CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[Spoetnik]

I noticed this reply late from BitJohn.. it's interesting !
It's about partial withdrawals i think.. CHECK IT OUT GUYS

"What exactly is the withdrawal issue?"

I cannot verify what others have experienced, only myself.  For many of the alt coins there have been withdrawal problems over the last year.  Let's say you put in a withdrawal for 100k FLO.  It would show up as 100k pending.  Then you'd refresh and it would show 50k.  Then 25k.  This happened to me many times, this halving of the number requested.  Then some time around the first of this month it got REALLY bad.  All BTC and LTC withdraws would go straight to pending and be forever "stuck".  A request to cancel the withdrawal would be immediately followed if requested.  A lot people were converting to DOGE to withdraw and then DOGE withdraws started locking up.  Obviously people who arb coins would be the first to notice as their accounts will sometimes get out of balance and have to re-balanced by having to withdraw coin from exchange to exchange.

What your describing is what the programming does to mitigate wallet issues with too many inputs. So you make a withdraw the RPC request hangs. It cuts it in half and tries again (less inputs). It will continue to do that until the RPC call is successful.

So i am wondering is this their explanation why you take out a small amount of say Vertcoins and it works
but if you take out a large amount it fails ?

Tell me what you all think and Cryptsy guys feel free to chime in i promise to be nice
Ok well not JShock though..i don't like him he's a douche ROFL
And i say that on behalf of every guy who has gotten a ban from him since DEC 2013 

[volyova]

I noticed this reply late from BitJohn.. it's interesting !
It's about partial withdrawals i think.. CHECK IT OUT GUYS

"What exactly is the withdrawal issue?"

I cannot verify what others have experienced, only myself.  For many of the alt coins there have been withdrawal problems over the last year.  Let's say you put in a withdrawal for 100k FLO.  It would show up as 100k pending.  Then you'd refresh and it would show 50k.  Then 25k.  This happened to me many times, this halving of the number requested.  Then some time around the first of this month it got REALLY bad.  All BTC and LTC withdraws would go straight to pending and be forever "stuck".  A request to cancel the withdrawal would be immediately followed if requested.  A lot people were converting to DOGE to withdraw and then DOGE withdraws started locking up.  Obviously people who arb coins would be the first to notice as their accounts will sometimes get out of balance and have to re-balanced by having to withdraw coin from exchange to exchange.

What your describing is what the programming does to mitigate wallet issues with too many inputs. So you make a withdraw the RPC request hangs. It cuts it in half and tries again (less inputs). It will continue to do that until the RPC call is successful.

So i am wondering is this their explanation why you take out a small amount of say Vertcoins and it works
but if you take out a large amount it fails ?

Tell me what you all think and Cryptsy guys feel free to chime in i promise to be nice
Ok well not JShock though..i don't like him he's a douche ROFL
And i say that on behalf of every guy who has gotten a ban from him since DEC 2013 

LOLZ you are never "nice". and you are all the better for it.

[BitJohn]

I noticed this reply late from BitJohn.. it's interesting !
It's about partial withdrawals i think.. CHECK IT OUT GUYS

"What exactly is the withdrawal issue?"

I cannot verify what others have experienced, only myself.  For many of the alt coins there have been withdrawal problems over the last year.  Let's say you put in a withdrawal for 100k FLO.  It would show up as 100k pending.  Then you'd refresh and it would show 50k.  Then 25k.  This happened to me many times, this halving of the number requested.  Then some time around the first of this month it got REALLY bad.  All BTC and LTC withdraws would go straight to pending and be forever "stuck".  A request to cancel the withdrawal would be immediately followed if requested.  A lot people were converting to DOGE to withdraw and then DOGE withdraws started locking up.  Obviously people who arb coins would be the first to notice as their accounts will sometimes get out of balance and have to re-balanced by having to withdraw coin from exchange to exchange.

What your describing is what the programming does to mitigate wallet issues with too many inputs. So you make a withdraw the RPC request hangs. It cuts it in half and tries again (less inputs). It will continue to do that until the RPC call is successful.

So i am wondering is this their explanation why you take out a small amount of say Vertcoins and it works
but if you take out a large amount it fails ?

