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Author Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action  (Read 1006484 times)
CoinFriend
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January 02, 2016, 10:21:24 PM
 #3241

Just a example of what i've found in the cryptsy chat today.
BtW, on a earlier version for cryptsy the chat was visible for everyone who is not registered or logged in on the site.
To read the chat today, people must open a account. New users who check out the site are not aware about the current problems!
Do they hide their problems this way, especially for new users? Because the exchange rates (which are manipulated in my opinion, due to the current withdrawal problems) promise a lot of profitable arbitrage opportunities and seems very interesting for Trader.



A conclusion of my thoughts:
It seems that guy in blue with the crown (Admin) can't provide exact information about the problems (since months).
But he tells the users that they can try to upgrade to Tier 2, to withdraw coins.
In other words, he ask in the name of the company to provide personal data! But does he provide a proof that this works better?

Tier 2 needs:
- Upload Government Issued Photo ID
- Upload Government Issued ID + Face & Paper
- Upload Copy of A Utility Bill
The main idea behind tier 2 is to make fiat transactions available!
Tier 1 does not allow fiat transactions and is for bigger limits of montly cropto transactions, than tier 0. Tier 0 need no data, Tier1 real name and address.

So why is he asking for additional data if someone don't want trade fiat? In other words it means tell us more about you, but we can't promise that you get your coins faster. Lol, maybe next week he recommends, call your fist child cryptsy and upload the birth certificate, that could help to get your withdrawal processed.

BtW, how did that guy got a crown? Seems he does not know what a wallet address is... Wallet addresses are visable to the public, like license plate on a car. Everyone can see it and recognize the car, even without having the keys to access to it. (Or does he mean the keys to the secret that shows what's really going on?? )

Fianlly it seems to me that cryptsy acts not fair and honest. They play with the fear of users.


and according to the thoughts of my last post...
https://bitcointalk.org/index.php?topic=1173703.msg13420253#msg13420253
Isn't it obvious?
They changed the fee structure and created problems that many people want withdraw funds.
Somehow i think this mass panic, that cryptsy could end like MtGox, creates a lot of profits on fees. Much bigger at the moment, compared with a normal operation, where users withdraw only sometimes. At the moment many people try to move their coins, in fear of a total loss.
Further, greedy people try to arbitrage, due to the pumped altcoin prices. They search for routes to let coins circulate. And cryptsy takes now 0.5% fee on those trades! (The double of what they took before they made the changes)

If i am right with all my guessing about this all. Then cryptsy did a clever move maybe. This situation seems calculated but it is not fair, not honest and not very much appreciated.
And i understand why they don't announce the problems to the public. Also i understand in the same way what causes this lack of information in general.

Think i should stop now. It's a sad story that makes me angry.
Maybe i finish with a hand full of question, because i see that cryptsy staff writes here sometimes. Maybe someone likes to respond.

Do you guy recover additional withdrawal/network fees in the case that a user was told to process very tiny transactions?
Just imagine that i buy a bunch of DOGE for like 50 BTC on other exchanges to dump them at cryptsy... let's say i get a profit of 10 % due to this trade. Then i create 550 transactions of 0.1 BTC to send my BTC back to my wallet, because a guy in the chat said it could work.
The sum of the network withdraw fee will be 0.55 BTC, but it should be 0.001 BTC according the fee structure on a single Tx.
A additional fee of 0.5% is deducted from the whole amount, because cryptsy charges a trading fees on withdrawals. It's okay in my opinion. But it should be a bit less or 0.0% instead as long as the service does not work perfect and withdrawals are processed delayed. Correct?
Or is it okay to charge money for a not working service?

Why not halting markets and put coins into maintenance when you guys expect problems with withdrawals? Especially when the issues are on your end and not made by the coin/network?
It seems more efficient to me, instead of answering hundreds or thousands of support tickets and trolling the users in the chat box.

- https://www.cryptopia.co.nz  - your one stop crypto shop  -
Exchange, Mineshaft, Marketplace and much more. Check it out Smiley
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January 02, 2016, 10:26:10 PM
 #3242

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

does josh garza run his twitter now? thats some serious coining the world spelling.
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January 02, 2016, 11:27:55 PM
 #3243

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

does josh garza run his twitter now? thats some serious coining the world spelling.

Yes, after ~9 months from the original complaint, you would think this would have been enough time to articulate an appropriate response; let alone check for misspelling.

