CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[thunderjet]

I would accept 10% withdrawals-fee and a daily Limit of $50, but for all users and no monthly limit.

Nobody would trade on exchange with 10 % withdrawal fee.

What Cryptsy can do?

1) gives full disclosure of their assets,

2) open withdrawals for unaffected coins,

3) reduce operational costs by shutting down of unprofitable LTC and XRP/altcoins market and leave 50 coins with best BTC volume in the last 6 months,

4) back trade fees as more profitable option,

4) BV find investors or put mortgage on his business and personal properties or sell unnecessary assets(or combine) to take loan enough to cover 50% debt ~ 5000 BTCs,

5) other 50% will be paid from 0,5% withdrawal fee which would be auto-deduct from debt to every user during theirs withdrawal and

6) from 33% of exchange income(trade fees),starting 3 months after reopening,so exchange will have enough time to recover.

'

Sounds great on paper, but of the volume that was there for the past year, how many of those users do you think would come back? That kinda changes everything.

yes who will continue to trade with this bastards? and stop begging for your money. it is yours and some big bird thinks he can help himself to it then there is only 1 way to deal with this.

Nobody begging for money.I personally lost very little,but what is your solution - bankruptcy ? If Cryptsy bankrupt nobody will get anything - 0000000000000000000 , BV maybe or maybe not will go to jail for 2-3 years and that is all.If he did it as you suggest,after prison he will be very rich man with 000000000000000 responsibility.

Why is wrong that users be paid 50% immediately ? Maybe you prefer to get 0% ? That is bullshit man.

Give better suggestion than yelling and cursing,because these things cant help people who lost money.We all cursed and yelled when it happened,but after that we have to see what to do next. Bankruptcy is way too easy solution for the mess BV created.

are you not the guy that kept telling us that the cryptsy cold wallet was intact.?
and what fucking bankrupt claim should we really entertain ? the man and his crew are insane . you are an adult you should know when the line is crossed. i don't have to draw your a picture like a child?

You obviously keep talking bullshit. What is your suggestion?  To everbody take 100% loss and let him get away so easy?? You are talking as his lawyer,because,it will be the best solution for him ,but not for users.

Yes, one girl from Russia and me found that wallet in wallet explorer and it looks like ordinary cold wallet of some exchange - long time dormant,directly connected with main wallet. I was also first who gave to the others informations about removing huge portions of BTCs from old hot wallet to Bitfinex,BTCC,AlphaBay market and Local Bitcoins, in time when all other users got in total no more than 5-6 BTCs daily.I have never seen that thief or thieves,left stolen money for so long in dormant status.In all other cases - BTER, Bitstamp,Poloniex ,hackers very soon after theft put BTCs in some of bitcoins mixers,but not in this case.If it is inner job,than bankruptcy is easiest way for BV to escape from any responsibility.

you need to read before you reply to peoples posts. like wtf are you talking about?when and were above did i make the suggestions you are claiming i did , are you mad ? and how nice of you to dodge the question i asked you so i will ask again in caps. ARE YOU NOT THE SAME PERSON THAT KEP REASURING US THAT CRYPTSY COLD WALLET WAS INTACT?..

I SUGGEST YOU DEMAND YOUR MONEY FROM THIS BASTARD AND NOT BEG FOR IT LIKE A LIL BITCH. SO NOBODY IN THE STATES IS EVEN TRACKING THIS MOFOS DOWN?  FUCK BANKRUPTSY DEMAND YOUR MONEY FROM THE THEIVE AND BE WILLING TO TAKE ACTIONS FOR YOUR MONEY FUCK THE BULLSHIT

For the first and last time - I DID NOT REASSURE ANYBODY THAT IS SAFE TO STAY MONEY AT CRYPTSY - ONLY I WAS DOING IS TO HELP PEOPLE GIVING INFOS IN THE CHAT HOW MUCH BTC CRYPTSY SENT EVERY DAY TO THE USERS,WHAT WERE BIGGEST TRANSFERS(THROUGH MONITORING CRYPTSY WALLETS ON WALLET EXPLORER) AND DID BTC ARE MOVING FROM THAT EVERYBODY BELIEVED WAS CRYPTSY COLD WALLET.I CANT BELIEVE THAT TALKING OPENLY HOW LITTLE CRYPTSY SENT BTC EVERY DAY WAS HELPFUL FOR CRYPTSY IN ANY WAY.