Tell me what you all think and Cryptsy guys feel free to chime in i promise to be nice
Ok well not JShock though..i don't like him he's a douche ROFL
And i say that on behalf of every guy who has gotten a ban from him since DEC 2013 

You can replicate the split withdraw thing on any wallet. Make a coin solo mine the crap out of it into your wallet try sending a large chunk of it to another wallet. The wallet will likely hang due to too many inputs. Long ago some code was added that essentially decided if the output wont send to try again splitting the withdraw amount, and it will repeat until coins are sent. Was not really an issue until the new fees system they put in.

Now what really should be done is the process will repeat itself until the entire withdraw is fulfilled while charging the correct amount.....

[peonminer]

BitJohn, I know you don't work there anymore; Maybe though, you have a clue why the ETH wallet is making TXID's for withdrawals yet they aren't showing up on the blockchain?

[BitJohn]

BitJohn, I know you don't work there anymore; Maybe though, you have a clue why the ETH wallet is making TXID's for withdrawals yet they aren't showing up on the blockchain?

Custom integration, and bugs. Keep poking at them it'll get fixed.

[Spoetnik]

Thanks for letting us know what you think BitJohn.
I was pretty damn surprised to see you chime in.
But as you can see i quoted you before to be fair here to people.
I didn't post that to be a dick but rather *try and help explain maybe why that happens.
So yeah i was trying to be nice LOL

BitJohn do you have any thoughts why so many people may be complaining right now ?
Any complaint i have with Cryptsy was 1 year+ ago..
But a LOT of guys are bitching and moaning something really doesn't seem right BJ.
I am not saying that to be a dick nor to try and jump on you about the issues BitJohn (I'm sure Gleb has that covered LOL)
And i know if you left you may have to watch what you say.. but figured i'd give it a shot and ask.

BitJohn would you advise people to continue using Cryptsy ?

[peonminer]

BitJohn, I know you don't work there anymore; Maybe though, you have a clue why the ETH wallet is making TXID's for withdrawals yet they aren't showing up on the blockchain?

Custom integration, and bugs. Keep poking at them it'll get fixed.

Thanks. I have faith they'll get it sorted for everyone. I would just rather have my ETH right now so I could convert to BTCitcoin on another exchange. This next pump is going to be Godlike.

[BitJohn]

Thanks for letting us know what you think BitJohn.
I was pretty damn surprised to see you chime in.
But as you can see i quoted you before to be fair here to people.
I didn't post that to be a dick but rather *try and help explain maybe why that happens.
So yeah i was trying to be nice LOL

BitJohn do you have any thoughts why so many people may be complaining right now ?
Any complaint i have with Cryptsy was 1 year+ ago..
But a LOT of guys are bitching and moaning something really doesn't seem right BJ.
I am not saying that to be a dick nor to try and jump on you about the issues BitJohn (I'm sure Gleb has that covered LOL)
And i know if you left you may have to watch what you say.. but figured i'd give it a shot and ask.

BitJohn would you advise people to continue using Cryptsy ?

Honestly I'm pretty done with altcoins and crypto altogether probably keep tabs on Bitcoin. But the banking and government regulation is just killing the fun in it all. So Id tell anyone I knew not to get into crypto if that answers your question haha.

I think Polo, Bittrex and Cryptsy will get crushed by regulation and get run out of the scene by the Geminis of the world (banks).

[Gleb Gamow]

https://www.cryptsy.com/drawings



Hey, BitJohn, is the above legal?

[milly6]