The worser one speels, the more powder they give themselfs, e.g., Leroy Fodor earning his B.B.A. from Ohio University in Athens, OH, minering in crætive writting, then becaming a bitcoin minor in 2009. Follow the link in my sig to see how the honorable Leroy Fodor served me today on his locked scam thread about my scammy ass. HAHAHA
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January 03, 2016, 12:17:06 AM
 #3244

That reply is twitterish but not from Twitter.

He had no 140 character limit.

"This persons accusations are not only inaccurrate, but they are discusting." was his best reply to this:

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

 Grin
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January 03, 2016, 01:02:29 AM
 #3245

You CAN NOT HAVE MA COOKIES !!!!!!!!!!

but hey in case you missed this oldie but a goodie Wink

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

Feel free to post a review ladies & gentleman LOL

Quote
Cryptsy is an online exchange operated by Paul Vernon from Delray Breach, FL.

After being discharged from the US Army for sexual activity involving a minor, Paul Vernon set out to create an online exchange for traders of currency. Paul served for over 7 years in the US Army as an Intelligence Analyst holding a "Top Secret" Military Security Clearance.

Cryptsy is the worst online exchange of it's kind. Since it's inception in 2013 it has continued to be one of the most poorly operated sites in existence. What does his CFO, Stacy Taylor, have to say about all of this?

Some of the issues include:

- 503 server errors continue to pop up almost daily, rendering the entire site inoperable. It's not uncommon to read "Cryptsy is down again" in chats.

- Funds go missing from accounts, sometimes appearing in other people's accounts where they are withdrawn. One customer was reportedly able to withdraw 3 Bitcoins (approx. $2400 US) that he had never deposited in the first place. Also double spending is known to occur whereby you can spend twice the amount of coins you have, leaving you with a negative balance.

- Trades occur at a slow speed after being placed, often to the point where you lose money in the process.

- Cancelling a trade results in your funds being returned sometimes 30 minutes later. Should you invest your entire portfolio into a new fund and cancel it, you're broke for half an hour unable to take advantage of any other trades until such time Cryptsy decides to return your money back to your account.

- Horrible customer service. Trouble tickets are backlogged up to 4 weeks. Customers on Bitcointalk have been known to wait 3 weeks before any action occurs and even then it takes posting to an external forum sometimes to force any action.

- During Christmas 2013 there were approximately 230 complaints posted on Cryptsy's support forum from customers demanding their money be returned to their wallets. It was so problematic that Paul Vernon resorted to mass mailing all of his members to ask that they close their tickets if the issue was with funds, because they were working on the issue.

------------------------------------

Dear Crypsty user. This is a message in answer to many of the tickets we have been receiving over the past 48 hours regarding incorrect balances and disappearing coins.

First please let me assure you that your coins are not lost and are very safe.

For the past few days, due to an article in a few major media newspapers, we have been experiencing a major increase in new user signups, transactions and customer support issues. This influx put a tremendous amount of load on our servers slowing things down to a crawl.

To remedy this we added more servers, hired extra customer support agents, and moved the order cancellation routine out of the main trade engine so that trades will execute faster.

However the new routing was not cancelling the orders correctly since last night This morning there were a large number of unprocessed cancellations in the queue. That queue is now almost completed and 90% of cancellations have now processed your coins back to your balance.

There are still a few left to go, so if your balance is still not correct at the time of this message please give it a little more time to finish auditing.

We have corrected the issue that caused this and it should not happen again.

Please be patient as we go through our growing pains and continue to make Cryptsy the #1 coin exchange in the world.

If your balance is correct, there is no need to reply. If your balance is NOT correct, or if there is still an issue in your account.. please feel free to contact us.

------------------------------------

The issue should not happen again Paul claimed, yet it did, and does repeatedly occur. Instead of dealing one on one with customer tickets Paul chooses to mass mail people and hope that his weak excuses will suffice.

- Security errors crop up when trying to withdraw money or login. No explanation given as to why.

- Paul has a questionable interest in underage girls and has made this known during chats he had on his website, theporndatabase.com

- A search of bitcointalk and.or Reddit will result in hundreds of complaints of lost funds, missing money that was given to other users, downtime, server errors, claims of fraud and people threatening to sue to get their money back.


