a much smaller amount). I finally ended up buying dash and moved it out in a series of small withdrawls.

All our pool funds have been frozen at Cryptsy too, all emails /  requests / tickets did not turn out to be of any help, it seems like they're just trying to gain time. We had to stop operations completely because of this unfortunately.

They did send 100 DASH & 3.4 BTC to me just now, only 900 DASH & 70 odd BTC to go, so it doesn't seem like they plan to steal them, just hopeless communications and support, plus dysfunctional withdrawals process.

https://chainz.cryptoid.info/dash/address.dws?Xm1CXCAaberUUK4mVYVh9SqxUuMSMxHERb.htm

https://blockchain.info/address/1otohotohMoQoxHuxLBveQiZcV3Pji3Tc

Otoh received his payout on a Saturday afternoon (CST): https://www.walletexplorer.com/txid/3e3eefcc17866049f5ad49a6547a48e63a3f69534e39ac99f11d739b35d19b1a

~16 hours later, a Sunday morning (CST), Otoh received the exact same payout from Cryptsy: https://www.walletexplorer.com/txid/eac517e84f6416696f38d00c3064dd10f54ae8bd0f733187ee70f1292bf303ac

As best as I can determine, the above stems from https://www.walletexplorer.com/address/13h8HGU28zppCRQ1nnWsVB24iy7ZjLu4D4, of which is funded by http://btc38.com/

[Spoetnik]

Cryptsy i hope you realize who owned your ass.. YES THAT IS REALLY GLEB GAMOW aka Bruno !

NEVER ever fuck with a man with 3 beards !

[Gleb Gamow]

Cryptsy i hope you realize who owned your ass.. YES THAT IS REALLY GLEB GAMOW aka Bruno !

NEVER ever fuck with a man with 3 beards !

That's five beards and donning a bolo with a flat Earth medallion clasp.

[vancefox]

With Homero Garza now being brought to court by the SEC, will he spill whatever beans may or may not be in the Craptsy soup bowl?

[Northstar]

I posted my 2 cents on this topic here:

https://bitcointalk.org/index.php?topic=1206845.msg13117828#msg13117828

Here is the gist of it:

I am going to call it out as it is, Cryptsy is insolvent in terms of BTC, either due to a hack or outright theft by insiders. Either way, we are not being told the truth. There are many things that point to all this. Where do I even begin?

1. The most obvious problem: many, many users are reporting slow withdrawals of BTC. I have been observing the Cryptsy chat for the last two days, as well as other places online and especially since around Nov 25th, no one is getting their BTC withdrawals. It gets stuck in "pending". I myself tried withdrawing 5.5 BTC and it was stuck for half a day. I created a support ticket and it was ignored for a few hours. They responded with the generic "we are working on an issue" that everyone else is getting. I made a DOGE withdrawal around the same time, and that cleared within 5 minutes. So from that and from reading others' responses, I knew some alts withdrawals are working.

2. Not an issue with their site - Their support staff are working, as evidenced by their response to my tickets. Their system receives deposits correctly and timely, and DOGE withdrawals work well too. I withdrew various amounts several times and they all happened within 5 minutes. So the issue is specific to BTC/DASH/ETH and some other more popular coins. Which leads me to believe they simply have no coins to cover the withdrawal requests.

3. Complete silence on the issue: you will not find any statement or anything that remotely resembles an acknowledgement that there is a serious problem. People who cause too much fuss in the chat get banned, some for one year.

4. Big Vern himself posted a tweet on Oct 21st, right around the time when the Tier system was incorporated, that "there are some good deals to be had on Alts right now". This seems like a marketing ploy to boost volume slightly and make money off commissions, but the main added effect would be BTC coffers swelling at the expense of Alt coin wallets. It is possible the problem with solvency has began back then, and it does coincide with the first reports of delayed BTC withdrawals.

5. The importance of trust - from other big sites going belly up, exchange operators know that once users' trust is gone, it can never be fully regained again. If there was a technical issue, like a prolonged DDoS attack, they would have admitted it in a timely manner, everyone has problems once in a while, but admitting to it boosts trust in the user base. In this case, there is complete silence despite a very obvious serious problem, and it's only getting worse. I think the only logical explanation is that Paul Vern knows that the only way to save the ship is "a la pyramid style", if mass panic is avoided and if he can hold off on people withdrawing their BTC for just long enough, he can recuperate enough funds to keep going (in case Cryptsy was hacked). OR, if the funds were stolen by an insider, then he is just buying more time. It is obvious they are trying to avoid a run on the BTC wallet, and it's probably already completely insolvent given that no one has been able to withdraw even the smallest amounts in the last 4-5 days. (I even tried withdrawing small incremental amounts, as small as 0.049 BTC, and still it didn't go through).

