CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[Melech]

So my concern like others now are the coins that "weren't" stolen. Every other coin other than btc and ltc on there right? Or were the other alts sold into btc and ltc and then stolen? There must be a clear report of what is left. Can we get some sort of list up to show remaining balances left with proof they are still holding? If not cryptsy should provide one. These must be returned as if they go missing I will go mental! Even though we were trading last night. Did those btc really exist or was it just numbers on a screen. Doesn't help that cryptsy has gone offline now either lol

Here is a list of what I know/believe to be stolen from Craptsy: (have not seen info on other altcoins)

$6.63M in BTC (11,325 @$585) https://blockchain.info/tx/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf
$1.88M in LTC (247,508 @0.013 BTC) http://ltc.blockr.io/tx/info/61e61a63f35c951a16870df9e0a34df462ee473fde819d134da9485d2e7d8f44
$2.16M in Dash (456,501 @0.0081 BTC) http://explorer.dash.org/tx/ba798890d98936115001f69333956b558a4856c162516cb3ab46a6455de7a1eb
$2.05M in DOGE (9.727B @0.00000036 BTC) https://bitinfocharts.com/dogecoin/address/DN27P1saQQ1fYesKP1LHT5MdSXBpgqka85

Up to $12.72M so far (prices on July 29, 2014)...

Nice one Melech. Now how do we go about checking the other wallet amounts?

It all happened within a few hours, July 29, 2014 around 13:00-17:00 UTC... feel free to check altcoin blockchains for large tx during that 4-hour window...

[1715000257]

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[coinedabit]

So my concern like others now are the coins that "weren't" stolen. Every other coin other than btc and ltc on there right? Or were the other alts sold into btc and ltc and then stolen? There must be a clear report of what is left. Can we get some sort of list up to show remaining balances left with proof they are still holding? If not cryptsy should provide one. These must be returned as if they go missing I will go mental! Even though we were trading last night. Did those btc really exist or was it just numbers on a screen. Doesn't help that cryptsy has gone offline now either lol

Here is a list of what I know/believe to be stolen from Craptsy: (have not seen info on other altcoins)

$6.63M in BTC (11,325 @$585) https://blockchain.info/tx/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf
$1.88M in LTC (247,508 @0.013 BTC) http://ltc.blockr.io/tx/info/61e61a63f35c951a16870df9e0a34df462ee473fde819d134da9485d2e7d8f44
$2.16M in Dash (456,501 @0.081 BTC) http://explorer.dash.org/tx/ba798890d98936115001f69333956b558a4856c162516cb3ab46a6455de7a1eb
$2.05M in DOGE (9.727B @0.00000036 BTC) https://bitinfocharts.com/dogecoin/address/DN27P1saQQ1fYesKP1LHT5MdSXBpgqka85

Up to $12.72M so far (prices on July 29, 2014)...

Nice one Melech. Now how do we go about checking the other wallet amounts?

It all happened within a few hours, July 29, 2014 around 13:00-17:00 UTC... feel free to check altcoin blockchains for large tx during that 4-hour window...

Is there something like goochain that checks blockchains by date? 

[CryptoNick]

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.

Thanks for expanding on my initial idea that the users who have lost their coins should own Cryptsy. But what I had envisioned would be that these are shareholders who can actually make a profit later now too and keep their BTC and LTC to be paid back over time with trade fees. Divided up but now large holders get larger shares of the profits later once topped up. They deserve this extra profit too since their funds are frozen and they couldn't sell with them in the open markets. And they were lured into an insolvent exchange to top it off.

Obviously someone reputable would have to implement the system and make it so that funds are safe.

An Angel investor won't buy the 10,000 BTC and 300,000 LTC since the funds would just leave the site and never return. And they would have to do business with current management.

Allowing the community to own and operate Cryptsy makes it so that there is a possibility of getting their coins back through trading. Traders could at least risk some exposure at first to test it out and most of the people on the site are those who have BTC stuck there so it is actually a huge market to trade inside. Since all of these users are coming back for sure when controlled and operated properly. You now have stabilized the problem and attempt to grow from it to benefit the people who have their funds stolen. They own the sucker outright as a group right now anyways! It was their funds and there is no FDIC Insured status and Cryptsy would have had to been audited to get insurance and that company would have prevented the entire fiasco since they would have measures in place and possibly be a part of the Multi Sig on the Cold Wallets too.

