CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[GoldSeal]

I've got an option for Vern. Don't allow any trading. Allow all withdrawals immediately in all other coins other than BTC LTC. After all coins coins have been disbursed, file for bankruptcy and never come back to the US again.

I love how this guy is holding other coin balances hostage to make people dance for him. This is crazy.

[Gleb Gamow]

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

2014-07-29 13:17:36: 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.

The 20 MILLION DOLLAR KNAT LOLLLLLLLLLLLLLLL


FUCK YOU CRYPTSY

I just caught my mistake:

2014-07-29 13:17:36: https://www.walletexplorer.com/wallet/0c07e0bec1002bd2



I wanted to post more in this post but there's a Skype chat awaiting my ass. Only the second time I've ever used Skype.

I'll be bumping this post later to reveal something of interest.

[peonminer]

<snipped everything but...>

https://www.walletexplorer.com/address/1EzK7T326C3eU3pi4MWFDzUptg143vV4K5?page=35

That wallet address was first funded at approximately lunchtime in Florida on July 29, 2014, the day of Cryptsy's inside job of stealing ten million dollars.

CRYPTSY WAS AN INSIDE JOB, NEVER FORGET!!!!

FBI YOU CAN PAY US PI FEES IF YOU WANT SINCE WE'RE DOING MOST OF THE LEG WORK 😄

[Arrakeen]

<snipped everything but...>

https://www.walletexplorer.com/address/1EzK7T326C3eU3pi4MWFDzUptg143vV4K5?page=35

That wallet address was first funded at approximately lunchtime in Florida on July 29, 2014, the day of Cryptsy's inside job of stealing ten million dollars.

CRYPTSY WAS AN INSIDE JOB, NEVER FORGET!!!!

FBI YOU CAN PAY US PI FEES IF YOU WANT SINCE WE'RE DOING MOST OF THE LEG WORK 😄

If only the FBI would actually use their power for socially justifiable cases like this, instead of using btc to buy drugs off silk road ;_;

[digit]

All the "common practices" of those shady other exchanges, its as if he simply made a list of what cryptsy was doing themselves and then turned around accused all the other exchanges of it.   
and 3rd party CPA audit?  Were they aware of the full situation and became a part of this conspiracy or were they kept in the dark intentionally by cryptsy with false reports pass on to them to sign off on?

anyway some BitJohn dated July 21, 2014 (a week before the alleged hack they say occurred on July 29 2014):

, didnt went through until the pumping/dumping was over,even when confirmations were 4-5x of required amount.

This happened a couple times and was completely related to an overwhelming number of deposits to a single threaded wallet. We have new systems that better handle this now but many altcoin wallet just cant handle that many inputs in a block. DOGE for instance would have 200 inputs to our wallet every time it found a block which with DOGE is very fast. Any fast block time coin has this issue.

Also, i have seen that many times certain coins get bought off insanely on other exchanges, and then cryptsy adds them the next day.. pure inside info trading,shamefull

We do competitive adds meaning other exchanges have high volume we will add the coin http://www.cryptocoincharts.info/v2/coins/info I would not call using that site insider trading.

Just stay away, its a shady site, useless support and questionable admin.

Keep these things in mind:
- Cryptsy is a public company and is US based with over 40 employees. You can drive there and visit:
160 Congress Park Dr Suite 101
Delray Beach, FL 33445
- We are led by our fearless leader Paul Vernon an actual face you can find at just about any Bitcoin conference.
- We have quarterly audits by a 3rd party CPA firm to ensure existence of funds.
- We have just finished an audit on June 30th for our crytocurrency balances, which is why we held off on launching USD until July 1st.
- We practice stringent security practices which have kept us running for well over a year and a half.
- We work hard to stay compliant with Federal laws ensuring your funds are not seized. ACAM certified CFO.

