CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[bones261]

https://www.youtube.com/watch?v=EfRtqgdN6Co

I say Paul Vernon did it.

[matt4054]

dooglus found it first.

grue found it first. And it was almost a year ago.


Flabbergasting.

https://github.com/alerj78/lucky7coin/issues/1

@next exchange wannabes: sandbox your wallets!

[Gleb Gamow]

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.

[ofeefee]

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.

Wow, no word for all this time, worst news!  I just don't get why not be truthful in all, and when it happened.

[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 !

No real exchange runs precompiled wallets. First, they use Linux for backends. Windows is plain insecure. Second, to fire up a wallet released by an unknown dev without a code review? Never going to happen.

If Mullick reviewed the code on every wallet then he was one fast motherfucker.

Also, I know for a fact that he approved at least one wallet for a coin that had a hidden premine.  Someone else figured it out after it had been live for quite some time.

app's like "Beyond Compare" are Awesome !

[Blakesss]

How many coins were only traded on Cryptsy and are therefore dead or more or less dead?

[Spoetnik]

@BigVern

POST
THE
TROJAN
WALLET

I think it is on github

edit:  see post above this one

a precompiled wallet with a confirmed Trojan ?

[WhaleOrNot]

Some pretty good questions being asked, ie. " What about non-BTC & Alts that people had balances of and want, they wern't 'stollen'

[cryptomann420]

Some pretty good questions being asked, ie. " What about non-BTC & Alts that people had balances of and want, they wern't 'stolen'

Dont you get it all those wallets that were in maintenance were empty from selling off to keep withdrawals going!!!

[WhaleOrNot]

Some pretty good questions being asked, ie. " What about non-BTC & Alts that people had balances of and want, they wern't 'stolen'

Dont you get it all those wallets that were in maintenance were empty from selling off to keep withdrawals going!!!

Could very well be. Im sure the class action will reveal that shit in due time.

[favdesu]

typical claim "We've been hacked, Confire's Fault" - this is GAW 2.0 http://www.coindesk.com/digital-currency-exchange/

[GoldSeal]

Hey Vern,
No worries on reporting it to law enforcement. There's a lot of people out there that will take care of that for you now. Not reporting those stolen coins to the authorities and having admitted everything now, means that you are guilty of obstruction of justice at a minimum.

So I'll give you another fucking option:


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.
-   or –
4.   We notify law enforcement and they seize you and your wife's personal assets in connection with the criminal enterprise that you have been runningfor the past year. Then you go to jail. In addition, expect a deluge of civil suits.

I'm drafting a complaint to the Florida AG right now.

[Gleb Gamow]

https://blockchain.info/tx/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf



I guess since Cryptsy is registered with the SEC, Paul Vernon knows that the SEC could care less if he reported over six and half million dollars stolen to the police or not since Paul is allowing crazies on the Internet to conduct their own investigation.

If Paul Vernon didn't do it, then I'm leaning heavily toward the following person stealing Cryptsy's moneys:



Peggy Haglock (far right): https://www.facebook.com/peggy.haglock

She was quiet throughout the ordeal, just recently coming onto the cryptocurrency scene to vouch for Leroy Fodor's StakeMiners. Don't let her age and innocent looks fool you. She most likely did it.

<Yes, I'm several pages behind, looking forward to catching up.>

[Spoetnik]

i find it cute Jagropolite is STILL on their chat kissing ass. (see my SIG link SuperLurk)

And when does cyberpinoy & Terrik pop up saying.. I Told You So ?

Seems staff crying FUD by Trolls with an agenda all over the web were uhhh lying

Guess what ?

..

I TOLD YOU SO

[iCEBREAKER]

for missing BTC - cryptsy produced an explanation

but why all other altcoins are blocked?

very good questions . We need more details about the alts holdings.

edit : ahh , he said

About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies.

plz define "a couple other"  

One of the "couple other smaller cryptocurrencies" is DASH.

