CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[Pmalek]

So reason for implementing Tiers was to slowdown and restrict wds if they can... Was implementation before or after coinfire article?

[RoyalSands]

So basically Mullick approved the Lucky7Coin wallet that was infected.  That was his job after all.

Is there an echo in here?

[WhaleOrNot]

Considering the chat box is gone.. if any one wants to keep in touch: @BTCFailWhale On twitter Polo on ocasion

God Speed yall.. seriously.

[o0o0]

so let me see if I get it...


They got hacked over a year ago and didn't bother to report it? The theft of customers money and they said nothing???

they continued to take in new money and let little bits trickle out... I assume that Vern got paid...

How is this not a ponzi scam?


The feds will be all over this in a matter of days, and will tear the place apart to look for evidence if there is any left to find.
Do you think the admins knew what was happening? If there is any email evidence anywhere that they knew, are they going to jail with Vern?
 

Probably... karpeles headed that way eventually. I don't think its not my fault the bad hacker did it works in court if you don't declare the hacks straight away.

[ph4nt0m]

This BigVern's story is an utter bullshit.

1. How come he could run BTC, LTC and some unknown shitcoin wallets within the same physical machine AND virtual machine? I don't do this even on my desktop!

2. 13,000 BTC and 300,000 LTC in HOT wallets? BTC was about $580 and LTC $7.5 at the alleged theft time. That's a grand total of nearly $10 million! Again, in hot wallets? Are you fucking kidding me?

3. All wallets on exchange MUST be encrypted with their keys stored elsewhere in top security. Even if a wallet server is compromised, nothing can be sent out without knowledge of these keys. That's a no-brainer.

[RoyalSands]

This BigVern's story is an utter bullshit.

1. How come he could run BTC, LTC and some unknown shitcoin wallets within the same physical machine AND virtual machine? I don't do this even on my desktop!

2. 13,000 BTC and 300,000 LTC in HOT wallets? BTC was about $580 and LTC $7.5 at the alleged theft time. That's a grand total of nearly $10 million! Again, in hot wallets? Are you fucking kidding me?

3. All wallets on exchange MUST be encrypted with their keys stored elsewhere in top security. Even if a wallet server is compromised, nothing can be sent out without knowledge of these keys. That's a no-brainer.

Patrick?

[spamsucks]

Here were the options given:

Here are our options:
1.   We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements.
-   or –
2.   Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.
-   or –
3.   If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.
I’m obviously open to any other ideas people may have on this.


I will take option 2. I will buy cryptsy as is just the way it sits for the btc in my account. I will sort out the rest later.

Vern, please confirm via email...



Awww nevermind, I still have teh .3 in my account and thats way too much

[Gleb Gamow]

Is it just me, or has the Scam section of this forum gotten extremely active since Cryptsy went down?

[o0o0]

This BigVern's story is an utter bullshit.

1. How come he could run BTC, LTC and some unknown shitcoin wallets within the same physical machine AND virtual machine? I don't do this even on my desktop!

2. 13,000 BTC and 300,000 LTC in HOT wallets? BTC was about $580 and LTC $7.5 at the alleged theft time. That's a grand total of nearly $10 million! Again, in hot wallets? Are you fucking kidding me?

3. All wallets on exchange MUST be encrypted with their keys stored elsewhere in top security. Even if a wallet server is compromised, nothing can be sent out without knowledge of these keys. That's a no-brainer.

I think the lost funds were cold storage which begs the question... manual moving of coins was needed to refill.... so how did that hack happen if its offline?

Starts to make sense now too... the coinfire stories resulted in withdrawals... the change of fee structure was there to combat that.. didn't work.

Paybans.. those were in to generate more money to cryptsy as portion was taken.

Garza prime controller and volumes... more cash to repay hack



Everything fits the grasping at straws desperation. Makes Paul Vernon a slime ball that hid things. Would you trust him in the future if this was fixed? He's done it once likely to lie again. Cryptsy will close withdrawals all soon. Feds come in... Lots of shitstorming. Crypto doesn't need this crap.

[Spoetnik]

BV claimed he did not know who to contact ?
BULLSHIT !

They already said they seize accounts and report people to the Fed's
Then tel them some BS excuse like wallet problems..

