CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[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.

I think you are mistaken. $12,700,000 beats a foundation member. Millions and Millions and Millions.. or a dude's say so... IT"S MONEY!

I guess we'll have to agree to disagree.  12.7 million is just under 2.2% of the 5.8 billion market cap.  But the price dropped around 18% over that loss?  Makes no sense.

[Melech]

I guess we'll have to agree to disagree.  12.7 million is just under 2.2% of the 5.8 billion market cap.  But the price dropped around 18% over that loss?  Makes no sense.

Price dropped for various reasons (crypto is very speculative)... the 11k stolen BTC hasn't moved

[owlcatz]

I guess we'll have to agree to disagree.  12.7 million is just under 2.2% of the 5.8 billion market cap.  But the price dropped around 18% over that loss?  Makes no sense.

Price dropped for various reasons (crypto is very speculative)... the 11k stolen BTC hasn't moved

It has not moved in over a year. why would it now that all eyes are on them? This is clearly an inside job and some fucktard from cryptsy has all those private keys, guaranteed.  

[BitcoinCharlie]

If I ran an exchange, and had $12.7 million stolen from my investors...

I would report it to the police/FBI immediately... right?

They might have found the culprit 18 months ago, and returned the funds?

Perhaps it was an inside job...

Or just another episode of amateur hour?

Who doesn't report a $12.7M theft to the police?  Anyone besides a criminal?

A criminal or somebody that has got a lot of other "matters" that they wish to remain hidden as well...

[kelsey]

If I ran an exchange, and had $12.7 million stolen from my investors...

I would report it to the police/FBI immediately... right?

They might have found the culprit 18 months ago, and returned the funds?

Perhaps it was an inside job...

Or just another episode of amateur hour?

Who doesn't report a $12.7M theft to the police?  Anyone besides a criminal?

come on think about it, its not just as simple as dialing 11, you know there's a big 9 in there too.. ..geees, i mean its so much easier to simply manipulate and fractionally reserve accounts for a year and a half, and then hey just file bankruptcy   

[Melech]

I guess we'll have to agree to disagree.  12.7 million is just under 2.2% of the 5.8 billion market cap.  But the price dropped around 18% over that loss?  Makes no sense.

Price dropped for various reasons (crypto is very speculative)... the 11k stolen BTC hasn't moved

It has not moved in over a year. why would it now that all eyes are on them? This is clearly an inside job and some fucktard from cryptsy has all those private keys, guaranteed.  

Plenty of reasons why it hasn't moved...

If you stole $6mil in BTC, would you sell it for USD and leave a trail to your bank account?

[cryptomann420]

Look What i just FOUND! How can there be withdrawals going ON? https://www.etherchain.org/account/0xc47aaa860008be6f65b58c6c6e02a84e666efe31#comments
Account: 0xc47aaa860008be6f65b58c6c6e02a84e666efe31
Balance: 3.0683816859162317 Ether
Name: Cryptsy (Hot Wallet)
Transactions sent
Transactions received
Mined Blocks
Code
Disassembled Code
Comments
Last 100 sent transactions