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0800-0899/0849/0849.html

849.09 Lottery prohibited; exceptions.—
(1) It is unlawful for any person in this state to:
(a) Set up, promote, or conduct any lottery for money or for anything of value;
(b) Dispose of any money or other property of any kind whatsoever by means of any lottery;
(c) Conduct any lottery drawing for the distribution of a prize or prizes by lot or chance, or advertise any such lottery scheme or device in any newspaper or by circulars, posters, pamphlets, radio, telegraph, telephone, or otherwise;
(d) Aid or assist in the setting up, promoting, or conducting of any lottery or lottery drawing, whether by writing, printing, or in any other manner whatsoever, or be interested in or connected in any way with any lottery or lottery drawing;
(e) Attempt to operate, conduct, or advertise any lottery scheme or device;
(f) Have in her or his possession any lottery wheel, implement, or device whatsoever for conducting any lottery or scheme for the disposal by lot or chance of anything of value;
(g) Sell, offer for sale, or transmit, in person or by mail or in any other manner whatsoever, any lottery ticket, coupon, or share, or any share in or fractional part of any lottery ticket, coupon, or share, whether such ticket, coupon, or share represents an interest in a live lottery not yet played or whether it represents, or has represented, an interest in a lottery that has already been played;
(h) Have in her or his possession any lottery ticket, or any evidence of any share or right in any lottery ticket, or in any lottery scheme or device, whether such ticket or evidence of share or right represents an interest in a live lottery not yet played or whether it represents, or has represented, an interest in a lottery that has already been played;
(i) Aid or assist in the sale, disposal, or procurement of any lottery ticket, coupon, or share, or any right to any drawing in a lottery;
(j) Have in her or his possession any lottery advertisement, circular, poster, or pamphlet, or any list or schedule of any lottery prizes, gifts, or drawings; or
(k) Have in her or his possession any so-called “run down sheets,” tally sheets, or other papers, records, instruments, or paraphernalia designed for use, either directly or indirectly, in, or in connection with, the violation of the laws of this state prohibiting lotteries and gambling.

LOCK THIS MOTHERFUCKIN' THREAD! Seriously, anybody with half a brain can clearly see that Paul Vernon's (BigVern) Cryptsy is legally operating a lottery alongside his legit cryptocurrency exchange.

/s

 Pretty sure theres a big difference between a "lottery" and a raffle

[Gleb Gamow]

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0800-0899/0849/0849.html

849.09 Lottery prohibited; exceptions.—
(1) It is unlawful for any person in this state to:
(a) Set up, promote, or conduct any lottery for money or for anything of value;
(b) Dispose of any money or other property of any kind whatsoever by means of any lottery;
(c) Conduct any lottery drawing for the distribution of a prize or prizes by lot or chance, or advertise any such lottery scheme or device in any newspaper or by circulars, posters, pamphlets, radio, telegraph, telephone, or otherwise;
(d) Aid or assist in the setting up, promoting, or conducting of any lottery or lottery drawing, whether by writing, printing, or in any other manner whatsoever, or be interested in or connected in any way with any lottery or lottery drawing;
(e) Attempt to operate, conduct, or advertise any lottery scheme or device;
(f) Have in her or his possession any lottery wheel, implement, or device whatsoever for conducting any lottery or scheme for the disposal by lot or chance of anything of value;
(g) Sell, offer for sale, or transmit, in person or by mail or in any other manner whatsoever, any lottery ticket, coupon, or share, or any share in or fractional part of any lottery ticket, coupon, or share, whether such ticket, coupon, or share represents an interest in a live lottery not yet played or whether it represents, or has represented, an interest in a lottery that has already been played;
(h) Have in her or his possession any lottery ticket, or any evidence of any share or right in any lottery ticket, or in any lottery scheme or device, whether such ticket or evidence of share or right represents an interest in a live lottery not yet played or whether it represents, or has represented, an interest in a lottery that has already been played;
(i) Aid or assist in the sale, disposal, or procurement of any lottery ticket, coupon, or share, or any right to any drawing in a lottery;
(j) Have in her or his possession any lottery advertisement, circular, poster, or pamphlet, or any list or schedule of any lottery prizes, gifts, or drawings; or
(k) Have in her or his possession any so-called “run down sheets,” tally sheets, or other papers, records, instruments, or paraphernalia designed for use, either directly or indirectly, in, or in connection with, the violation of the laws of this state prohibiting lotteries and gambling.

LOCK THIS MOTHERFUCKIN' THREAD! Seriously, anybody with half a brain can clearly see that Paul Vernon's (BigVern) Cryptsy is legally operating a lottery alongside his legit cryptocurrency exchange.

/s

 Pretty sure theres a big difference between a "lottery" and a raffle

(7) Any organization that engages in any act or practice in violation of this section commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083. Any organization or other person who sells or offers for sale in this state a ticket or entry blank for a raffle or other drawing by chance, without complying with the requirements of paragraph (3)(d), commits a misdemeanor of the second degree, punishable by fine only as provided in s. 775.083.