Gleb could be the new CEO
Peonminer CTO
Spoetnik PR and Snackbar attendant...

A possible reason the BTC hasn't moved is that they can leave the coins there past a statute of limitations and wait it out? Not Moving the funds might have been the smartest play. As they are not traced and could be used years from now when BitCoin is at $2000 per coin and all the heat is off of them.

I also had an idea I call BitMarshal that tracks all reportedly stolen funds (Large Validated Transactions with High Exposure) and can alert any wallet that it has accepted Stolen property. So that they can return the funds and not trade with the sending party, once the funds hit an Exchange they are taken and sent back. Only problem would be if the funds are never spent or only sent to exchanges with wallets that don't use BitMarshal or who don't abide by it. Cryptsy would have to stay open to then disburse the funds back to the rightful owners. So the actual accounts would have to stay as they are but could be earning against their negative balance as time goes on. Big problem was that trading was allowed to continue and more people got stuck in the middle as time went on.

Any insider could have used the opportunity of not coming forward with the Hack to get their coins out on the incoming BTC deposits, leaving unsuspecting depositors holding the bag. Technically it doesn't even have to be an insider just luck that they leave during that period of time and someone else takes their place. Not coming forward makes it seem like Cryptsy had to let their insiders get outside first.

[garmin]

vern's kids will be so proud of daddy.. Just like bernie madoff's kids. They can put money on his books for Christmas and holidays.
he will look dapper in his county orange jumpsuit and lipstick...
 

[coinedabit]

So cryptsy is down but my CAT trader is still showing my coin balances. Cryptostocks is down too as usual. Since trading fees went to 0 there never came another payout from Paul's shares either.

Shares in a new decentralised cryptsy sounds good to me and  bitmarshall style type software has gotta be out there already no?

[DrxGxr]

So cryptsy is down but my CAT trader is still showing my coin balances. Cryptostocks is down too as usual. Since trading fees went to 0 there never came another payout from Paul's shares either.

Shares in a new decentralised cryptsy sounds good to me and  bitmarshall style type software has gotta be out there already no?

we don't want no bloody cryptsy shares based on lost of earnings alone we already own that site . this is purely a criminal case of grand fraud and deception . since the day he claimed money was stolen he should have stopped all deposits and has the money is not even his in the first place but in his care he is clearly obliged to report this its not some kind of option to report or not .a thief will always say i didn't steal anything everyone knows this . big birds statements and statements /behavior of the cryptsy crew during that past 4 months shows that this has been intentional all the while . they tried the tricks they could to block people withdrawing claiming you need to verify your account . BTW that was horus pushing that verification crap . every single one of them is /are guilty until proven innocent has thats what all the evidence says. WE DO NOT WANT ANY SHARES FROM YOUR PISS OF CRAP CRYPTSY WE ONLY WANT WHAT IS OURS AND NOT YOURS.
guys stop bringing the shares in the company crap only making people more angry at this pathetic bastards that think they can help them self to peoples things and get away with. not letting any of them get away with this is my only concern don't offer no bloody silly dead shares thanks.

[ThePhwner]

Reporter: Solvency is a big issue when it comes to exchanges
Vern: Reddit is blowing our insolvency issue way out of proportion
Vern: We don't have a large withdraw pending in our queue

What Vern did not say (read between the lines) is, "we do not have a problem with solvency"

's Tru, brah. If you delete everyone's coins and orders and withdrawal requests... poof! No large queue!

[fartbags]

So cryptsy is down but my CAT trader is still showing my coin balances. Cryptostocks is down too as usual. Since trading fees went to 0 there never came another payout from Paul's shares either.