Hash   To   Amount   Time
0xa0804b94...   0xe23e033d1cdd8acd63f01917a7a4752da74e6a74   5.15923538 Ether   2016-01-17 02:00:14 (2 hours ago)
0xf7e218b0...   0x927565647fdd71e8537dea6523af7fcef1387c2d   0.994 Ether   2016-01-17 01:55:35 (2 hours ago)
0x583a2d78...   0xefd24d535aad04e4c92a8c45f03f3b49450689bf   0.994 Ether   2016-01-17 01:05:35 (3 hours ago)
0x95e970c8...   0xe17cdf869130ad0a0db9e683d7e9ae65cb32d293   2.2994400000000003 Ether   2016-01-17 00:10:34 (4 hours ago)
0x0c6f59bc...   0xa0a98704343215f7786e20292e79294ac44fc56b   0.994 Ether   2016-01-16 18:55:23 (9 hours ago)
0x9faf134a...   0xb19d056ad01977dbf2677d106ef6097b4564d68d   2.08208648 Ether   2016-01-16 16:45:28 (11 hours ago)
0x22b16688...   0x10153295e3e2b26c5fc850848dbbd8fbc232ac87   0.994 Ether   2016-01-16 16:30:16 (12 hours ago)
0x9a0ff275...   0xcd6d996bf303be127eaaf8ef4f5340e2d1fcec78   1.38096796 Ether   2016-01-16 15:50:16 (12 hours ago)
0x863d5ac2...   0xa11c50d706d6a6161e83cf499b5083626b66003e   6.06178974 Ether   2016-01-16 14:55:40 (13 hours ago)
0x4a985f82...   0xf3bf94d9fc2f7eda42f4767985553f3b0516486a   8.23872409 Ether   2016-01-16 13:40:50 (14 hours ago)
0xaafa7517...   0xe0b7787f1588ddc87d9e07776c48cd945d1f8aae   9.949 Ether   2016-01-16 12:36:08 (15 hours ago)
0x16684d2e...   0x17caff911e38bd06b9e9e3e3e8f5fd44e0cc847a   9.949 Ether   2016-01-16 11:10:18 (17 hours ago)
0xb9350365...   0x0322f2a6b7b9116d3cb77d06208ed940002aeb07   11.472004829999999 Ether   2016-01-16 11:10:16 (17 hours ago)
0x4dbcd7a7...   0xc65e7fb1611c967cfa9d4c8c5582dbb5a06944c4   6.28556759 Ether   2016-01-16 07:00:16 (21 hours ago)
0xaf2c4132...   0xe0b7787f1588ddc87d9e07776c48cd945d1f8aae   0.994 Ether   2016-01-16 06:00:39 (a day ago)
0x9f7307bd...   0xb70db7a05024b148ec2a66d1d1f3590e013bc4d0   0.994 Ether   2016-01-16 05:15:32 (a day ago)
0x51164f01...   0xa585fad2cedb90102ef6f2ee301789d40324dde2   19.899 Ether   2016-01-16 02:25:16 (a day ago)
0x528921c4...   0xa585fad2cedb90102ef6f2ee301789d40324dde2   29.849 Ether   2016-01-16 02:15:31 (a day ago)
0xdd931154...   0xa585fad2cedb90102ef6f2ee301789d40324dde2   33.931681019999998 Ether   2016-01-16 02:10:27 (a day ago)
0x07e68e99...   0xa585fad2cedb90102ef6f2ee301789d40324dde2   39.799 Ether   2016-01-16 02:05:19 (a day ago)
0x673c8187...   0x9aaeed7a32f746aaac21422e60a39983a7a830ca   9.949 Ether   2016-01-16 02:00:23 (a day ago)
0x295674b6...   0x98f7ff902157e1a3d1476e8fcfb843fdb3212b92   225.32456167000002 Ether   2016-01-16 01:35:34 (a day ago)
0x609d9000...   0x86177cb965e70fe408d75bc1e377d743929232cb   6.05333866 Ether   2016-01-14 18:01:31 (2 days ago)