450,000+ DASH, enough to control its 'decentralized governance' forever, moved four hours after the BTC and LTC.

The Evan's Gate cultists on on suicide watch, as they realize what will happen when that many get dumped into a very (thanks to Crypty's absence) shallow pool of bids.

signs point to at least some Dash being stolen...

Withdrawal issues are being caused by lack of funds in Craptsy wallets... which means, someone stole them...

Any idea how much Dash is 'stuck' at Craptsy? (this is how much was stolen)

I see a block, 4 hours(?) after the 13,000 BTC was stolen from Craptsy, which shows 456,501 Dash being moved (stolen?):
https://chainz.cryptoid.info/dash/block.dws?110242.htm

Any chance Craptsy would confirm/deny that ~450k Dash was stolen?

oh shit 450,000 DASH if true its worse than the Mintpal theft

Don't feel sorry for them, they deserve it after

1. white knighting for Cryptsy while many others were trying to sound the alarm and warn people

2. attacking Poloniex, the exchange that disclosed a theft but earned back the money and repaid everyone

3. refusing to stop putting their trust into individuals like BigVern and Evan Daftfield.

Getting burned to a crisp is the only way those people will learn.

[GoldSeal]

Some pretty good questions being asked, ie. " What about non-BTC & Alts that people had balances of and want, they wern't 'stollen'

You got to sue them. Call Dan & David Silver at Silver Law. They are the same lawyers with the class action.

However, this happened with MTGox and a guy sued for his property back. The court denied it because they made a ruling that once deposited that it was impossible to determine which coins were specifically his property. You are likely to see the same thing happen here. The court will always support a real bankruptcy process instead of individuals bringing lawsuits to get their coins at the expense of other creditors.

So if you had coins in cryptsy, you just became a creditor. You are like to be paid out in USD maybe a couple years from now.

If anyone wants to sell ownership of the BTC balances that you have in Cryptsy, please PM me for an offer. I am still willing to purchase trapped BTC at a reduced rate approximately, $10 USD per BTC.

[CartmanSPC]

This exploit was posted here by grue on January 25th, 2015:
https://bitcointalk.org/index.php?topic=935898.0

dooglus created the GitHub issue a couple months later on March 8th, 2015.
https://github.com/alerj78/lucky7coin/issues/1

Who would have thought cryptsy was running multiple wallets on the same server....not totally surprised to be honest. Their cold wallet storage claims were false...again, not surprised.

Edit:
If the story is even true. I don't think anyone involved has any credibility left. Absolute and complete gross negligence.

[WhaleOrNot]

Some pretty good questions being asked, ie. " What about non-BTC & Alts that people had balances of and want, they wern't 'stollen'

You got to sue them. Call Dan & David Silver at Silver Law. They are the same lawyers with the class action.

However, this happened with MTGox and a guy sued for his property back. The court denied it because they made a ruling that once deposited that it was impossible to determine which coins were specifically his property. You are likely to see the same thing happen here. The court will always support a real bankruptcy process instead of individuals bringing lawsuits to get their coins at the expense of other creditors.

So if you had coins in cryptsy, you just became a creditor. You are like to be paid out in USD maybe a couple years from now.

If anyone wants to sell ownership of the BTC balances that you have in Cryptsy, please PM me for an offer. I am still willing to purchase trapped BTC at a reduced rate approximately, $10 USD per BTC.

Yep, I had some there, stuck in maint (ALTS)..I been stuck for ages..nothin worthy of complaining about tho, considering ..chances are they dident exist if my hunch is right, and were just #'s on a ledger. Ahh well..back to the BTC charts...EARTH CORE!

[GoldSeal]

Cryptsy should release a list of all wallet addresses and balances under their control. That way, we can assess the damage.

[sellbuy]

Cryptsy should release a list of all wallet addresses and balances under their control. That way, we can assess the damage.

i'm agree with you. But how to send this message to cryptsy?