Shares in a new decentralised cryptsy sounds good to me and  bitmarshall style type software has gotta be out there already no?

we don't want no bloody cryptsy shares based on lost of earnings alone we already own that site . this is purely a criminal case of grand fraud and deception . since the day he claimed money was stolen he should have stopped all deposits and has the money is not even his in the first place but in his care he is clearly obliged to report this its not some kind of option to report or not .a thief will always say i didn't steal anything everyone knows this . big birds statements and statements /behavior of the cryptsy crew during that past 4 months shows that this has been intentional all the while . they tried the tricks they could to block people withdrawing claiming you need to verify your account . BTW that was horus pushing that verification crap . every single one of them is /are guilty until proven innocent has thats what all the evidence says. WE DO NOT WANT ANY SHARES FROM YOUR PISS OF CRAP CRYPTSY WE ONLY WANT WHAT IS OURS AND NOT YOURS.
guys stop bringing the shares in the company crap only making people more angry at this pathetic bastards that think they can help them self to peoples things and get away with. not letting any of them get away with this is my only concern don't offer no bloody silly dead shares thanks.

I will take shares if that's all they can give me back. It's better than a kick in the pants.

[cryptomann420]

I hate to break the news THE RABBIT HOLE go s a lot further as I look at the blockchain!!  This will be the BIGGEST THEFT IN CRYPTO to go down in HISTORY!!!!! I guess we have to wait for the TOTAL!
1-- https://bitcoinchain.com/block_explorer/address/1NaoLM9wnsC2JH4wmZcYW33CiUY5HeLUaB    
2-- https://blockchain.info/en/address/16ZbpCEyVVdqu8VycWR8thUL2Rd9JnjzHt
3-- https://blockchain.info/address/12KBnNKkEdjcojNZ7ceBhDBJWhMZbtttgr

[DrxGxr]

So cryptsy is down but my CAT trader is still showing my coin balances. Cryptostocks is down too as usual. Since trading fees went to 0 there never came another payout from Paul's shares either.

Shares in a new decentralised cryptsy sounds good to me and  bitmarshall style type software has gotta be out there already no?

we don't want no bloody cryptsy shares based on lost of earnings alone we already own that site . this is purely a criminal case of grand fraud and deception . since the day he claimed money was stolen he should have stopped all deposits and has the money is not even his in the first place but in his care he is clearly obliged to report this its not some kind of option to report or not .a thief will always say i didn't steal anything everyone knows this . big birds statements and statements /behavior of the cryptsy crew during that past 4 months shows that this has been intentional all the while . they tried the tricks they could to block people withdrawing claiming you need to verify your account . BTW that was horus pushing that verification crap . every single one of them is /are guilty until proven innocent has thats what all the evidence says. WE DO NOT WANT ANY SHARES FROM YOUR PISS OF CRAP CRYPTSY WE ONLY WANT WHAT IS OURS AND NOT YOURS.
guys stop bringing the shares in the company crap only making people more angry at this pathetic bastards that think they can help them self to peoples things and get away with. not letting any of them get away with this is my only concern don't offer no bloody silly dead shares thanks.

sometimes things go beyond just being about the money.

I will take shares if that's all they can give me back. It's better than a kick in the pants.

[not.you]

With all the issues with centralized exchanges -- run by people... I am seriously surprised someone hasn't come up with a de-centralized exchange platform.  Not controlled by any one person... but by the network itself.

Someone did but it had an IRC backdoor and stole everyone's money.

[garmin]

I hate to break the news THE RABBIT HOLE go s a lot further as I look at the blockchain!!  This will be the BIGGEST THEFT IN CRYPTO to go down in HISTORY!!!!!

[Melech]

I hate to break the news THE RABBIT HOLE go s a lot further as I look at the blockchain!!  This will be the BIGGEST THEFT IN CRYPTO to go down in HISTORY!!!!!

Hate to break it to you, but MtGox lost something like 850,000 BTC (worth $1000 each at the time)... GOXtsy is still much lower than MtGox

$850,000,000 vs $12,700,000

[garmin]

I hate to break the news THE RABBIT HOLE go s a lot further as I look at the blockchain!!  This will be the BIGGEST THEFT IN CRYPTO to go down in HISTORY!!!!!