[Spoetnik]

Bitjohn i am happy you came by to talk to us but i was hoping for a far less evasive answer

I am a man of context though so i can't envision you coming here to bad mouth Cryptsy all things considered.
But one could take what you said with a hint of sorts almost.
BitJohn YOU speak in riddles aahhaha

I wouldn't tell my friends / family to get into Altcoin stuff either.
I had them ask looong ago and i basically said just "Google it" LOL

Well the topic ?
I don't see much point in prying for an answer i know i will not get.. BUT !
I had an interesting thought just now (for you BitJohn)

BitJohn have you entertained the possibility your former employer *may" go full Gox on us ?
Because i think the other guys (staff) seem to think that is outside the realm of possibility.
Like have you thought it *could happen and how you would handle it ?
If he (BigVern) did i bet it would ramp up heat on you as being a long time Cryptsy employee.
So have you considered how you would react if that occurred ?
Maybe you already have and already know and already thought of that and we're seeing it now ?

I have said i never thought Mark from MTgox planned on screwing anyone around.
I firmly believe he painted himself into a corner and was eventually partially insolvent and had to make a move.
What he *chose* to do is close the site and run off with the Bitcoin..
Then later get his lawyer to say he found 150k in his couch. (he really did say that and it was on a USB drive)
And to be honest i might do the same in Mark's shoes..
It's tough to sit on such huge amounts of money and say you would not want to keep it LOL

Actually i am pretty sure i would do what Mark did.. i think i WOULD take the coins to be totally honest guys.

I probably would justify it in my head with a sense of self entitlement for all my years of hard work..
I would consider it my Crypto-Gold Watch and retirement bonus ROFL
How many guys would walk away with millions in Bitcoin if you knew you could get way with it ?

And Mark did.. last i seen of him was on a Coindesk News story..
That was about Mark Tweeting on the beach with a martinee posting about the beautiful sunset.
Mark from Gox rode into the sunset flush with Bitcoin and a martinee in each hand and a grin on his face !

Ever seen The Shaw Shank Redemption Guys ?

Mark is waiting for Paul on the beach RIGHT NOW !

[worhiper_-_]

I see that mintsy linked is in your twitter account still (perhaps you should fix that BitJohn  ). I still wonder what happened to that venture, If I remember correctly the hashrate providers backed out of the deal but what were your actions after that? Did you try to pursue them legally? It felt like customers were duped out of their money and you did little to accommodate. I had money there, but I now consider it long gone. OFC I wouldn't mind having it back but right now I just thought it was a good chance to ask you about mintsy in general.

[BitJohn]

https://www.cryptsy.com/drawings



Hey, BitJohn, is the above legal?

Probably only because its nearly impossible to define exactly what it is... Points are a reward program so you get them free or buy them from someone else right? Then you can win. If anything its in the same category as fantasy football weekly winner shit. Worst case they get told not to do it anymore.

[BitJohn]

Bitjohn i am happy you came by to talk to us but i was hoping for a far less evasive answer

I am a man of context though so i can't envision you coming here to bad mouth Cryptsy all things considered.
But one could take what you said with a hint of sorts almost.
BitJohn YOU speak in riddles aahhaha

I wouldn't tell my friends / family to get into Altcoin stuff either.
I had them ask looong ago and i basically said just "Google it" LOL

Well the topic ?
I don't see much point in prying for an answer i know i will not get.. BUT !
I had an interesting thought just now (for you BitJohn)

BitJohn have you entertained the possibility your former employer *may" go full Gox on us ?
Because i think the other guys (staff) seem to think that is outside the realm of possibility.
Like have you thought it *could happen and how you would handle it ?
If he (BigVern) did i bet it would ramp up heat on you as being a long time Cryptsy employee.
So have you considered how you would react if that occurred ?
Maybe you already have and already know and already thought of that and we're seeing it now ?

I have said i never thought Mark from MTgox planned on screwing anyone around.
I firmly believe he painted himself into a corner and was eventually partially insolvent and had to make a move.
What he *chose* to do is close the site and run off with the Bitcoin..
Then later get his lawyer to say he found 150k in his couch. (he really did say that and it was on a USB drive)
And to be honest i might do the same in Mark's shoes..
It's tough to sit on such huge amounts of money and say you would not want to keep it LOL

Actually i am pretty sure i would do what Mark did.. i think i WOULD take the coins to be totally honest guys.