Basically, I am confident this is the end of Cryptsy, there is no good reason for what's been happening and the silence on Cryptsy's part. Save your funds and GTFO while you still can. While we are on the subject, here is how I was able to get my ~9btc out of there since yesterday:  buy Doge. Yes, you will take a hit. You only have a couple of viable options where to sell them later, right now you can buy them for 38-39sats on Cryptsy and sell them back on Poloniex for 32-33 sats, the situation is the same on BTC38, you can sell them for CNY and then buy BTC with CNY with the same result. You are losing about 15% in the process. From my research (and I stayed up most of the night yesterday looking at all sorts of options) Doge is the only currency that you can still buy on Cryptsy in large amounts and withdraw without issues.

If you have a stuck pending withdrawal of BTC, you can create a ticket asking to cancel your withdrawal. It's amazing how quickly they responded to 2 such tickets that I created. It's like they don't want you to even try taking out BTC, could it be because they don't have any?

Again, this is one option that you have, take it or leave it, I lost ~1btc in this process but I saved 8, to me it was worth the risk, because I am pretty sure this ship is not salvageable. Their shady practices combined with the fact that this is a wide-spread issue now, leads me to believe Cryptsy is, as of yet, unofficially insolvent.


One more thing, for anyone who wants to know where to look for their coins, here is the Founder and CEO's name and home address:

Paul E. Vernon
8656 Tourmaline Blvd.
Boynton Beach, FL 33472

This is publicly available information that can be discovered by anyone who does a little digging.
I wish everyone best of luck, and I hope this was helpful to at least some of you.

Edit: someone pointed out that this address might be out of date now, please update me if I am wrong. This was the official address of registration of his corp, and it was used early in 2015 again.

[CoinFriend]

If you have questions, I am more than happy to answer what I can, just remember I am not an executive at the site so I won't know answers pertaining to stuff like that. I go on sites like blab to try to keep customers informed of what is going on - same reason I am putting out a weekly newsletter starting this week for customers. I feel communication has lacked in the past and want to step that game up.

So you're going to do "law enforcement" and PR now?

Can you please start by showing a message ON THE CRYPTSY SITE ITSELF, something to the effect "our wallets are fucked, please don't deposit until we unfuck them and by the way your withdrawal request is #10267 in the queue being manually processed at a rate of 87 requests per day."

Yes, an update page is something we are actually currently working on, with daily updates informing customers of any issues etc. I am brand new to this PR position although I have always been active in community. I will be making some changes I hope all of you approve of and enjoy. Thank you.

yo Horus, blah blah blah...

I am waiting more than a day for a RDD withdrawal now!
And there is no update page! Nor a single info about the withdrawal issues, since days!


Yesterday, after my requested transaction went stuck, i looked in the chat and asked the men in blue where were i can get information about the issues.

JShock said, he has announced it, again (in the chat).

He said BTC, LTC and BTCD are affected.

I asked, why are the issues not on the tweets at the first page. It's well known, since days already!

They all could have a easier life, instead of repeating the same excuses all the time in the chat box.

And i've asked them, or does such a statement could affect this ostensible "technical issues" by a negative way maybe?

The tweets and the smiley by BigVern seems not very honest. I could assume there are no problems at the moment...

Then Nordmann told me: Please stop FUD!

And one moment later i was banned from the chat...

So finally i was not able to tell someone that RDD withdrawals not work, like the other coins !

Further i am not sure which one of the chat rules i've hurt!
http://wiki.cryptsy.com/chatrules

I think a ticket i will not release about my issue! Why should i ?

They are aware of the problems in general! And they don't allow honest qestions in the chat box too!

Damn, Cryptsy must have hundreds of tickets with withdrawal issues already...

Further, i don't like that users, who post the ticket number in the chat box, are helped first or preferred. It really looks like that!

Cryptsy! Please check the RDD transactions and your wallet, and process all stuck withdrawals!

Gimme my coins, i want play Dotto at CRYPTOPIA.

Thanks.

[hunterwolf]

i edit my post:

i think their systems diagrams now looks like:

Code:

if(withdraw_coin == DOGE and myMarketDOGEPrice > %20 standartDOGEMarket price){
   process withdraw DOGEamount;
}elseif(withdraw_coin == DGB and myMarketDGBPrice > %20 standartDGBMarket price){
   process withdraw (DGBamount / 2);
}elseif(..){//some other coin
   ...
}else{
   pending withdraw;
   customer need open ticket;
   maybe we confirm or maybe customer cancel it and buy doge-dgb-etc
}

[Gleb Gamow]

I posted my 2 cents on this topic here:

https://bitcointalk.org/index.php?topic=1206845.msg13117828#msg13117828

Here is the gist of it:

I am going to call it out as it is, Cryptsy is insolvent in terms of BTC, either due to a hack or outright theft by insiders. Either way, we are not being told the truth. There are many things that point to all this. Where do I even begin?