Hate to break it to you, but MtGox lost something like 850,000 BTC (worth $1000 each at the time)... GOXtsy is still much lower than MtGox

$850,000,000 vs $12,700,000

I don't think all the maths are in just yet...

[not.you]

I hate to break the news THE RABBIT HOLE go s a lot further as I look at the blockchain!!  This will be the BIGGEST THEFT IN CRYPTO to go down in HISTORY!!!!!

Hate to break it to you, but MtGox lost something like 850,000 BTC (worth $1000 each at the time)... GOXtsy is still much lower than MtGox

$850,000,000 vs $12,700,000

I don't think all the maths are in just yet...

Yeah but to be fair the comments from that banskter sellout Mike Hearn need to be on there too.  And all the various times and places where his comments were reposted or reported in the news.  I am inclined to believe the drop has a lot more to do with that than it does crypt-sty.

[RoomBot]

Can anybody confirm their Cryptsy BTC balance? I cannot at this present time, gives me a zero balance. :/

Hello?

Wake up buddy - it's gone.  Over.  Goodbye.

http://blog.cryptsy.com/

They have updated it, read!

"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."

You guys called it!  It was all COINFIRE's fault!  /s

[garmin]

I hate to break the news THE RABBIT HOLE go s a lot further as I look at the blockchain!!  This will be the BIGGEST THEFT IN CRYPTO to go down in HISTORY!!!!!

Hate to break it to you, but MtGox lost something like 850,000 BTC (worth $1000 each at the time)... GOXtsy is still much lower than MtGox

$850,000,000 vs $12,700,000

I don't think all the maths are in just yet...

Yeah but to be fair the comments from that banskter sellout Mike Hearn need to be on there too.  And all the various times and places where his comments were reposted or reported in the news.  I am inclined to believe the drop has a lot more to do with that than it does crypt-sty.

The whole thing is fucked up.. But I'm a buyer of BTC after they beat it up enough. The prime-time media has not kicked in yet. Still long on crypto! just wanna see vern's ass in prison..  
....PRICELESS

[Arrakeen]

Anyone else regarding this as a great time to buy, ratjer than a killer crash? Butcoin always bounces back

[Gleb Gamow]

So my concern like others now are the coins that "weren't" stolen. Every other coin other than btc and ltc on there right? Or were the other alts sold into btc and ltc and then stolen? There must be a clear report of what is left. Can we get some sort of list up to show remaining balances left with proof they are still holding? If not cryptsy should provide one. These must be returned as if they go missing I will go mental! Even though we were trading last night. Did those btc really exist or was it just numbers on a screen. Doesn't help that cryptsy has gone offline now either lol

Here is a list of what I know/believe to be stolen from Craptsy: (have not seen info on other altcoins)

$6.63M in BTC (11,325 @$585) https://blockchain.info/tx/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf
$1.88M in LTC (247,508 @0.013 BTC) http://ltc.blockr.io/tx/info/61e61a63f35c951a16870df9e0a34df462ee473fde819d134da9485d2e7d8f44
$2.16M in Dash (456,501 @0.081 BTC) http://explorer.dash.org/tx/ba798890d98936115001f69333956b558a4856c162516cb3ab46a6455de7a1eb
$2.05M in DOGE (9.727B @0.00000036 BTC) https://bitinfocharts.com/dogecoin/address/DN27P1saQQ1fYesKP1LHT5MdSXBpgqka85

Up to $12.72M so far (prices on July 29, 2014)...

Nice one Melech. Now how do we go about checking the other wallet amounts?

It all happened within a few hours, July 29, 2014 around 13:00-17:00 UTC... feel free to check altcoin blockchains for large tx during that 4-hour window...

From my calculations, the 'inside job' started ~9 hours earlier: https://bitcointalk.org/index.php?topic=1173703.msg13574270;topicseen#msg13574270

[iCEBREAKER]

Can anybody confirm their Cryptsy BTC balance? I cannot at this present time, gives me a zero balance. :/

Hello?

Wake up buddy - it's gone.  Over.  Goodbye.

http://blog.cryptsy.com/

They have updated it, read!

"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."

You guys called it!  It was all COINFIRE's fault!  /s

Big Vern fires back !