I probably would justify it in my head with a sense of self entitlement for all my years of hard work..
I would consider it my Crypto-Gold Watch and retirement bonus ROFL
How many guys would walk away with millions in Bitcoin if you knew you could get way with it ?

And Mark did.. last i seen of him was on a Coindesk News story..
That was about Mark Tweeting on the beach with a martinee posting about the beautiful sunset.
Mark from Gox rode into the sunset flush with Bitcoin and a martinee in each hand and a grin on his face !

Ever seen The Shaw Shank Redemption Guys ?

Mark is waiting for Paul on the beach RIGHT NOW !

I do not think Cryptsy would intentionally take run steal any ones money. I have said this before though people think there are grand conspiracy. At one point there were about 50 some employees to hard to keep secrets like that in a large organization. If it was happening or is it is well hidden.

[volyova]

Does anybody know what is the deal with this chinese Cryptsy clone site?? WTH I call shenanigans!

[SimkoMiner]

My latest experience with Cryptsy. I fell in trap like many others buying cheap Doge on Bittrex for 31 SAT and selling immediately for 38 on Cryptsy. It seemed to me too good to be true already from beginning but again I panicked to quickly make some bucks before Doge dumping start on Cryptsy. I really hate myself for not spending few more minutes to make deeper research and find out there is something very bad happening on Cryptsy. Red flags signaling from every corner but so far Cryptsy worked for me in the last 2 years somehow so I blindly trusted there shouldn't be any problem with such basic thing as withdrawal if sending coins to Exchange works fine. Of course after selling Doge all my BTC withdrawals got stuck indefinitely, I made three wd requests and after couple of hours of waiting I filled a support ticket. They told me they have technical problem with withdrawals, what I believe is just a generic bullshit answer for everybody. It seems like large amount of btc was stolen from cryptsy and they try to hide it. So they lure noobs to their trap who sell Doge for BTC and then that BTC is used by Cryptsy to pay out others (probably those who shout the most or want to sue them) and only small sums on a random basis. I believe now it operates in pure Ponzi mode. They proposed another bullshit solution to cancel my BTC wd requests and make them smaller. I tried just 0.1 BTC and still didn't work. So the only way was to request again cancelling BTC WD request, buy DOGE for 38-39 SAT, send them from Cryptsy to Bittrex or Poloniex and sell for 30-31 SAT. Doge withdrawals work fine. Maybe also using other alts to withdraw your money could work but as I read many people discussed that some alts work, some other don't so I used the same way to get out as I got in via Doge. So all the profit I made immediately vanished and I also lost 10%. But it's better to have 90% of my coins than loose them all. I got a good lesson to not believe ANYBODY in crypto, NEVER EVER. doesn't matter if it's an old widely used exchange, all of them can end up like Mt.Gox or Mintpal. I got burned already couple of times and I haven't learned probably enough, crypto is still infected with scams of any kind. So this way I just want to warn everybody not to fall in the same trap and if you already felt in it, you know what is your way to get out and do it immediately. This seems to be the real end of Cryptsy, just matter of time.

[Gleb Gamow]

Bitjohn i am happy you came by to talk to us but i was hoping for a far less evasive answer

I am a man of context though so i can't envision you coming here to bad mouth Cryptsy all things considered.
But one could take what you said with a hint of sorts almost.
BitJohn YOU speak in riddles aahhaha

I wouldn't tell my friends / family to get into Altcoin stuff either.
I had them ask looong ago and i basically said just "Google it" LOL

Well the topic ?
I don't see much point in prying for an answer i know i will not get.. BUT !
I had an interesting thought just now (for you BitJohn)

BitJohn have you entertained the possibility your former employer *may" go full Gox on us ?
Because i think the other guys (staff) seem to think that is outside the realm of possibility.
Like have you thought it *could happen and how you would handle it ?
If he (BigVern) did i bet it would ramp up heat on you as being a long time Cryptsy employee.
So have you considered how you would react if that occurred ?
Maybe you already have and already know and already thought of that and we're seeing it now ?