Many of the exchanges that have popped up are unknown entities run by shadowy figures outside of the regulations. Common practices I have noted other exchanges running:
- Fractional Reserves to include using customers funds to trade on their markets for perceived volume utilizing site integrated bots.
- Volume numbers that are fictional and fake order books in order to give folks the impression they are bigger or more successful than they are.
      - I have found numerous exchanges reporting volume numbers that essentially state their customers typically put .04 BTC or more per trade that is quite a bit more than BTC-e or Cryptsy per trade numbers
- Collusion between groups of coin "developers" to bring coins onto their exchange to move the perceived volume onto. Usually involving bribes.
      - Some exchanges even do this publicly.
- -Incredibly unsafe security practices.
      - Complete bypass of security questions.
      - No utilization of cold wallets.
      - Major DB vulnerabilities compromising not only wallet but account info.
      - Addition of coins with no coin code review.
-  Running outside of the law in countries where its only a matter of time before funds are seized.
      - Several of these companies are based in the EU or the US running outside of compliance laws. Believing these only apply to FIAT. Some completely unregistered.

Anyhow that is my rant Cryptsy does everything we can to stay above board. Bottom line your coin is safe here and we appreciate all of our customers.

imgur of the quote https://i.imgur.com/25mCI7B.png and snapshot of thread found here https://archive.is/Pgi79

[peonminer]

All the "common practices" of those shady other exchanges, its as if he simply made a list of what cryptsy was doing themselves and then turned around accused all the other exchanges of it.   
and 3rd party CPA audit?  Were they aware of the full situation and became a part of this conspiracy or were they kept in the dark intentionally by cryptsy with false reports pass on to them to sign off on?

anyway some BitJohn dated July 21, 2014 (a week before the alleged hack they say occurred on July 29 2014):

, didnt went through until the pumping/dumping was over,even when confirmations were 4-5x of required amount.

This happened a couple times and was completely related to an overwhelming number of deposits to a single threaded wallet. We have new systems that better handle this now but many altcoin wallet just cant handle that many inputs in a block. DOGE for instance would have 200 inputs to our wallet every time it found a block which with DOGE is very fast. Any fast block time coin has this issue.

Also, i have seen that many times certain coins get bought off insanely on other exchanges, and then cryptsy adds them the next day.. pure inside info trading,shamefull

We do competitive adds meaning other exchanges have high volume we will add the coin http://www.cryptocoincharts.info/v2/coins/info I would not call using that site insider trading.

Just stay away, its a shady site, useless support and questionable admin.

Keep these things in mind:
- Cryptsy is a public company and is US based with over 40 employees. You can drive there and visit:
160 Congress Park Dr Suite 101
Delray Beach, FL 33445
- We are led by our fearless leader Paul Vernon an actual face you can find at just about any Bitcoin conference.
- We have quarterly audits by a 3rd party CPA firm to ensure existence of funds.
- We have just finished an audit on June 30th for our crytocurrency balances, which is why we held off on launching USD until July 1st.
- We practice stringent security practices which have kept us running for well over a year and a half.
- We work hard to stay compliant with Federal laws ensuring your funds are not seized. ACAM certified CFO.

Many of the exchanges that have popped up are unknown entities run by shadowy figures outside of the regulations. Common practices I have noted other exchanges running:
- Fractional Reserves to include using customers funds to trade on their markets for perceived volume utilizing site integrated bots.
- Volume numbers that are fictional and fake order books in order to give folks the impression they are bigger or more successful than they are.
      - I have found numerous exchanges reporting volume numbers that essentially state their customers typically put .04 BTC or more per trade that is quite a bit more than BTC-e or Cryptsy per trade numbers
- Collusion between groups of coin "developers" to bring coins onto their exchange to move the perceived volume onto. Usually involving bribes.
      - Some exchanges even do this publicly.
- -Incredibly unsafe security practices.
      - Complete bypass of security questions.
      - No utilization of cold wallets.
      - Major DB vulnerabilities compromising not only wallet but account info.
      - Addition of coins with no coin code review.
-  Running outside of the law in countries where its only a matter of time before funds are seized.
      - Several of these companies are based in the EU or the US running outside of compliance laws. Believing these only apply to FIAT. Some completely unregistered.