I WAS FIRST WHO SPOKE ABOUT SUSPICIOUS TRANSFER FROM CRYPTSY OLD WALLET TO BITFINEX,BTCC,ALPHABAY AND LOCAL BITCOINS AND GOT WEEK BAN FROM JSHOCK FOR THAT.I WAS FIRST THAT GIVES INFO ABOUT BTC THEFT HAPPENED 5 HOURS EARLIER BEFORE MAIN HACK - WHEN THEIF TOOK 500 BTC IN 5X100 TRANSFERS.YOU ALL USED MINE FINDINGS AND DATA AND MANY PEOPLE POST IT HERE.I FOUND CRYPTSY DOGE COLD WALLET AND POST SUSPICIOS TRANSFERS FROM IT:

I monitored Cryptsy Bitcoin and other alts wallets through blockchain analysis and it is pretty hard to me to believe that theft is caused by trojan virus infiltration to cold wallet.

First of all Cryptsy cold wallet then was not cold at all,otherwise how virus jumped to it from server?

Blockchain analysis gave me information that theft began not at 13:37:26 as posted on Cryptsy blog,but 5 hours earlier,through attack on hot wallet.Incident occured at 08:27:48,when someone took 500 BTC through 5 txs of 100 BTC each - https://www.walletexplorer.com/wallet/Cryptsy.com-old?page=1202
These txs were:

https://www.walletexplorer.com/txid/e68f52a38f58e71b951a08650e20aea3f62f7331a3f548e99181f6dbf1cc1d51
https://www.walletexplorer.com/txid/48721871b11f716688fcf80a91a5c7586a1dddee83d90b84b564f3f29e11504c
https://www.walletexplorer.com/txid/790aa7ec2678552c88cf95110c0df4bcc16a72b8f7e6f331292b977cc6e481df
https://www.walletexplorer.com/txid/e8bb46bc6ea5f4580dd2b73f5d6a116e9023c84eb7c0fd4f34bcef3aca606fad
https://www.walletexplorer.com/txid/f3998a7e2e8b451106327d2c6e7f73ba58c2fd54b4bb3595b18a2d76e7d15f44

Cryptsy employees did not notice that their hot wallet was robbed for 5 hours,when big hack happenned to cold wallet.

One thing is interesting - these 500 BTC did not move at all after it - just like 1000s after big hack.In all BTC hacks till now,hackers never wait more than few hours to put stolen BTC in to the mixer.Except in this case.


Also I found Cryptsy DASH and DOGE main wallets.Cryptsy said that they did not hacked,but what happenned with coins in them.In DASH wallet was 456K DASH.Wallet was formed on 27.July.2014:

https://bitinfocharts.com/darkcoin/tx/ba798890d98936115001f69333956b558a4856c162516cb3ab46a6455de7a1eb

It is not hacked and from one of his big direct branches came 8433 DASH sent from Cryptsy on 5th.Oct.2015 to big DASH owner known as Otoh(https://i.imgur.com/Cb2ygx7.png):

https://bchain.info/DASH/tx/964716df9d475449a7abae56a57536d46bf466a1407a81e7d5ff5457d87827d9, pay attention on address Xqi7sWthYKFPCK3KHcKq8BqY9vMcWy4r3t  probably biggest direct branch from main DASH wallet


DOGE main wallet was also formed on the 27.July.2014 - https://bitinfocharts.com/dogecoin/address/DN27P1saQQ1fYesKP1LHT5MdSXBpgqka85  - there was 9.5 billions of DOGE in it