0x47451eed...   0x10153295e3e2b26c5fc850848dbbd8fbc232ac87   5.0735 Ether   2016-01-14 18:01:31 (2 days ago)
0x8f15df99...   0xa9db39bb644396200c1e9250af8daed79dc87d8a   2.50774106 Ether   2016-01-14 18:01:09 (2 days ago)
0x661c8241...   0x6e2035c3cb6eb480e07749d4fa252837d91bfe2d   1591.999 Ether   2016-01-14 18:01:09 (2 days ago)
0x02e28630...   0x47687c5a214c55ec7b7b3a48d0bc7bacfe9b00b5   1691.499 Ether   2016-01-13 12:45:19 (4 days ago)
0xe8297cd6...   0x7eadf4211b54726ac5ff3fc2bfb22707b9a5aa04   0.994 Ether   2016-01-13 12:36:19 (4 days ago)
0xf5386723...   0x47687c5a214c55ec7b7b3a48d0bc7bacfe9b00b5   99.499 Ether   2016-01-13 12:25:17 (4 days ago)
0xd9441935...   0x3973dedc825a86f4b891bed509803966dafc3081   1.23152439 Ether   2016-01-13 11:10:33 (4 days ago)
0x2c895e98...   0x59362c485fd1ea5b6b5765ff3dbccd5bc870e59d   19.48012891 Ether   2016-01-13 10:35:30 (4 days ago)
0x47f1793f...   0x5ad64d2d1f72717d6e0e74f121ddaef9bfeb7e9a   3.979 Ether   2016-01-13 09:15:44 (4 days ago)
0xb1bacbd7...   0xa9db39bb644396200c1e9250af8daed79dc87d8a   2.81795663 Ether   2016-01-13 08:55:49 (4 days ago)
0x21e4e620...   0x5ad64d2d1f72717d6e0e74f121ddaef9bfeb7e9a   4.974 Ether   2016-01-13 08:45:24 (4 days ago)
0x313908e3...   0x5ad64d2d1f72717d6e0e74f121ddaef9bfeb7e9a   9.949 Ether   2016-01-13 08:25:17 (4 days ago)
0xb40ae315...   0x574176665f54976a87b099d2785cb4a7bafb8320   1.989 Ether   2016-01-13 08:20:19 (4 days ago)
0x4b18bbb3...   0x574176665f54976a87b099d2785cb4a7bafb8320   0.994 Ether   2016-01-13 08:05:56 (4 days ago)
0x7dc7ea66...   0x5ad64d2d1f72717d6e0e74f121ddaef9bfeb7e9a   0.994 Ether   2016-01-13 08:00:16 (4 days ago)
0xaad2fea6...   0x79eca66251e6c59448cac04e098b78f9ec8dbdd0   10.944 Ether   2016-01-13 05:20:21 (4 days ago)
0x1f2fe1dd...   0xd764b87409a96be9dab83fb1ad60cafcfd71b5fa   74.37348127 Ether   2016-01-13 05:15:18 (4 days ago)
0x726c1218...   0xd764b87409a96be9dab83fb1ad60cafcfd71b5fa   9.949 Ether   2016-01-13 05:05:27 (4 days ago)
0x4cfc8cb8...   0xede14b9dac26a26d3fe3513b3b160983e112f9d3   746.8162115 Ether   2016-01-13 05:00:55 (4 days ago)
0x6c285c2e...   0xd61294d6231340e6bdfbff7931edf3e5ba0d9a46   4.974 Ether   2016-01-13 05:00:36 (4 days ago)
0xa0cd1dbd...   0x0e4abc0dad303d11570a7b99bd9eb5f3130b4831   5.83356189 Ether   2016-01-13 04:20:44 (4 days ago)
0xd1f5e7cc...   0x4cc784d095e3f64064ea1631e04a1c47171d16fd   300.69840115 Ether   2016-01-13 04:20:37 (4 days ago)
0xbe434d2b...   0x2f3d8375c7b456d50fbd0dc557f5c6e9afddd6c1   101.27166997 Ether   2016-01-13 04:20:37 (4 days ago)
0xb3aae001...   0x2f3d8375c7b456d50fbd0dc557f5c6e9afddd6c1   4.974 Ether   2016-01-13 03:45:24 (4 days ago)