I have said i never thought Mark from MTgox planned on screwing anyone around.
I firmly believe he painted himself into a corner and was eventually partially insolvent and had to make a move.
What he *chose* to do is close the site and run off with the Bitcoin..
Then later get his lawyer to say he found 150k in his couch. (he really did say that and it was on a USB drive)
And to be honest i might do the same in Mark's shoes..
It's tough to sit on such huge amounts of money and say you would not want to keep it LOL

Actually i am pretty sure i would do what Mark did.. i think i WOULD take the coins to be totally honest guys.

I probably would justify it in my head with a sense of self entitlement for all my years of hard work..
I would consider it my Crypto-Gold Watch and retirement bonus ROFL
How many guys would walk away with millions in Bitcoin if you knew you could get way with it ?

And Mark did.. last i seen of him was on a Coindesk News story..
That was about Mark Tweeting on the beach with a martinee posting about the beautiful sunset.
Mark from Gox rode into the sunset flush with Bitcoin and a martinee in each hand and a grin on his face !

Ever seen The Shaw Shank Redemption Guys ?

Mark is waiting for Paul on the beach RIGHT NOW !

I do not think Cryptsy would intentionally take run steal any ones money. I have said this before though people think there are grand conspiracy. At one point there were about 50 some employees to hard to keep secrets like that in a large organization. If it was happening or is it is well hidden.

True that! I honestly recall a myriad of Mt Gox employees coming to this forum espousing the nefarious activities going on there months prior to its demise.

[Spoetnik]

@SimkoMiner
I don't recall seeing your name before but i have 1 thing to say to you right away..
I AM SORRY FOR YOUR PROBLEMS

I mean it i hate hearing about that sort of thing happening to people ..it sucks and i have been there too with Cryptsy.
Pay no mind to Cryptsy staff they hear so much complaining they prob don't care anymore..
Don't feel bad they don't apologize to anymore.. they just post comments on news sites calling you liars !

I also think it was good you spoke up.. it's easy to just say nothing.
Your comment may be the last straw to warn someone out there and maybe save that person from losing coins.

@Gleg Gamow
Excellent point !

@BitJohn it's the middle of December now man..
You put the MOTD on IRC about withdrawal problems on OCT 17th
and since then we have heard a myriad of excuses from Cryptsy.. mostly that it's all FUD by trolls.
Deliberate or not.. a "technical problem" exists (yes that was a reference to the SimkoMiner's support response)
Maybe if Horus is concerned about running around to News websites calling us all Trolls FUD'ing
then you guys can tell your users that in the support tickets when they ask where their coins went.

People look at what happened with Gox..
I heard way back they had a custom back end that was not working properly which contributed to the downfall.
Either BigVern is stealing coins or THAT is what is happening.. there is no other excuse left.
They already used them all.. such as DDOS ROFL

It's been two months of crying FUD !

[volyova]

@SimkoMiner
I don't recall seeing your name before but i have 1 thing to say to you right away..
I AM SORRY FOR YOUR PROBLEMS

I mean it i hate hearing about that sort of thing happening to people ..it sucks and i have been there too with Cryptsy.
Pay no mind to Cryptsy staff they hear so much complaining they prob don't care anymore..
Don't feel bad they don't apologize to anymore.. they just post comments on news sites calling you liars !

I also think it was good you spoke up.. it's easy to just say nothing.
Your comment may be the last straw to warn someone out there and maybe save that person from losing coins.

@Gleg Gamow
Excellent point !

@BitJohn it's the middle of December now man..
You put the MOTD on IRC about withdrawal problems on OCT 17th
and since then we have heard a myriad of excuses from Cryptsy.. mostly that it's all FUD by trolls.
Deliberate or not.. a "technical problem" exists (yes that was a reference to the SimkoMiner's support response)
Maybe if Horus is concerned about running around to News websites calling us all Trolls FUD'ing
then you guys can tell your users that in the support tickets when they ask where their coins went.

People look at what happened with Gox..
I heard way back they had a custom back end that was not working properly which contributed to the downfall.
Either BigVern is stealing coins or THAT is what is happening.. there is not other excuse left.
They already used them all.. such as DDOS ROFL

It's been two months of crying FUD !

Wot about that Chinese Cryptsy clone? What think you?