On 5th.Aug 2014,DOGE was removed from that wallet in multiple 1 billion txs(like BTC in the hack,but as we know DOGE wasnt hacked) :

https://bitinfocharts.com/dogecoin/tx/ed788feeef777fedc20fa761e4ae40aa0be9da05a3fd312d5347c5bddad50941
https://bitinfocharts.com/dogecoin/tx/b84e8b04cdd002d029f630bf4aa12814a2a9c33e0b2d58686cea7544d91b8180
https://bitinfocharts.com/dogecoin/tx/b36b8e35d6dd4a738d5dc1059b9e9d9f1f7a7be063a77556d607778c77cef34e
https://bitinfocharts.com/dogecoin/tx/ea1da0bea33f2f7a34ddaeb922b822c2faf43659ac2f4de15386bfc17f4c27c1
https://bitinfocharts.com/dogecoin/tx/5c4a79c212d1ab5f8da3f4939ebf7ea0d8244fc3b9ddfd3db1b3de018757b44c
https://bitinfocharts.com/dogecoin/tx/27250d554170ab262924ab812295b11610158b52b17122b37b7877b99fc50db6
https://bitinfocharts.com/dogecoin/tx/1b2ef19cd8d61cbc9706acfed594f2894f3653a52fa37e418fc8d4087ca4ad97
https://bitinfocharts.com/dogecoin/tx/6946e22733fd1565416fae48b33442a924ee1efaa39d204947f44ceba7c832c0
https://bitinfocharts.com/dogecoin/tx/412433cad0ec9348984f33ab3088850acaf439d69262082688170738deff016a
https://bitinfocharts.com/dogecoin/tx/71dd761230463b85ca5c9d780ff30feda415ce34c3a81b03e1568e5e31be9dfa


Plus this withdrawal taken place after Cryptsy lockdown wallets - https://www.walletexplorer.com/txid/85a5d1dfb7fd4589cf43321f65a9ed300e994b4e156653063a1c5912f908c18b


So there are a lot of mystery what is really happened with Cryptsy wallets

I never beg anybody in mine life and I certainly will not beg Cryptsy too.You said demand your money from thieves and took action - what action?People took "action" on Gox and Mintpal, and get 00000 money.

Mine suggestion was that users do not allow Cryptsy to bankrupt and get nothing from it like in previous cases,but to put pressure on BV to continue work and pay 50% of debt immediately by mortgaging or selling his business and private assets and letting people to withdraw unaffecting coins right now.I cant see any other viable option for people get some money.If you can give something better option,post it I will support you.

[1714968901]

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[DefendKebab]

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

If you look at transactions you could see most coins are dumped on cryptsy, that doesnt make sense, crypsy could have seen easy they where stolen from cryptsy wallet.

[Gleb Gamow]

Does anyone have evidence that the story posted on the cryptsy blog might be true? Or just an out to run away with the coins?

I find it very hard to believe that if the coins were stolen from someone outside the company, that they wouldn't have been moved or sold by now. At least SOME of them.

I find it suspicious that they have not posted links to the other stolen altcoins yet...

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

To Recap:

Over ten million dollars worth of bitcoins and various altcoins are stolen off Cryptsy.
Paul Vernon doesn't call the police.
The bitcoins have yet to move since the theft.
The litecoins have been moved and perhaps now untraceable.
A quantity of DASH was one of the altcoins stolen.
Paul Vernon and his Cryptsy security team would be watching for any movements of coins.
The stolen DASH coins are traded on Cryptsy.
Paul Vernon wants our help to track the thief, but he has better data at his disposal than us to accomplish said feat for a 1000 BTC reward with that money coming from those he already stolen from, echoing the 99.9% of the people here believe that Paul's the culprit.

[Gleb Gamow]

I WAS FIRST WHO SPOKE ABOUT SUSPICIOUS TRANSFER FROM CRYPTSY OLD WALLET TO BITFINEX,BTCC,ALPHABAY AND LOCAL BITCOINS AND GOT WEEK BAN FROM JSHOCK FOR THAT.I WAS FIRST THAT GIVES INFO ABOUT BTC THEFT HAPPENED 5 HOURS EARLIER BEFORE MAIN HACK - WHEN THEIF TOOK 500 BTC IN 5X100 TRANSFERS.YOU ALL USED MINE FINDINGS AND DATA AND MANY PEOPLE POST IT HERE.I FOUND CRYPTSY DOGE COLD WALLET AND POST SUSPICIOS TRANSFERS FROM IT:

Hey, thunderjet, is your 500 BTC finding and my 500 BTC finding (5X100 on July 29, 2014) the same? I found my independently of your research if it's the same otherwise I would've gave you credit for the find.