So Vern saying he had no idea who to contact is bullshit !

Further more he could have contacted the people he had ALREADY been working with
or called the FBI etc and they would NOT HAVE to make any public announcement.
If an FBI investigation was started why would BV assume he had to tell people ?

VERY poor excuse !

I want to say a lot because all of his story reeks.. but i will summarize..

I think he seen the divorce coming then funneled out 6 million which matches the previously mentioned found coins.
All that to hide the funds from divorce proceedings etc

He probably already had that 6 mill wallet going anyway for years..

I call bullshit on this story of his !

First thing i want to know is does that old 6 million dollar wallet we heard about
is that the same one BV mentioned in his Blog post ?

[RoyalSands]

I am... upset

[GoldSeal]

This is over. Cryptsy just self-destructed. http://blog.cryptsy.com/

[RoyalSands]

This is over. Cryptsy just self-destructed. http://blog.cryptsy.com/

Yes, the cat is out of the bag.

[suchmoon]

I think the lost funds were cold storage which begs the question... manual moving of coins was needed to refill.... so how did that hack happen if its offline?

Doesn't look like cold storage. Most funds gone in one transaction, not a slow bleed via refills:

https://www.walletexplorer.com/txid/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf


Edited 2020-11-28 to fix a broken image

[spamsucks]

I have another question... the phishing email that came out was being talked about yesterday here: https://bitcointalk.org/index.php?topic=1325850.new#new

In it you see this:

Hi, Cryptsy ceases its activities in the wake of the theft of most of Bitcoins from the COLD storage.

You can start a refund procedure at the link:
http://removed-website.xxx/

Please accept our apologies.


Funny enough that whoever sent the e-mail might have had some idea of what was happening...

[Spoetnik]

New update!!
http://blog.cryptsy.com/post/137323646202/annoucement

Show of hands ? How many people are genuinely surprised ?

About time they came clean.

I am a bit surprised how utterly idiotic this is. Poor security practices, trying to conceal huge loss, letting the site bomb completely before coming clean... but yeah, a hack was something most predicted.

Ya like he takes a pre-compiled LuckCoin wallet and runs it on his machine with ties to millions in customer funds ?
Further more i already heard waaaay back that they have to compile the wallets themselves so that has to be a lie !

[GoldSeal]

I better withdraw the 2 CSC and 17 sprouts I have left in there. Wonder if it will go through.

[RoyalSands]

New update!!
http://blog.cryptsy.com/post/137323646202/annoucement

Show of hands ? How many people are genuinely surprised ?

About time they came clean.

I am a bit surprised how utterly idiotic this is. Poor security practices, trying to conceal huge loss, letting the site bomb completely before coming clean... but yeah, a hack was something most predicted.

Ya like he takes a pre-compiled LuckCoin wallet and runs it on his machine with ties to millions in customer funds ?
Further more i already heard waaaay back that they have to compile the wallets themselves so that has to be a lie !

This is how it worked.  You send a github link to Mullick and he compiles it for their server.

[o0o0]

I think the lost funds were cold storage which begs the question... manual moving of coins was needed to refill.... so how did that hack happen if its offline?

Doesn't look like cold storage. Most funds gone in one transaction, not a slow bleed via refills:

https://www.walletexplorer.com/txid/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf

Chat removed from site... o noes.... lets hide it more

But you can still read from

http://www.nickelbot.com/supertrollbox.php

Just don't refresh your cryptsy page or navigate elsewhere or you lose chat.. I confirmed this.

[presstab]

New update!!
http://blog.cryptsy.com/post/137323646202/annoucement

Show of hands ? How many people are genuinely surprised ?

About time they came clean.

I am a bit surprised how utterly idiotic this is. Poor security practices, trying to conceal huge loss, letting the site bomb completely before coming clean... but yeah, a hack was something most predicted.

Ya like he takes a pre-compiled LuckCoin wallet and runs it on his machine with ties to millions in customer funds ?
Further more i already heard waaaay back that they have to compile the wallets themselves so that has to be a lie !

The code is in the source... doesnt matter who compiles it, so long as its left in there https://github.com/alerj78/lucky7coin/issues/1