CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[Gleb Gamow]

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.

Dude, it's obvious that you're not verse in Paul Vernon's Army record where he handled security issues for 3-, 4- and 5-Star Generals, and ...

http://paulvernoncryptsy.tumblr.com/

Paul Vernon Cryptsy

Paul Vernon of Cryptsy is known to colleagues as a savvy businessman whose technical and business skills have made him a valuable asset to Cryptsy. He is currently serving as the company's Chief Executive Officer. Cryptsy is an Internet startup operated by Project Investors, In. that focuses on the exchange of crypto-currency, also known as bitcoin. Paul Vernon says Cryptsy currently services more than two hundred kinds of crypto-currency.

The Job and Duties of a CEO

The Chief Executive Officer of any business, whether they are large or small, is the person that sits at the top. They are the head chair at a conference table so to speak. There are certain jobs and duties that only the CEO can do and they carry a lot of the responsibility of the company on their backs, especially if the company they are CEO for, is one that they started on their own. The CEO has the responsibility of making sure the business is still alive the next year, and the year after that, and for as long as the company can stay alive.

It requires a high degree of calculated thinking to do the job right. If they have a strong background in business and have experience heading another company, this will reflect nicely on them. But a background in business is not always necessary. Some CEOs never worked in business before, but it is all about having the right skills to make things happen when they should.  Paul Vernon is a CEO of his company, Cryptsy, and he had no prior experience in the business. He is a veteran of the Army where he was an intelligence analyst. But here he honed the skills he needs to run his technology-heavy business.


In most cases, there is no standardized list of responsibilities carried out by a CEO. Excluding the responsibility of the future of a company, common duties of a CEO include; supporting operations and administration of the Board, and advising and informing said members. A CEO is often the interface between the Board and the company staff.  Another function that CEOs often do is one of community and public relations, consistently presenting the organization with a strong and positive image to key stakeholders. They are the ones who make public announcements and other things to the press and the general public when something big happens. Paul Vernon Cryptsy is a huge advocate for getting involved with the community, which makes him a great CEO.

A great CEO who would've banned the entire community if given enough time. HAHAHA

[1715208214]

1715208214

[Gleb Gamow]

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

Requested withdraws consisting of over six million dollars that equals what hasn't yet been reported to the police as being stolen.

Wait till you guys learnt who BitJohn is from the forthcoming leaked emails. HAHAHA You're gonna love that.

[Gleb Gamow]

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.

Did I mention the myriad Marshall Long mentions in the forthcoming leaked emails? Prob not, but is am now. HAHAHA

Hey, guys, I have a serious question: Should any leaked emails be turned over to the police or should the community have a look at them first? I mean, we're playin' by Paul's rules, aren't we?

I mean no crime will be committed by withholding evidence since a crime wasn't reported, allowing the community to handle everything. Just wanna make sure.

[BenTuras]

Figuring out who owns the btc addresses that received the multiple 1000BTC transactions could lay in the small amounts that are also received on those addresses.
These small amounts look like advertisement amounts, so somehow someone found these addresses somewhere.
Questions is where were they found...

[shitalsmenon]

Only thing now is to :- do remember all the Cryptsy team , Cryptsy fanboyz and devs that were along/supporting in this show all the time together for future such events be caught quickly ! As its the same people making making GOX show repeat again and again ! Specially the fanboyz who where telling i totally trust Cryptsy and they never go poof ! Similar to Garza fanboys ! Without this fanboyz, truth would have came out pretty soon ! Blind dumb herd mentality followers !

[kelsey]

Sorry   if the latest blog release shows all previous excuses to be basically a lie; then why the hell do so many just instantly believe the latest excuse  

[Gleb Gamow]

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 ?

Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting.   At one time we had a open communication with Secret Service Agent Shaun Bridges on an unrelated matter, but I think we all know what happened with him – so he was no longer somebody we could report this to.    Recently I attempted to contact the Miami FBI office to report this, but they instead directed me to report it on the I3C website.  I’ve not heard anything from them.

FBI: FBI, how may we help you?
PV: Yes, 6 1/2 million dollars was stolen from my company.
FBI: We're sorry to hear that. Please contact support on the I3C website. And, don't contact us again or you'll be banned.
PV: But...
FBI: PV has been banned for one year.

[bones261]

Sorry   if the latest blog release shows all previous excuses to be basically a lie; then why the hell do so many just instantly believe the latest excuse  

I don't believe it, entirely. I believe that the coins are all stored safely in paper wallets stuffed under Paul Vernon's pillow.

