CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[not.you]

I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.

It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?

[1714992795]

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[1714992795]

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[1714992795]

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[fartbags]

Are any coins available to withdraw on cryptsy?

[MemberCount+1]

Are any coins available to withdraw on cryptsy?

Are you serious ?

I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.

It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?

if i read this page https://www.linkedin.com/in/nicholas-mullesch-46b5a784 I belive he was only a admin. this is a description like a admin who starts and kills virtual machines on 12 servers. This should be the "big" wallet-guy? I was blinded very much from cryptsy.  

[wooder]

I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.

It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?

there are just two possiblities:

A) just one host and all wallets run on one host or
B) each wallet has it's own host, but the hosts are still allowed to communicate with each other

If normal network policies would be in place like restricted access for each host there would be no problem at all.

Seems they had a hot wallet and another hot wallet (as "cold" wallet) for each coin and all hosts where connected to each other without any network policy at all

[fartbags]

This is why I've been asking all the exchanges to implement a balance -> paper wallet, then paper wallet to -> balance sweep tool.

None of the exchanges listen because they are all garbage.

[sirazimuth]

http://www.coindesk.com/class-action-lawsuit-filed-digital-currency-exchange-cryptsy/

So this genius apparrently deposited 84 million dogecoin into Cryptsy on Dec 27 2015.
according to class action suit. WTF?  84 freakin million!!!   Are you shitting me?? deposit  $14,000  worth of crypto into an exchange
that has not been processing bitcoin withdrawals for PAST 3 MONTHS !!!!  HELLO? Jeezus... the stupid..it hurts!!  

[Spoetnik]

well according to guys on IRC Vern's million dollar house is just a false rumor..

[fartbags]

I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.

It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?

if i read this page https://www.linkedin.com/in/nicholas-mullesch-46b5a784 I belive he was only a admin. this is a description like a admin who starts and kills virtual machines on 12 servers. This should be the "big" wallet-guy? I was blinded very much from cryptsy.  
[/quote]


This guy only went to highschool...

[Gleb Gamow]

Hey, maybe Paul Vernon can have Johann Gevers to conduct an audit of Cryptsy and act as a liquidator to unite the altcoins with their original owners seeing that he did such a great job for Sonny Vleisides' Laissez Faire City: http://web.archive.org/web/20021215093450/http://www.lfcfa.net/financials/notes.html

The only asset the Trust has to pay off its creditors, is DMT shares. These shares will be used to
settle the Trust’s debt at $0.50 per DMT share. Excluding the ATM depositors, which are the
responsibility of JRH, the other creditors amount to less than $100,000. Therefore, about 2
million of the LFCIT’s original holding of 2.5 million shares will be available for distribution to
Founders and warrant holders. About half of this distribution will be to external Founders, and
half to JRH and his son. This will put JRH in a position to settle his debts to the ATM depositors
and the LFCIT.
 
The distribution will be done when the analysis of the ATM database has been completed and
reconciled with the other records of securities holdings. Further details will be announced on the
Laissez Faire City Founders Association (LFCFA) websites when the information becomes
available.

To be clear, if you can count to zero, then you've successfully calculated how much money was returned to those scammed while Sonny went to Italy to live with his Christian brother before being picked up, put in jail, and finally released with a $100 USD fine and three years probation just prior to coming to this forum and fucking more people because he was on a new track - a cryptocurrency track that he was already versed in two decades earlier while Paul Vernon was servicing 3-, 4- and 5-Star Generals.

Pretty fuckin' amazing, eh?

[specturul]

Fortunately I read the forum and not invest any of my btc in this fucking scam sites...
Are these the sites that destroy btc, and these the human to avoid business with in.

[sirazimuth]

Read this taken from http://blog.cryptsy.com/:

These are the approximate figures taken:
Bitcoin:  13,000 BTC
Litecoin:  300,000 LTC

This of course was a critical event for Cryptsy, however at the time the website was earning more than it was spending and we still have some reserves of those cryptocurrencies on hand.   The decision was made to pull from our profits to fill these wallets back up over time, thus attempting to avert complete closure of the website at that time.   This worked fine for awhile, as profits decreased due to low volume and low Bitcoin prices, we would adjust our spending accordingly.  It wasn’t until an article from Coinfire came out that contained many false accusations that things began to crumble.   The article basically caused a bank-run, and since we only had so much in reserves for those currencies problems began.  

Our current customer liabilities for BTC is around 10,000 BTC, so as you can see we would like to see the Bitcoins returned for both our users and for ourselves.

Here are the transaction details from the Bitcoin wallet:

https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

As you can see,  2014-07-29 13:17:36 is when the event occurred.   A very interesting fact here, however, is that those Bitcoins have not moved once since this happened.    This gives rise to the possibility they can be recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.
recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.

And watch this video from " Aug 13, 2014", nearly two weeks later:

https://www.youtube.com/watch?v=dJONR_UL1rw

"Unbelievable" is all i have to say ...

Or better "how to dig ones own hole" - presented by BigVerns

good lord! never seen that! thats gotta be the most damning body language evidence out there.