If different, please point me to your finding so that I can do some exploratory on my own. Thanks, bud.

EDIT: Just scrolled down and see that it is.

Somehow I missed your post and posted the exact same findings the next day (yesterday): https://bitcointalk.org/index.php?topic=1173703.msg13574270;topicseen#msg13574270

To be clear, thunderjet, my research was independent of yours and would've gladly given you credit for your find.

Apologies for any misunderstandings.

[Melech]

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

If you look at transactions you could see most coins are dumped on cryptsy, that doesnt make sense, crypsy could have seen easy they where stolen from cryptsy wallet.

Kinda points to it being an inside job, right?

Or complete incompetence...

How could you let someone steal $2mil worth of Dash, then sell it on your own website?

The trail is too obvious for them to have missed it... Wouldn't they be looking very closely at anyone depositing 100k+ Dash? Over 200k went to the same address...

Then you realize Vern still hasn't confirmed this Dash was stolen (because if he does, he's fucked)

[TXSteve]

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

If you look at transactions you could see most coins are dumped on cryptsy, that doesnt make sense, crypsy could have seen easy they where stolen from cryptsy wallet.

Kinda points to it being an inside job, right?

Or complete incompetence...

How could you let someone steal $2mil worth of Dash, then sell it on your own website?

The trail is too obvious for them to have missed it... Wouldn't they be looking very closely at anyone depositing 100k+ Dash? Over 200k went to the same address...

I haven't checked the timing on this, but here's a quick thought:
Maybe that had a lot to do with implementing the new Tier system?? They might have been trying to identify who was selling the stolen coins and get the acct locked down

and maybe the Tier system had more to do with cryptsy downfall than the coinfire article, as no more profits from money laundering??

[eddie13]

I was watching thunderjet's daily updates on the status of the wallets for days/weeks. I was there and know he did bring up some suspicious stuff and ask the mods tough questions. Every evening he was there to tell us how much BTC the users got in WDs from cryptsy and found large suspicious transactions.

I was not there for his ban or any of that but from what I recall his position on the subject the whole time was that the priv keys to the cold wallets were lost for some reason. Not really calling cryptsy a scam or defending it saying it was ok, but he definitely pointed out and kept us updated on how horrible the situation was with the wallets.

The information that I got from thunderjet in the troll box was one of my main indicators as to what to think about the whole situation for my trading decisions which thankfully led me to get all of my coin out before it goxxed.. Thank you TJet..

I guess what I am saying is that I vouch for this guy's word and believe he has been instrumental in keeping track of the FACTS of the situation as it unfolded among all the wild speculation.

Also if you guys are serious about tracking all this blockchain stuff I would work with this guy as much as possible as he has been on the case providing us good intel for a long time already.

[rascal777]

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

If you look at transactions you could see most coins are dumped on cryptsy, that doesnt make sense, crypsy could have seen easy they where stolen from cryptsy wallet.

Kinda points to it being an inside job, right?

Or complete incompetence...

How could you let someone steal $2mil worth of Dash, then sell it on your own website?

The trail is too obvious for them to have missed it... Wouldn't they be looking very closely at anyone depositing 100k+ Dash? Over 200k went to the same address...

I haven't checked the timing on this, but here's a quick thought:
Maybe that had a lot to do with implementing the new Tier system?? They might have been trying to identify who was selling the stolen coins and get the acct locked down

Doubt it.  The tier system was likely designed to prevent people from withdrawing too much at once, trying to making it less obvious that they had solvency issues.

At this point, I'd like to See Vern do full disclosure, and stop hiding what he did with the other coins...  i.e. Selling Users Dash and Dogecoin and other coins to get some operating funds.   He should give a full listing of transactions he did, so the community doesn't waste their time going down that rabbit hole...