0xb784ae3b...   0x952a1edcbd91ba26207f1dff9af7b453d2708a33   10.48374602 Ether   2016-01-13 03:15:15 (4 days ago)
0x351ca835...   0x1c5e0c13e33204ffccea40a47419304bd2161cee   162.58875847 Ether   2016-01-13 03:05:32 (4 days ago)
0x3d4b7fbe...   0x528e82563380e23df39ee50789eb960d80916d24   0.994 Ether   2016-01-13 03:00:36 (4 days ago)
0x592929ec...   0xb1584925f3eeb86ca9c987cf5ecdce7ffb85ea5f   64.573505 Ether   2016-01-13 02:15:13 (4 days ago)
0x5413d4a2...   0x10153295e3e2b26c5fc850848dbbd8fbc232ac87   28.18567143 Ether   2016-01-13 02:01:03 (4 days ago)
0xdad6816b...   0x10153295e3e2b26c5fc850848dbbd8fbc232ac87   24.4163 Ether   2016-01-13 01:40:44 (4 days ago)
0x728a05d0...   0xf4d77829cfe6c25a1d85d8054febfbfa38c8efdb   83.71135328 Ether   2016-01-13 01:40:34 (4 days ago)
0x5acf2d3b...   0x809b0e4b5faad354c06779d973558111e9102bb5   3.4815 Ether   2016-01-13 01:20:18 (4 days ago)
0x1ca25712...   0xeb6bc8b8a256b4325695ebf07a0a701fa648a481   123.82931886 Ether   2016-01-13 01:16:09 (4 days ago)
0xb77606e4...   0xe879283fcd1916be9fa8d70c45d7c889fb228b19   9.008101809999999 Ether   2016-01-13 01:15:31 (4 days ago)
0x51753727...   0x809b0e4b5faad354c06779d973558111e9102bb5   5.50218641 Ether   2016-01-13 00:55:22 (4 days ago)
0x455ebf8b...   0x10153295e3e2b26c5fc850848dbbd8fbc232ac87   8.555999999999999 Ether   2016-01-13 00:50:30 (4 days ago)
0x4ac02c2e...   0x07da6c920e595d1697e6a29b78a3d1d08f7b3c56   64.80308452 Ether   2016-01-13 00:50:17 (4 days ago)
0xa0c62be2...   0xaf17a4ab5d6b10055fc1eb1bfaccbde69b83af76   582.40725809 Ether   2016-01-13 00:45:34 (4 days ago)
0x4c26ffec...   0x809b0e4b5faad354c06779d973558111e9102bb5   4.974 Ether   2016-01-13 00:35:17 (4 days ago)
0xcc3b6c3d...   0xe879283fcd1916be9fa8d70c45d7c889fb228b19   4.91522302 Ether   2016-01-13 00:25:15 (4 days ago)
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0x85ac743c...   0x006e383c12c4dda89583f4d5365d215ad35be831   243.98764527 Ether   2016-01-13 00:00:54 (4 days ago)
0x38816e93...   0x809b0e4b5faad354c06779d973558111e9102bb5   4.974 Ether   2016-01-13 00:00:54 (4 days ago)
0x870ffe0e...   0xe879283fcd1916be9fa8d70c45d7c889fb228b19   1.989 Ether   2016-01-13 00:00:17 (4 days ago)
0x412a393c...   0x7a461b0e600fc3b3936fadc4756579ff4f8ccf62   219.67870683 Ether   2016-01-12 23:45:31 (4 days ago)
0x5c0d5e48...   0xaf17a4ab5d6b10055fc1eb1bfaccbde69b83af76   3.43601077 Ether   2016-01-12 23:35:25 (4 days ago)
0xe6c1edf7...   0xd96b6f8ba4beb57e021a3f3637e683af6f8a4b87   1.69789414 Ether   2016-01-12 23:30:16 (4 days ago)
0x923f3dd2...   0x0c7b7249480b990a820ddc7d7f50a1949bca95ba   36.50720394 Ether   2016-01-12 23:30:16 (4 days ago)