I bump this since i am the guy who posted it first Wink
I found it before and posted it on this topic way earlier too.. this is round 2 hahah
I didn't get much response posting it the first time 80 pages back ROFL

I bet i got more gems tucked away too.. i have 1,000 Crypto bookmarks  Cool

I also like some of the posts from CoinFriend.
We always get a chuckle out of their chat box comments.
And you are right about them hiding the chat box not long ago..
This was in the middle of these problems and there for a clear attempt to hide the truth from the public.

I can't say their ONLY reason for Tiers was to fuck over users.
They are just trying to follow US law about ID etc.
BUT, their implementation with it is suspect..
at least in the sense that it's designed to be a wall slowing down withdrawals.

FUD first & ask questions later™
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January 03, 2016, 03:10:04 AM
 #3246

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

Where's this?  Their site or twitter or here?  I'd like to see something "discusting"....  What's a cust?  Short for customer?  As in... the accusations are "discustomering"?

That was his epic professional rebuttal to this! 

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

The Twitter account is outsourced to a 3rd party, probably a twitter farm in India or China. :*)

GA-990FXA-UD5, 1x 7970L, 2x S1, AX1200i, RIVBE, 2x R290x, NEX1500, BTC: 1G9cQix8bMgh35MQ9wY3Rb9yNSSCtnoRmK, DGC: DFo9FcKYsutv9Vx5c5xUzkrt7VJdECZWTM, LTC: LaAN33aktPGaimN5ALL9kjHjuJekfmKfTh
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January 03, 2016, 03:18:31 AM
 #3247

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

Where's this?  Their site or twitter or here?  I'd like to see something "discusting"....  What's a cust?  Short for customer?  As in... the accusations are "discustomering"?

That was his epic professional rebuttal to this! 

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

The Twitter account is outsourced to a 3rd party, probably a twitter farm in India or China. :*)

I think that response was on that rip-off site not Twitter.
I just looked at the Twitter page and there is no new info..
https://twitter.com/cryptsy?lang=en

FUD first & ask questions later™
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January 03, 2016, 03:32:47 AM
 #3248

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

Where's this?  Their site or twitter or here?  I'd like to see something "discusting"....  What's a cust?  Short for customer?  As in... the accusations are "discustomering"?

That was his epic professional rebuttal to this!  

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

Not a very good article but the title lol!

"Daily Record helps snare child sex beast as reader's tip leads to arrest of Paul Vernon"

http://www.dailyrecord.co.uk/news/scottish-news/daily-record-helps-snare-child-5365362
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January 03, 2016, 03:39:36 AM
 #3249

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

Where's this?  Their site or twitter or here?  I'd like to see something "discusting"....  What's a cust?  Short for customer?  As in... the accusations are "discustomering"?

That was his epic professional rebuttal to this!  

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

Not a very good article but the title lol!

"Daily Record helps snare child sex beast as reader's tip leads to arrest of Paul Vernon"

http://www.dailyrecord.co.uk/news/scottish-news/daily-record-helps-snare-child-5365362

You do realize that's a United Kingdom article... right?  Not saying ol Paul doesn't deserve significant and exponential criticism and scrutiny but it should be at least somewhat factual...

This space not for rent...
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January 03, 2016, 03:48:02 AM
 #3250

Gotta love Big Vern's illiterate reply:

"This persons accusations are not only inaccurrate, but they are discusting."

Where's this?  Their site or twitter or here?  I'd like to see something "discusting"....  What's a cust?  Short for customer?  As in... the accusations are "discustomering"?

That was his epic professional rebuttal to this!  

http://www.ripoffreport.com/r/cryptsy/delray-beach-florida-33445/cryptsy-paul-vernon-florida-pervert-poor-service-fraud-disgusting-practices-delray-b-1117982

Not a very good article but the title lol!

"Daily Record helps snare child sex beast as reader's tip leads to arrest of Paul Vernon"

http://www.dailyrecord.co.uk/news/scottish-news/daily-record-helps-snare-child-5365362

You do realize that's a United Kingdom article... right?  Not saying ol Paul doesn't deserve significant and exponential criticism and scrutiny but it should be at least somewhat factual...