A scenario just as bad as the Stolen Coins scenario, is one where Cryptsy was trying to put coins in a cold wallet, and the process went bad, loosing all coins and private key information...

[LordCoder]

I have a feeling that the next exchange will be Bittrex... A really bad feeling.

[peonminer]

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

If you look at transactions you could see most coins are dumped on cryptsy, that doesnt make sense, crypsy could have seen easy they where stolen from cryptsy wallet.

How many times do we have to tell you, it was all an inside job done by a retarded pedophile.

Spotted BigVern's latest blog post!~

Here's a screencap:

[CoinFriend]

Okay, it seems cryptsy has lost the majority of user funds on end of July 2014.

( In my opinion, it could be a simple mistake by managing the btc cold wallet. ... splitting the amounts to different addresses and losing the private keys... After recognizing this mistake they started to move and sell altcoins to recover the btc wallet. Who knows what really happened... but it would explain why they haven't called the police and also why the "stolen" BTC are untouched.)

Now next thing would be, they need some kind of strategy, that makes that user don't try to withdraw the majority of funds, to keep up the normal operation of the site.

I assume that's why cryptsy implemented a "Look-Box feature" and released it three months later, in the beginning of November 2014.

Let's see what they wrote about the "Cryptsy Lockbox":

Cryptsy Lockbox & Improved Currency Converter Tool

Greetings Cryptsy Users,

Two new features have been released today that I wanted to tell you about.

Cryptsy Lockbox:

Cryptsy has always tried to be the leader in developing a safe and secure environment for trading.   Today we have released Cryptsy Lockbox.   Cryptsy lockbox allows you to store funds you hold on your account more securely.   When you move funds to a lockbox, those coins will not be availalbe for trade or withdrawal.   The lockbox is a time-lock system, you can set the time lock for 1 hour, 6 hours, 12 hours, or 24 hours.   When a lockbox release request is made and approved from one of the email accounts set for the lockbox, the system will notify you every hour of a pending release via email and optional SMS alerts.   If somehow you find you didn’t make the request, you can cancel it by clicking a link in the email.  Once the allotted time has passed since the request was approved, you lockbox funds will be restored to your Cryptsy balance and will be available for trade or withdrawal.

You can access the lockbox from your Cryptsy balances page.

Who should use lockbox:

- Users to are not going to be trading for awhile due to vacation or another reason should store their funds in the lockbox.   If you don’t plan on trading or withdrawing those coins for awhile, then store them.

- Users who store large amounts of coin on their local computer.   The majority of hacks that we have seen in the past have occurred on the end users computer.   If your computer is compromised, stolen, or damaged your local wallets are at risk.   Cryptsy takes great measures to ensure our wallets and keys are stored safe and securely and make backups of our wallets to very secure locations often.

- Services who hold funds in their own wallets.   If you run a service that stores funds in your own wallets, and do not want to worry about the security of your wallets, then you can store them into a Cryptsy Lockbox for safekeeping.

New Improved Currency Converter:

The new currency converter is back and better than ever.   You can find the currency converter under the tools menu at Cryptsy.  Using the converter you can convert any currency into any other currency, including USD if you are verified.   You can specify either the sending amount and we will convert to show you the receiving amount, or you can specify the receiving amount and we will show you how much to send.

Soon we will be enhancing the converter tool even more by allowing you to send funds to an address to complete the conversion process, as well as providing these tools via the API.   We feel this tool will be essential in the creation of merchant payment tools that use any currency traded at Cryptsy.

Happy Trading!

Paul Vernon
“BigVern”

    Nov 7th, 2014

source: http://blog.cryptsy.com/post/102008854192/cryptsy-lockbox-improved-currency-converter-tool


So! Everone should use the look-box, it's much safer that the own wallet!

In other words: "do not withdraw your coins".

[LordCoder]

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

If you look at transactions you could see most coins are dumped on cryptsy, that doesnt make sense, crypsy could have seen easy they where stolen from cryptsy wallet.

How many times do we have to tell you, it was all an inside job done by a retarded pedophile.