0xb074f3c4...   0xbd4cea23c921899cdb765d248258c15b26507ffd   3.72243397 Ether   2016-01-12 23:25:41 (4 days ago)
0x8a285ef8...   0x0c7b7249480b990a820ddc7d7f50a1949bca95ba   23.74601671 Ether   2016-01-12 23:16:45 (4 days ago)
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0xc3887165...   0xf5d0a83dc40f4f00540d240242c6252c699eae3d   14.16112093 Ether   2016-01-12 23:10:32 (4 days ago)
0x1084cc6f...   0x646da559ab39fcb53ffe30ff57b1e32632c3380f   1.75896399 Ether   2016-01-12 23:00:18 (4 days ago)
0x5a7d015e...   0x0b43232a10224e856de23cc47c336b5bdc5eb736   49.749 Ether   2016-01-12 22:55:49 (4 days ago)
0xd12695a3...   0x006e383c12c4dda89583f4d5365d215ad35be831   93.57779807 Ether   2016-01-12 22:50:25 (4 days ago)
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0xda90ba99...   0x39ef05decf3e07e195144760d8ade58b77b985af   21.889 Ether   2016-01-12 22:40:47 (4 days ago)
0x4a1f06bf...   0x006e383c12c4dda89583f4d5365d215ad35be831   51.788893710000005 Ether   2016-01-12 22:35:35 (4 days ago)
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0x8e838b63...   0x0c7b7249480b990a820ddc7d7f50a1949bca95ba   23.52946713 Ether   2016-01-12 22:15:17 (4 days ago)
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0xcb9ce522...   0xf4d77829cfe6c25a1d85d8054febfbfa38c8efdb   85.34847571 Ether   2016-01-12 21:45:17 (4 days ago)
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0x74ea5a92...   0xca17d7c97e9326a591683a6509eb997f6277aa32   19.899 Ether   2016-01-12 21:20:45 (4 days ago)
0x6c2f196c...   0xca17d7c97e9326a591683a6509eb997f6277aa32   19.899 Ether   2016-01-12 21:15:14 (4 days ago)
0x2265a828...   0xca17d7c97e9326a591683a6509eb997f6277aa32   19.899 Ether   2016-01-12 21:10:13 (4 days ago)
0x8e0a2a2d...   0x6d167428040ee92d21cd5c7600a12504de512723   63.81947413999999 Ether   2016-01-12 21:05:16 (4 days ago)
0xbd5ceb21...   0xca17d7c97e9326a591683a6509eb997f6277aa32   19.899 Ether   2016-01-12 21:00:36 (4 days ago)
0x166404f8...   0x6d167428040ee92d21cd5c7600a12504de512723   49.749 Ether   2016-01-12 20:55:39 (4 days ago)
0x0de13784...   0xca17d7c97e9326a591683a6509eb997f6277aa32   19.899 Ether   2016-01-12 20:55:39 (4 days ago)
0xee8ebd22...   0xca17d7c97e9326a591683a6509eb997f6277aa32   19.899 Ether   2016-01-12 20:50:50 (4 days ago)
0xebd4e474...   0xf1a25a6514bc54f800bb33c0d6a062cf8a24672c   9.949 Ether   2016-01-12 20:50:50 (4 days ago)
0xbc3e3d30...   0xa6b87bcfc97e042d6e878ab37468d700bef38303   19.899 Ether   2016-01-12 20:45:43 (4 days ago)
© Etherchain 2015 | The Ethereum Blockchain Explorer |Contact us