1. The most obvious problem: many, many users are reporting slow withdrawals of BTC. I have been observing the Cryptsy chat for the last two days, as well as other places online and especially since around Nov 25th, no one is getting their BTC withdrawals. It gets stuck in "pending". I myself tried withdrawing 5.5 BTC and it was stuck for half a day. I created a support ticket and it was ignored for a few hours. They responded with the generic "we are working on an issue" that everyone else is getting. I made a DOGE withdrawal around the same time, and that cleared within 5 minutes. So from that and from reading others' responses, I knew some alts withdrawals are working.

2. Not an issue with their site - Their support staff are working, as evidenced by their response to my tickets. Their system receives deposits correctly and timely, and DOGE withdrawals work well too. I withdrew various amounts several times and they all happened within 5 minutes. So the issue is specific to BTC/DASH/ETH and some other more popular coins. Which leads me to believe they simply have no coins to cover the withdrawal requests.

3. Complete silence on the issue: you will not find any statement or anything that remotely resembles an acknowledgement that there is a serious problem. People who cause too much fuss in the chat get banned, some for one year.

4. Big Vern himself posted a tweet on Oct 21st, right around the time when the Tier system was incorporated, that "there are some good deals to be had on Alts right now". This seems like a marketing ploy to boost volume slightly and make money off commissions, but the main added effect would be BTC coffers swelling at the expense of Alt coin wallets. It is possible the problem with solvency has began back then, and it does coincide with the first reports of delayed BTC withdrawals.

5. The importance of trust - from other big sites going belly up, exchange operators know that once users' trust is gone, it can never be fully regained again. If there was a technical issue, like a prolonged DDoS attack, they would have admitted it in a timely manner, everyone has problems once in a while, but admitting to it boosts trust in the user base. In this case, there is complete silence despite a very obvious serious problem, and it's only getting worse. I think the only logical explanation is that Paul Vern knows that the only way to save the ship is "a la pyramid style", if mass panic is avoided and if he can hold off on people withdrawing their BTC for just long enough, he can recuperate enough funds to keep going (in case Cryptsy was hacked). OR, if the funds were stolen by an insider, then he is just buying more time. It is obvious they are trying to avoid a run on the BTC wallet, and it's probably already completely insolvent given that no one has been able to withdraw even the smallest amounts in the last 4-5 days. (I even tried withdrawing small incremental amounts, as small as 0.049 BTC, and still it didn't go through).

Basically, I am confident this is the end of Cryptsy, there is no good reason for what's been happening and the silence on Cryptsy's part. Save your funds and GTFO while you still can. While we are on the subject, here is how I was able to get my ~9btc out of there since yesterday:  buy Doge. Yes, you will take a hit. You only have a couple of viable options where to sell them later, right now you can buy them for 38-39sats on Cryptsy and sell them back on Poloniex for 32-33 sats, the situation is the same on BTC38, you can sell them for CNY and then buy BTC with CNY with the same result. You are losing about 15% in the process. From my research (and I stayed up most of the night yesterday looking at all sorts of options) Doge is the only currency that you can still buy on Cryptsy in large amounts and withdraw without issues.

If you have a stuck pending withdrawal of BTC, you can create a ticket asking to cancel your withdrawal. It's amazing how quickly they responded to 2 such tickets that I created. It's like they don't want you to even try taking out BTC, could it be because they don't have any?

Again, this is one option that you have, take it or leave it, I lost ~1btc in this process but I saved 8, to me it was worth the risk, because I am pretty sure this ship is not salvageable. Their shady practices combined with the fact that this is a wide-spread issue now, leads me to believe Cryptsy is, as of yet, unofficially insolvent.


One more thing, for anyone who wants to know where to look for their coins, here is the Founder and CEO's name and home address:

Paul E. Vernon
8656 Tourmaline Blvd.
Boynton Beach, FL 33472

This is publicly available information that can be discovered by anyone who does a little digging.
I wish everyone best of luck, and I hope this was helpful to at least some of you.

Edit: someone pointed out that this address might be out of date now, please update me if I am wrong. This was the official address of registration of his corp, and it was used early in 2015 again.

http://www.co.palm-beach.fl.us/papa/Asps/PropertyDetail/PropertyDetail.aspx?parcel=00424629130003540&





Paul Vernon and his wife put their former piece of shit shack on the market when they moved into you new home worth five times as much.

Reread what I penned about btc38 above: https://bitcointalk.org/index.php?topic=1173703.msg13116943#msg13116943

It's my contention that unlike, say, mining hardware companies not letting their competition know what they'll doing, exchanges must have an open line of communications among themselves so to have the ability to move funds freely, again, among themselves so to remain viable. I believe that Cryptsy and BTC38 are much closer then letting on.