Spotted BigVern's latest blog post!~

Here's a screencap:

Would you mind explaining me a summary of what's happening about the pedophile stuff? If you want via PM it's okay.

[peonminer]

Vern (supposedly) got ejected from the service for relations with an underage individual. We have proceeded to (theoretically) shame him to the full extent. Gleb has given recaps further back in the thread with links. Vern responded to a complaint and denied it all on some website.

[thunderjet]

I WAS FIRST WHO SPOKE ABOUT SUSPICIOUS TRANSFER FROM CRYPTSY OLD WALLET TO BITFINEX,BTCC,ALPHABAY AND LOCAL BITCOINS AND GOT WEEK BAN FROM JSHOCK FOR THAT.I WAS FIRST THAT GIVES INFO ABOUT BTC THEFT HAPPENED 5 HOURS EARLIER BEFORE MAIN HACK - WHEN THEIF TOOK 500 BTC IN 5X100 TRANSFERS.YOU ALL USED MINE FINDINGS AND DATA AND MANY PEOPLE POST IT HERE.I FOUND CRYPTSY DOGE COLD WALLET AND POST SUSPICIOS TRANSFERS FROM IT:

Hey, thunderjet, is your 500 BTC finding and my 500 BTC finding (5X100 on July 29, 2014) the same? I found my independently of your research if it's the same otherwise I would've gave you credit for the find.

If different, please point me to your finding so that I can do some exploratory on my own. Thanks, bud.

EDIT: Just scrolled down and see that it is.

Somehow I missed your post and posted the exact same findings the next day (yesterday): https://bitcointalk.org/index.php?topic=1173703.msg13574270;topicseen#msg13574270

To be clear, thunderjet, my research was independent of yours and would've gladly given you credit for your find.

Apologies for any misunderstandings.

Gleb, it does not really matter who find it first.I post it because I was furious on that guy for accusing me on something I did not do it.

I traced LTC theft and Iam posting intel I found about it.I hope so that others members can help to find as much facts as it possible.



I analized LTC theft and after thorough analysis I trace back stolen LTC right to Huobi cold wallets.

Huobi and BitVc are using same addresses for BTC an LTC hot/cold wallets.Stolen LTC went directly to Huobi 2 LTC cold wallet - 3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM .

https://www.blockseer.com/addresses/3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM

Hackers transactions also led to two other Huobi LTC cold wallets(Huobi and BitVc are using same addresses for BTC an LTC hot wallets):

3KBUuGko4H5ke7EVsq9B7PLK1c5Askdd7y - Huobi cold wallet
https://www.blockseer.com/addresses/3KBUuGko4H5ke7EVsq9B7PLK1c5Askdd7y

3AGcNMjFf6fSxe31gH9YQZj3fSUh2UxkaB - BitVC futures exchange LTC cold wallet owned by Huobi
https://www.walletexplorer.com/wallet/aad6044d684735d2?from_address=3AGcNMjFf6fSxe31gH9YQZj3fSUh2UxkaB

I can positively identified at least one user deposit address at Huobi 1 cold wallet(3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM) - it is  LW22iVURAEPzqas21iyuv8EXTYJgZugCdT .

On this address hacker deposited LTC on Huobi and because he deposited 10k LTC or more, Huobi directly put it in one of theirs cold wallets - 3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM

These direct transactions were:

https://bitinfocharts.com/litecoin/tx/ddf5891e02b629fbd21b0ad3996404c3569c7ab33398ff276fdf6aee8776cd45
https://bitinfocharts.com/litecoin/tx/289275b45a0a83884b4e105315b543aa123a97e3038a23798bb82c6c379c0038
https://bitinfocharts.com/litecoin/tx/69ee73e7cd604968efa3170f14c8b440561fd8c1afd9d54baef8f50891d24f8c
https://bitinfocharts.com/litecoin/tx/a797ffdadf9591235bba4d83f999ce8d1443321f81411a099838dbb53cf72bad
https://bitinfocharts.com/litecoin/tx/db817b7dee3bcd55fb1e8bf01acac96b476e8b306dbaeb64ae7f1ef3d8e76932
https://bitinfocharts.com/litecoin/tx/859fa869de1b66d3704f0971497e5b7aa9798a7a2a9e0093661096100563cca5
https://bitinfocharts.com/litecoin/tx/d6e43b94e7ca8deb3590259605a28764658c09e721783f459d75a00c4a4ca3a0