I figured the LOL! Would have given it away? It was a happy go funny joke post pertaining to unsubstantiated accusations via internet digging.

https://www.houseofnames.com/vernon-family-crest
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January 03, 2016, 04:43:31 AM
 #3251

Drone drop on J:

When the address has reached 3.5 BTC
1NH7CGq4KKgjr2muEpdVi9c66Xvwp5ZVZH

Operation J will commence:

A burning Jesus figure will be dropped with care that it does not engulf his property
B A scorned American flag made in China will be dropped
C Bags of fermented urine will be dropped upon the ventilation units upon the roof
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January 03, 2016, 06:07:23 AM
 #3252

Doge Wallet is empty too.
1 day pending.

BTC 34 days pending.
ETH not working too. Coins was removed from the balance, but I do not see them in my wallet.

http://i68.tinypic.com/1y8os2.jpg
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January 03, 2016, 07:39:01 AM
 #3253

Just a example of what i've found in the cryptsy chat today.
BtW, on a earlier version for cryptsy the chat was visible for everyone who is not registered or logged in on the site.
To read the chat today, people must open a account. New users who check out the site are not aware about the current problems!
Do they hide their problems this way, especially for new users? Because the exchange rates (which are manipulated in my opinion, due to the current withdrawal problems) promise a lot of profitable arbitrage opportunities and seems very interesting for Trader.

https://i.imgur.com/RBoL3du.png

A conclusion of my thoughts:
It seems that guy in blue with the crown (Admin) can't provide exact information about the problems (since months).
But he tells the users that they can try to upgrade to Tier 2, to withdraw coins.
In other words, he ask in the name of the company to provide personal data! But does he provide a proof that this works better?

Tier 2 needs:
- Upload Government Issued Photo ID
- Upload Government Issued ID + Face & Paper
- Upload Copy of A Utility Bill
The main idea behind tier 2 is to make fiat transactions available!
Tier 1 does not allow fiat transactions and is for bigger limits of montly cropto transactions, than tier 0. Tier 0 need no data, Tier1 real name and address.

So why is he asking for additional data if someone don't want trade fiat? In other words it means tell us more about you, but we can't promise that you get your coins faster. Lol, maybe next week he recommends, call your fist child cryptsy and upload the birth certificate, that could help to get your withdrawal processed.

BtW, how did that guy got a crown? Seems he does not know what a wallet address is... Wallet addresses are visable to the public, like license plate on a car. Everyone can see it and recognize the car, even without having the keys to access to it. (Or does he mean the keys to the secret that shows what's really going on?? )

Fianlly it seems to me that cryptsy acts not fair and honest. They play with the fear of users.


and according to the thoughts of my last post...
https://bitcointalk.org/index.php?topic=1173703.msg13420253#msg13420253
Isn't it obvious?
They changed the fee structure and created problems that many people want withdraw funds.
Somehow i think this mass panic, that cryptsy could end like MtGox, creates a lot of profits on fees. Much bigger at the moment, compared with a normal operation, where users withdraw only sometimes. At the moment many people try to move their coins, in fear of a total loss.
Further, greedy people try to arbitrage, due to the pumped altcoin prices. They search for routes to let coins circulate. And cryptsy takes now 0.5% fee on those trades! (The double of what they took before they made the changes)

If i am right with all my guessing about this all. Then cryptsy did a clever move maybe. This situation seems calculated but it is not fair, not honest and not very much appreciated.
And i understand why they don't announce the problems to the public. Also i understand in the same way what causes this lack of information in general.

Think i should stop now. It's a sad story that makes me angry.
Maybe i finish with a hand full of question, because i see that cryptsy staff writes here sometimes. Maybe someone likes to respond.

Do you guy recover additional withdrawal/network fees in the case that a user was told to process very tiny transactions?
Just imagine that i buy a bunch of DOGE for like 50 BTC on other exchanges to dump them at cryptsy... let's say i get a profit of 10 % due to this trade. Then i create 550 transactions of 0.1 BTC to send my BTC back to my wallet, because a guy in the chat said it could work.
The sum of the network withdraw fee will be 0.55 BTC, but it should be 0.001 BTC according the fee structure on a single Tx.
A additional fee of 0.5% is deducted from the whole amount, because cryptsy charges a trading fees on withdrawals. It's okay in my opinion. But it should be a bit less or 0.0% instead as long as the service does not work perfect and withdrawals are processed delayed. Correct?
Or is it okay to charge money for a not working service?

Why not halting markets and put coins into maintenance when you guys expect problems with withdrawals? Especially when the issues are on your end and not made by the coin/network?
It seems more efficient to me, instead of answering hundreds or thousands of support tickets and trolling the users in the chat box.