Anyhow that is my rant Cryptsy does everything we can to stay above board. Bottom line your coin is safe here and we appreciate all of our customers.

imgur of the quote https://i.imgur.com/25mCI7B.png and snapshot of thread found here https://archive.is/Pgi79

"The Crooksy Playbook"

[MemberCount+1]

Allow to withdrawals the (altcoins)balance, if available on the user-deposits-adresses. Would be one step.

[GoldSeal]

Withdrawals the users-deposits-balance, if available. Would be one step.

strong agree. you can try it out by allowing people to withdraw casinocoin and if that goes well then maybe allow some other coins to withdraw...

[GoldSeal]

Paul,

Here's another option. Sell the company - 100% - to the customers for the amount of the shortage. Distribute ownership to the depositors based on what they have trapped in the company. Then reset all balances in cryptsy to 0 and the new cryptsy get a new CEO and reopen. All coins on balance go into the exchange's reserves. Over time, cryptsy can buy shares back using it's profits. You never come back to the US again and you hold no business interest in Cryptsy.

Your liability is with the depositors. Turn the company over to the depositors. You can do this today and nobody has to wait two years for a bankruptcy proceeding.

If you are a depositor and would rather wait 2 - 3 years for a fraction paid at bankruptcy, speak up.

[Gleb Gamow]

<snipped everything but...>

https://www.walletexplorer.com/address/1EzK7T326C3eU3pi4MWFDzUptg143vV4K5?page=35

That wallet address was first funded at approximately lunchtime in Florida on July 29, 2014, the day of Cryptsy's inside job of stealing ten million dollars.

CRYPTSY WAS AN INSIDE JOB, NEVER FORGET!!!!

FBI YOU CAN PAY US PI FEES IF YOU WANT SINCE WE'RE DOING MOST OF THE LEG WORK 😄

Are we allowed to double-dip since Paul's already goin' pay us 1000 BTC for our efforts being it was a tough case and all. Took almost a full 20-post page on this thread to crack. HAHAHA

[BlindMayorBitcorn]

As an aside: I was in the Cryptsy trollbox when the Lucky7 crew was shilling that shit and I remember thinking they had to be the slickest pitchmen in crypto history. They were the real professionals, unfortunately.

[GoldSeal]

Maybe they weren't stealing the coins. Maybe they were just protecting them from Paul Vernon.

[Gleb Gamow]

Approximate time of theft: https://plus.google.com/explore/cryptsy



12 hours before the theft: https://bitcointalk.org/index.php?topic=714870.0

[Libertymind]

Paul,

Here's another option. Sell the company - 100% - to the customers for the amount of the shortage. Distribute ownership to the depositors based on what they have trapped in the company. Then reset all balances in cryptsy to 0 and the new cryptsy get a new CEO and reopen. All coins on balance go into the exchange's reserves. Over time, cryptsy can buy shares back using it's profits. You never come back to the US again and you hold no business interest in Cryptsy.

Your liability is with the depositors. Turn the company over to the depositors. You can do this today and nobody has to wait two years for a bankruptcy proceeding.

If you are a depositor and would rather wait 2 - 3 years for a fraction paid at bankruptcy, speak up.

That is really smart. Better than nothing.

[MemberCount+1]

4. Spread the loss to all users in the system and allow trades to continue.

I would donate a amount of BTC to reopen Cryptsy. Because i can trade my miner-rewards again. I think, there must be a counter on the page who shows the negativ balance and a deposit-adress to donate/reduce this number. Or I accept a higher fee.

Paul,

Here's another option. Sell the company - 100% - to the customers for the amount of the shortage. Distribute ownership to the depositors based on what they have trapped in the company. Then reset all balances in cryptsy to 0 and the new cryptsy get a new CEO and reopen. All coins on balance go into the exchange's reserves. Over time, cryptsy can buy shares back using it's profits. You never come back to the US again and you hold no business interest in Cryptsy.