[BenTuras]

Figuring out who owns the btc addresses that received the multiple 1000BTC transactions could lay in the small amounts that are also received on those addresses.
These small amounts look like advertisement amounts, so somehow someone found these addresses somewhere.
Questions is where were they found...

For example, who owns 1FactomGnNFTsTVx8jiGjcLKDpyL65GDsH - looks like a "manufactured" address ".Factom...". This is one of the addresses that transfers 0.0005BTC.

[Spoetnik]

Sorry   if the latest blog release shows all previous excuses to be basically a lie; then why the hell do so many just instantly believe the latest excuse  

yup including BV's owns comments on this topic !
read his post history..
https://bitcointalk.org/index.php?action=profile;u=93918
you guys think he doesn't know about this topic ?

And..
Freenode network on iRC #Cryptsy channel is getting popular guys ..come join us !
Web chat link in my SIG
AND.. SuperTroll Box link in my SIG to watch Cryptsy's Troll Box

[GoldSeal]

You know how many times I was banned for sparring with those cryptsy clowns in chat with them declaring: "We have never been hacked."


OMG. BitJohn and JShock were lying the entire time. They were hacked a year and a half ago. Absolutely amazing.



I wear this notification proudly. It's a badge of honor.

[Gleb Gamow]

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

That's what his site relaid on Dec 5, 2013, forward, while taking folks' moneys. Boy, is this lyin' piece of shit cocksucker in a lot of trouble. HAHAHA: http://web.archive.org/web/20131205074534/https://www.cryptsy.com/pages/security

[Gleb Gamow]

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...

Wait till you see the email leaks and learnt who's possibly behind that. HAHAHA

[jesselivermore]

[Gleb Gamow]

Bitcoin tanking like a motherfucker guys !

https://bitcoinwisdom.com/markets/btce/btcusd

News related ?

If it goes any further down, Leroy Fodor will be able to report that 126 BTC have been deposited on StakeMiners with 135 BTC worth of holdings of PoS altcoins. Average chart forthcoming. HAHAHA

[Gleb Gamow]

Did I mention that I'm a bit upset?

No, but tell us how you really feel.

[iGotSpots]

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...

Wait till you see the email leaks and learnt who's possibly behind that. HAHAHA

Talk is boring. Do it or don't

[BenTuras]

Figuring out who owns the btc addresses that received the multiple 1000BTC transactions could lay in the small amounts that are also received on those addresses.
These small amounts look like advertisement amounts, so somehow someone found these addresses somewhere.
Questions is where were they found...

For example, who owns 1FactomGnNFTsTVx8jiGjcLKDpyL65GDsH - looks like a "manufactured" address ".Factom...". This is one of the addresses that transfers 0.0005BTC.

And how about 1KBy6MvcBb2qQRS5fQT92o2c5Dq2W6ygx4, that received 1325BTC on 2014-07-29. Two days later it received 0.00000001BTC from 1NktQfw949Sv7acr3vj1WS98PPPtNBzMRb, which got funded 0.05BTC in transaction https://www.walletexplorer.com/txid/3069a8c913c506e068743c71225ba9554e20883a9ac86b0543d93de195042d50 received from Localbitcoins.com! So who is behind this transaction?

[Gleb Gamow]

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.

Seriously, what part of IT DID HAPPEN didn't you understand?

At one time we had a open communication with Secret Service Agent Shaun Bridges on an unrelated matter, but I think we all know what happened with him – so he was no longer somebody we could report this to.

Timeline:

July 29, 2014: $6.5M+ USD worth of BTC stolen from Cryptsy. (Don't get ahead of me!)

March 30, 2015: https://darknetmarkets.org/2-federal-agents-in-silk-road-case-face-fraud-charges/

Two former federal agents are expected to be arrested on Monday on charges of stealing money while working undercover on an investigation into Silk Road, the once-thriving black market website for drug dealing, a document shows.

The former agents are Carl Mark Force IV, who worked for the Drug Enforcement Administration, and Shaun Bridges, who worked for the Secret Service.

Paul Vernon: I didn't know where to turn or who to call when the over six million dollars was stolen because I knew nine months later Shaun Bridges was going to be arrested for ... well, I think we all know what happened with him.

Here's my take: Leroy Fodor is a 100 times more betterer thief than Paul Vernon will even be.

[Riddikulo]

I told you so boys, so time ago that Craptsy it´s scam.