+1 !

They should at least stop charging a withdrawal fee on a defect withdrawing mechanism.
Also, they've been asking us to upgrade to Tier 2. Don't know why but somehow T2 customers get their (tiny) WD faster than T1.

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January 03, 2016, 09:03:20 AM
 #3254

Any cryptsy mining share holders? The mining shares have not payed out in over a month. That is all I hold on Crypt, I got all my funds out back in November. The collapse is near, Vern is MIA & as the main officer of a corporate entity no other officers have any idea what is going down. Decisions can not be made via one person, they have to vote & hold meetings according to the corporate structure.

Cue the Steve Miller band song: Steve Miller Band - Take The Money & Run [Bonnie and Clyde, classic overdub]

https://www.youtube.com/watch?v=Rt4pX6TnLJA

Regarding the TIER 2 status, I submitted my documentation a while back & my account on cryptsy is still TIER 1.
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January 03, 2016, 11:44:25 AM
 #3255

Any cryptsy mining share holders? The mining shares have not payed out in over a month. That is all I hold on Crypt, I got all my funds out back in November. The collapse is near, Vern is MIA & as the main officer of a corporate entity no other officers have any idea what is going down. Decisions can not be made via one person, they have to vote & hold meetings according to the corporate structure.

Cue the Steve Miller band song: Steve Miller Band - Take The Money & Run [Bonnie and Clyde, classic overdub]

https://www.youtube.com/watch?v=Rt4pX6TnLJA

Regarding the TIER 2 status, I submitted my documentation a while back & my account on cryptsy is still TIER 1.

They meant CRY as in the first 3 letters of CRYptsy and 2 TEARS one from each eye, instead of Tier 2.

MN Shares are fake. I thought the Bait n Switch on MN2 was bad until I realized the shares were fake. Only way to prove they are real would be Cloud Hashing to come forward and disclose they are the real hosting company. Otherwise it looks like those shares were made up out of thin air. Cryptsy paid people dividends in a total ponzi scheme and Raffled off the fake shares for their own Cryptsy Points too, 28 BitCoin worth for only 200 shares. Unless Cloud Hashing can come forward and prove it. Otherwise MN is a total scam.
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January 03, 2016, 01:25:43 PM
 #3256

Doge Wallet is empty too.
1 day pending.

BTC 34 days pending.
ETH not working too. Coins was removed from the balance, but I do not see them in my wallet.



I wd DOGE  many times....and it works...but takes about 3 hours at 1 mill. I think the more you take out the longer the wait.
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January 03, 2016, 05:03:04 PM
 #3257

3 hours is likely a 100% random amount of time..

if you guys were reading this topic you would know why.
It has to be re-explained endlessly over & over on every single page...

Since no cold wallet coins are going to the hot wallet it is a waiting game until
someone comes to Cryptsy with coins to deposit.
So the time you wait can vary severely or abruptly stop for extended periods of time.
Even basic statistical averages are useless given the system.

Further more, the concept that trying to take out a small amount is a test to see if a larger amount will work is flawed.
I have proven this endlessly and all i see is chat users on the Cryptsy Troll Box saying try it etc.

GET OUT and STAY OUT !

Or i will enjoy screaming, "I Told You So" in your ear later Wink

A huge amount of you are swooping in like greedy vultures deliberately trading there to profit off this situation..
and you are going to get burned.. that greed is going to bite you in the ass (i warned you *again*)

FUD first & ask questions later™
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January 03, 2016, 06:08:16 PM
 #3258

I think this should be adopted as Cryptsy's new theme song.  Smiley
https://www.youtube.com/watch?v=mPVpMxVn6mk
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January 03, 2016, 07:14:56 PM
 #3259

I think this should be adopted as Cryptsy's new theme song.  Smiley
https://www.youtube.com/watch?v=mPVpMxVn6mk

Or https://www.youtube.com/watch?v=QNJL6nfu__Q
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January 03, 2016, 08:32:53 PM
 #3260

So a bunch of guys were disussing this issue on chat and Admin came and blocket everyone as there were newbies asking for withdrawals.

I am banned from chat few hours now





.
.1xBit.com..TICKET ..RUSH...
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BET ON
WORLD CUP &
COLLECT TICKETS!
|.
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..TAKE PART..
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