Your liability is with the depositors. Turn the company over to the depositors. You can do this today and nobody has to wait two years for a bankruptcy proceeding.

If you are a depositor and would rather wait 2 - 3 years for a fraction paid at bankruptcy, speak up.

in a little bit other form, but same idea
https://bitcointalk.org/index.php?topic=1173703.msg13559759#msg13559759

[Gleb Gamow]

This guy paid us a visit on the Skype chat: https://twitter.com/thejroq/status/473155709505667072



https://bitcointalk.org/index.php?action=profile;u=231621;sa=showPosts

[GoldSeal]

Paul,

Here's another option. Sell the company - 100% - to the customers for the amount of the shortage. Distribute ownership to the depositors based on what they have trapped in the company. Then reset all balances in cryptsy to 0 and the new cryptsy get a new CEO and reopen. All coins on balance go into the exchange's reserves. Over time, cryptsy can buy shares back using it's profits. You never come back to the US again and you hold no business interest in Cryptsy.

Your liability is with the depositors. Turn the company over to the depositors. You can do this today and nobody has to wait two years for a bankruptcy proceeding.

If you are a depositor and would rather wait 2 - 3 years for a fraction paid at bankruptcy, speak up.

That is really smart. Better than nothing.

yeah this one would actually work.

[GoldSeal]

4. Spread the loss to all users in the system and allow trades to continue.

I would donate a amount of BTC to reopen Cryptsy. Because i can trade my miner-rewards again. I think, there must be a counter on the page who shows the negativ balance and a deposit-adress to donate/reduce this number. Or I accept a higher fee.

Paul,

Here's another option. Sell the company - 100% - to the customers for the amount of the shortage. Distribute ownership to the depositors based on what they have trapped in the company. Then reset all balances in cryptsy to 0 and the new cryptsy get a new CEO and reopen. All coins on balance go into the exchange's reserves. Over time, cryptsy can buy shares back using it's profits. You never come back to the US again and you hold no business interest in Cryptsy.

Your liability is with the depositors. Turn the company over to the depositors. You can do this today and nobody has to wait two years for a bankruptcy proceeding.

If you are a depositor and would rather wait 2 - 3 years for a fraction paid at bankruptcy, speak up.

in a little bit other form, but same idea
https://bitcointalk.org/index.php?topic=1173703.msg13559759#msg13559759

The unlicensed securities sound like mcxfees. SEC would never allow that structure. Selling the company to the depositors only works if the present management team is removed and a new team is brought in.

Cryptsy already has shares. These can be allocated to the depositors or a separate company that represents the depositors.

[drasius]

Is there any thread for providing solutions intead complaining all the time. A bankruptcy doesn't solve the problem, if a thief robs a bank, who person is the most responsible of that? obviously people said the thief, although director has his part of responsibility if security measures were bad or insufficient. The bad person here is the thief.

I want to provide my solution for getting back my money that is the main matter here.

Trading must continue on cryptsy, allowing smalls withdrawals per user and day (like banks). Users remain trading at cryptsy in this crisis should own a part of the company and its profits.

CEO should change
Continue to pursue the thiefs for trying to recover the lost coins.

Only complaining doesn't resolve anything.

[bitcoinpete]

Is there any thread for providing solutions intead complaining all the time. A bankruptcy doesn't solve the problem, if a thief robs a bank, who person is the most responsible of that? obviously people said the thief, although director has his part of responsibility if security measures were bad or insufficient. The bad person here is the thief.

I want to provide my solution for getting back my money that is the main matter here.

Trading must continue on cryptsy, allowing smalls withdrawals per user and day (like banks). Users remain trading at cryptsy in this crisis should own a part of the company and its profits.

CEO should change
Continue to pursue the thiefs for trying to recover the lost coins.

Only complaining doesn't resolve anything.

Big Vern and his Minions should sit in a dark cell