[GoldSeal]

So when Big Vern goes to assemble his advisory board... what "leaders" are left in crypto who aren't under investigation, indicted, residing out of the country to avoid prosecution, or just broke and embarrassed? I mean seriously, who's going to sit at that table? Marshall Long? The BFL gang? Ravi from Cointerra? Can Karpeles send a proxy?

To whoever bet on a law enforcement raid in the next few days, I hope you're right.

I'd expect a raid.

[Hippie Tech]

Ok, so tell me, why didn't anyone noticed earlier Cryptsy was running an infected wallet?

@Mullick committed on Apr 23, 2015

https://github.com/Mullick/lucky7coin/commit/799b0b6b65a8fdd827d0d1406868d34a045ea779

It means Mullick is now complicit in the entire thing. Not only was their an infected wallet they never disclosed this to their public for the clients wallets nor as something naughty being Fincen registered right?

I don't think Mullicks ignorance will hold up. The guy ran ages ago... I think he realised sooner than the rest and the fact that he didn't report it means he allowed it to continue as well.

Yup.. poor ole dumbass Paul Vernon was PWN'd by one of his sockpuppets.

Thats one smart sock !

[Melech]

Look What i just FOUND! How can there be withdrawals going ON?

They might be processing withdrawals for the coins that weren't stolen?

[Melech]

So when Big Vern goes to assemble his advisory board... what "leaders" are left in crypto who aren't under investigation, indicted, residing out of the country to avoid prosecution, or just broke and embarrassed? I mean seriously, who's going to sit at that table? Marshall Long? The BFL gang? Ravi from Cointerra? Can Karpeles send a proxy?

To whoever bet on a law enforcement raid in the next few days, I hope you're right.

I'd expect a raid.

Raid where?

The Florida office is empty

Vern's last known location was China(?) several months ago

[bitcoinpete]

Is there any truth to the fact that they have enabled withdrawals and are processing some ?

[Spoetnik]

Nice..
https://bitcointalk.org/index.php?action=profile;u=93918

I have the same negative trust rating as BigVern
I guess the community has spoken.

And you wonder why i call crypto people idiots so damn much ?

pathetic

[Melech]

Since it seems appropriate...

Here is a video of "Paul Vernon" singing, "I'm on fire":
https://www.youtube.com/watch?v=6Wtz1Qam03w

[cashintor1]

Isn't this volume a bit too much for Bittrex - Total BTC Volume = 1917.0179 BTC ? Few days/weeks ago it was like 300-500 BTC constantly... Where did that come from? Cryptsy? Vern?

[cashintor1]

I like this song of Paul Vernon better - Song name - Kryptonite - https://www.youtube.com/watch?v=rWKrLhFNrSI

Any clues about names/faces ?







 

Since it seems appropriate...

Here is a video of "Paul Vernon" singing, "I'm on fire":
https://www.youtube.com/watch?v=6Wtz1Qam03w

[cashintor1]

Bingo! - rewind to 1:55 and pause then read the third bullet point of Paul Vernon's Presentation - https://www.youtube.com/watch?v=jdOEgAG8PLU

[bones261]

Isn't this volume a bit too much for Bittrex - Total BTC Volume = 1917.0179 BTC ? Few days/weeks ago it was like 300-500 BTC constantly... Where did that come from? Cryptsy? Vern?

Some of it came from Cryptsy, since traders are going to take their business elsewhere. Also, the recent price drop of BTC may have more to do with it. Volume is way up on Poloniex too.

[Melech]

I like this song of Paul Vernon better - Song name - Kryptonite - https://www.youtube.com/watch?v=rWKrLhFNrSI

Any clues about names/faces ?

"The names have been changed to protect the innocent" -Joe Friday

[Libertymind]

Since trading fees went to 0 there never came another payout from Paul's shares either.

I didn't use cryptsy, but what sense does it make to drop trading fees to 0% when you're trying to make good on insolvency? I would have thought that collecting trading fees would be your best hope of making up the shortfall.

0% trading fee, people deposit more coins to trade for free, charge instead % for withdrawal so people leave their coins on your platform.....sounds like the perfect plan if you're coming undone with not having the coins on your books.

Horus:
This is a really shitty situation. I understand people are upset and have every right to be. I admit, I drank the koolaid and when people told me things were alright, I believed them whole heartedly.