Other part of stolen LTC went to probably BTC-e LTC hot wallet - LXA3i9eEAVDbgDqkThCa4D6BUJ3SEULkEr

https://bitinfocharts.com/litecoin/tx/dd05dc0a25cfa763959465f1d8a95921a28b63df0426f43b75cfc9f81aedc348

This is hacker deposit address on BTC-e,after LTC went directly to above hot wallet : LY13Z54QKwyAnuwKfYwKFhW98qa6ihsfYy


That address of exchange hot wallet on which hacker sent some LTC - LXA3i9eEAVDbgDqkThCa4D6BUJ3SEULkEr ,auto sent big sums of deposited LTC to cold wallet - LTpYZG19YmfvY2bBDYtCKpunVRw7nVgRHW with 1.855 millions of LTC inside

 http://ltc.blockr.io/tx/info/464c3f896b9250120ffcc2ae0bae28723457d2993d454f30ded6fff86f11b608


This address -  LTpYZG19YmfvY2bBDYtCKpunVRw7nVgRHW  was formed on 13.Oct 2012,when only BTC-e operated as big LTC exchange,so I beleve it is theirs cold wallet.

http://ltc.blockr.io/address/info/LTpYZG19YmfvY2bBDYtCKpunVRw7nVgRHW

[Gleb Gamow]

I was watching thunderjet's daily updates on the status of the wallets for days/weeks. I was there and know he did bring up some suspicious stuff and ask the mods tough questions. Every evening he was there to tell us how much BTC the users got in WDs from cryptsy and found large suspicious transactions.

I was not there for his ban or any of that but from what I recall his position on the subject the whole time was that the priv keys to the cold wallets were lost for some reason. Not really calling cryptsy a scam or defending it saying it was ok, but he definitely pointed out and kept us updated on how horrible the situation was with the wallets.

The information that I got from thunderjet in the troll box was one of my main indicators as to what to think about the whole situation for my trading decisions which thankfully led me to get all of my coin out before it goxxed.. Thank you TJet..

I guess what I am saying is that I vouch for this guy's word and believe he has been instrumental in keeping track of the FACTS of the situation as it unfolded among all the wild speculation.

Also if you guys are serious about tracking all this blockchain stuff I would work with this guy as much as possible as he has been on the case providing us good intel for a long time already.

+1

[DrxGxr]

Does anyone have evidence that the story posted on the cryptsy blog might be true? Or just an out to run away with the coins?

I find it very hard to believe that if the coins were stolen from someone outside the company, that they wouldn't have been moved or sold by now. At least SOME of them.

I find it suspicious that they have not posted links to the other stolen altcoins yet...

I'm willing to bet that the stolen Dash trail leads directly to someone who works/worked at Cryptsy:
https://chainz.cryptoid.info/dash/tx.dws?1120889.htm

You can click on the "Redeemed in" hash of the largest output and follow the trail as he sells the Dash on Cryptsy 5-10k at a time over several months (and watch the Dash price plummet shortly after each selling session)

Yes They sold off all the Dash and Eth and other coins with value to make up for the BTC / LTC losses at least that's what I read in the story their trying to sell.
Losing all that Btc Ltc If that's what happend Is very sloppy but not criminal If it was actually stolen from them.
But selling off those other currencys that don't belong to you That's criminal.
I hope Bigvern gets a big cellmate I'm sure we can hold a collection to make sure that his cellmate gets a never ending supply of Viagra.

i will donate to that viagra fund for sure.

[peonminer]

Meanwhile at the Paycoin thread . . .

Spotted Homero at his New Year's celebration!