[Northstar]

Excellent, thank you for the info.

Paul Vernon needs to step forward and speak out. The longer the silence, the louder the questions will get.

I am starting to consider a new theory as to what might be going on at Cryptsy, but this is just a thought experiment of mine. I was thinking, it is apparent to me that there is an issue with the BTC and some other wallets right now, and the only issue that could take so long to resolve would be if the problem is that it's empty, or under capacity. What could cause this? A hack, for one, could do it. Outright theft could cause the same problem as well.

But somehow I doubt that a person who until now was a prominent public figure in the crypto world, where everyone knows his identity, and who had been trying to develop a good, reputable business, would be motivated to outright steal funds. Especially if located in the USA. If a theft was perpetrated, I think it would have occurred under different circumstances, much more rapidly, with the site shutting down rather quickly.

A hack is also unlikely, I think Vernon would have taken a different course of action that would have had a lesser fallout. Frankly, I don't know if an outright hack with today's cold wallets and security measures taken would be even possible. And if it were, it would have affected only hot wallets, and Cryptsy would have been able to mitigate the damage. No need to ruin a good business and a cash cow over one hack. Heck, such an occurrence can even be used as PR to further bolster trust, as Bitstamp did early this year.

No, the way I see it, given Paul Vernon's reaction so far, or lack thereof, it's quite plausible that he fucked up in a way that he didn't anticipate. I noticed that the mass withdrawal issues started right around the time of bitcoin's latest bubble a month or two ago. Is it possible that he didn't segregate the BTC and other wallets, and had a short position somewhere using BTC? When BTC moved against him, he was stuck with a loss, thereby wiping out a large portion of the wallet. I would imagine that in his position of control over so much currency, as a mere mortal human being it would be quite tempting to "borrow" some of these funds to trade with and make more money? That might also explain why some wallets are affected, and not others (i.e. Dogecoin seems to be fine). Could he simply have misappropriated the funds out of gross negligence, not necessarily with malicious intent?

Either way, it would be inexcusable. Again, this is just a theory that I have been thinking about, using the bits and pieces that we have now. One thing is for sure, the lack of communication and at the expense of trust in this company clearly points to it being in very serious trouble, and quite likely it is already insolvent. The silence to me means a passive acknowledgment of a serious underlying issue, and it is done only to buy more time.

[Kn_os]

Could anybody look on way btc moved from cryptsy old wallet?
https://www.walletexplorer.com/wallet/Cryptsy.com-old?page=5173
2014.02 cryptsy wallet balance is around 10k btc, then one day there are 7 withdraw for 1k btc each.
All moving on 1A5rrPcb6SWR6nnpEDq8jkJrhvHGZ8CL2s wallet.

Could it be cryptsy cold wallet?
https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

1A5rrPcb6SWR6nnpEDq8jkJrhvHGZ8CL2s and several more wallets with 500+ deposites in 2013 from cryptsy.
with sum around 11k btc in 2014.07 were moved to

18E3AWaadnUPQ1aMpfEoyTXN49NYAZzbpD   [25866d65e9]   1000.          BTC   unspent
1DSxcqygQ69MxRc8oW94kQjWHzMb4BYsnG   [94c06339d5]   1000.          BTC   unspent
1LwZYCt8dDhZDMd6uXGMwVsmWPXW9eX9Ww   [84e18ed8db]   1000.          BTC   unspent
13nAJw8jw7BiYKLnad9YGdPxybK9mgPkM6   [1aa1f09b2f]   1000.          BTC   unspent
1DqCNwUffFTxULH8crehynw53TwrHnrv1c   [ed057b062e]   1000.          BTC   unspent
1AWdxqABYiDxcY1sxzPzEotvjFjq8NUY8Z   [5bb630218a]   1000.          BTC   unspent
18nb1NQCeoZLucMdrNdu2wb7jcyDvSgr3Y   [f319cc9d39]   0.0961      BTC   unspent
13QxkdrhfeQ6aCF4TBWg8knQGBmiwL2rpV   [71450cbe75]   1000.          BTC   unspent
17nmFFPSANbPGgdtoEEuc6xbHoaP1n6ZBb   [a0206f6681]   1000.          BTC   unspent
14nzbWNMPjmvwy96uuFVXtj6VgChJtHvU9   [c139549e61]   1000.          BTC   unspent
1315LzDFcBLDBKgVAr4ZhCkcT5GXivpiuj   [2c53331f1a]   1000.          BTC   unspent
1KBy6MvcBb2qQRS5fQT92o2c5Dq2W6ygx4   [b16b6dbcdb]   1325.          BTC   unspent

All unspend so far, coins still on that wallets.


Or this 11k btc is someone else own?

This coins were never moved back to cryptsy... and cryptsy wallet never restored after it..