[fartbags]

Fortunately I read the forum and not invest any of my btc in this fucking scam sites...
Are these the sites that destroy btc, and these the human to avoid business with in.

There isn't much different from cryptsy and any other site like mt. gox, poloniex, bittrex, cryptopia, bluetrade, c-cex, etc. The only way to securely hold users funds is in cold wallets. This would mean withdraws have to be processed by a human which would lead to higher trading fees.

The biggest problem with all exchange is the minimal trading fees. I tried to run an exchange before. It's expensive. There isn't much profits in them.

Any legit exchange should look at easy ways for users to withdraw funds easily, and further easily sweep those coins back into the exchange.

[Gleb Gamow]

well according to guys on IRC Vern's million dollar house is just a false rumor..

Yep, with the state of Florida perpetuating said rumor so to fuck with the cryptocurrency community.

[Gleb Gamow]

Read this taken from http://blog.cryptsy.com/:

These are the approximate figures taken:
Bitcoin:  13,000 BTC
Litecoin:  300,000 LTC

This of course was a critical event for Cryptsy, however at the time the website was earning more than it was spending and we still have some reserves of those cryptocurrencies on hand.   The decision was made to pull from our profits to fill these wallets back up over time, thus attempting to avert complete closure of the website at that time.   This worked fine for awhile, as profits decreased due to low volume and low Bitcoin prices, we would adjust our spending accordingly.  It wasn’t until an article from Coinfire came out that contained many false accusations that things began to crumble.   The article basically caused a bank-run, and since we only had so much in reserves for those currencies problems began.  

Our current customer liabilities for BTC is around 10,000 BTC, so as you can see we would like to see the Bitcoins returned for both our users and for ourselves.

Here are the transaction details from the Bitcoin wallet:

https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

As you can see,  2014-07-29 13:17:36 is when the event occurred.   A very interesting fact here, however, is that those Bitcoins have not moved once since this happened.    This gives rise to the possibility they can be recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.
recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.

And watch this video from " Aug 13, 2014", nearly two weeks later:

https://www.youtube.com/watch?v=dJONR_UL1rw

"Unbelievable" is all i have to say ...

Or better "how to dig ones own hole" - presented by BigVerns

good lord! never seen that! thats gotta be the most damning body language evidence out there.

Paul Vernon: Thanks for stopping by, and who are you guys again. Ah, okay, just wanna to make sure I had the name right so that over lunch we can make fun of you for not asking why 6.5 million dollars of bitcoins were rumored to be stolen from Cryptsy. You guys are the bestest reporters in the whole wide world. When you guys came in here, I thought I was gonna wet my pant with piss, but it turned out I creamed them with sweet and salty jeez. Wanna taste or smell it to prove I'm not lyin'?

[fartbags]

If you're only taking 2.5 BTC in fees for every 1000 BTC in volume, like bittrex, then most days bittrex is only making like $200 to $1000 USD. This is why all exchanges are insecure. That's barely enough money to hire a quality security expert. Then there are server costs, customer service costs, new development costs, etc. These exchanges are running on barely any funds.

[DrxGxr]

this are the chat handles of the cryptsy defenders i can remember . they will stalk the chat and harass anyone asking for their money i suspect some of them might just be cryptsy staff member alts who knows.


lurker
ukmayhem
schad
terrik
jagrapolite
greenlion
jimmy00777

we should not allow this people to get away with  this crime.

[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.

Not really. People send these tiny transactions as a form of cheap advertising. Just scam the blockchain for the 10,000 most "interesting" addresses (most active, highest balance, most famous) and send them some dust from your vanity address.

Agree.

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?

Still, how about the transfer that originated from Localbitcoins.com ?
Someone was at the sending end of that transaction, if he/she can recall who he/she was doing business with, who knows what information that will reveal.

Afaik, localbitcoins transaction are either in person in cash, or with bank transfer.
Does localbitcoins.com maintains a history of all transactions, if possible ?

[Gleb Gamow]

2014-07-29 18:55:43: https://www.walletexplorer.com/wallet/0c07e0bec1002bd2



2014-07-29 18:55:43: https://www.walletexplorer.com/wallet/Cryptsy.com-old?page=1198



Only a retard thief would use a cherry picker to get the hard-to-reach fruit (coins in a cold wallet) but not touch the low-lying fruit (~133 BTC worth of bitcoins in a hot wallet), then not spend the loot for a year and a half even though no police report was filed, meanwhile Cryptsy continued to conduct business as usual as if a theft didn't occur, treating the incident like some pesky gnat buzzing around the office with hopes that cryptocurrency community members not banned from participating will opine a solution to rid the critter once and for all if a 1000 BTC reward is put on the table.

[Skatter]

Very sad news to hear.

[BenTuras]

Only a retard thief would use a cherry picker to get the hard-to-reach fruit (coins in a cold wallet) but not touch the low-lying fruit (~133 BTC worth of bitcoins in a hot wallet)

I think it was smart to not touch the hot wallet (with public address, right?) and only empty the cold(?) wallet of which the address was not known.