[DrxGxr]

I WAS FIRST WHO SPOKE ABOUT SUSPICIOUS TRANSFER FROM CRYPTSY OLD WALLET TO BITFINEX,BTCC,ALPHABAY AND LOCAL BITCOINS AND GOT WEEK BAN FROM JSHOCK FOR THAT.I WAS FIRST THAT GIVES INFO ABOUT BTC THEFT HAPPENED 5 HOURS EARLIER BEFORE MAIN HACK - WHEN THEIF TOOK 500 BTC IN 5X100 TRANSFERS.YOU ALL USED MINE FINDINGS AND DATA AND MANY PEOPLE POST IT HERE.I FOUND CRYPTSY DOGE COLD WALLET AND POST SUSPICIOS TRANSFERS FROM IT:

Hey, thunderjet, is your 500 BTC finding and my 500 BTC finding (5X100 on July 29, 2014) the same? I found my independently of your research if it's the same otherwise I would've gave you credit for the find.

If different, please point me to your finding so that I can do some exploratory on my own. Thanks, bud.

EDIT: Just scrolled down and see that it is.

Somehow I missed your post and posted the exact same findings the next day (yesterday): https://bitcointalk.org/index.php?topic=1173703.msg13574270;topicseen#msg13574270

To be clear, thunderjet, my research was independent of yours and would've gladly given you credit for your find.

Apologies for any misunderstandings.

well done bro i think you just misunderstood what i wrote earlier . and had me thinking you were faking to us all along in the cryptsy chat. but i see now you are still the guy i original thought you were keep it up mate.
Gleb, it does not really matter who find it first.I post it because I was furious on that guy for accusing me on something I did not do it.

I traced LTC theft and Iam posting intel I found about it.I hope so that others members can help to find as much facts as it possible.



I analized LTC theft and after thorough analysis I trace back stolen LTC right to Huobi cold wallets.

Huobi and BitVc are using same addresses for BTC an LTC hot/cold wallets.Stolen LTC went directly to Huobi 2 LTC cold wallet - 3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM .

https://www.blockseer.com/addresses/3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM

Hackers transactions also led to two other Huobi LTC cold wallets(Huobi and BitVc are using same addresses for BTC an LTC hot wallets):

3KBUuGko4H5ke7EVsq9B7PLK1c5Askdd7y - Huobi cold wallet
https://www.blockseer.com/addresses/3KBUuGko4H5ke7EVsq9B7PLK1c5Askdd7y

3AGcNMjFf6fSxe31gH9YQZj3fSUh2UxkaB - BitVC futures exchange LTC cold wallet owned by Huobi
https://www.walletexplorer.com/wallet/aad6044d684735d2?from_address=3AGcNMjFf6fSxe31gH9YQZj3fSUh2UxkaB

I can positively identified at least one user deposit address at Huobi 1 cold wallet(3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM) - it is  LW22iVURAEPzqas21iyuv8EXTYJgZugCdT .

On this address hacker deposited LTC on Huobi and because he deposited 10k LTC or more, Huobi directly put it in one of theirs cold wallets - 3KgtbGgaX2ngstNpvyv7LwpHSweVeqGbpM

These direct transactions were:

https://bitinfocharts.com/litecoin/tx/ddf5891e02b629fbd21b0ad3996404c3569c7ab33398ff276fdf6aee8776cd45
https://bitinfocharts.com/litecoin/tx/289275b45a0a83884b4e105315b543aa123a97e3038a23798bb82c6c379c0038
https://bitinfocharts.com/litecoin/tx/69ee73e7cd604968efa3170f14c8b440561fd8c1afd9d54baef8f50891d24f8c
https://bitinfocharts.com/litecoin/tx/a797ffdadf9591235bba4d83f999ce8d1443321f81411a099838dbb53cf72bad
https://bitinfocharts.com/litecoin/tx/db817b7dee3bcd55fb1e8bf01acac96b476e8b306dbaeb64ae7f1ef3d8e76932
https://bitinfocharts.com/litecoin/tx/859fa869de1b66d3704f0971497e5b7aa9798a7a2a9e0093661096100563cca5
https://bitinfocharts.com/litecoin/tx/d6e43b94e7ca8deb3590259605a28764658c09e721783f459d75a00c4a4ca3a0


Other part of stolen LTC went to probably BTC-e LTC hot wallet - LXA3i9eEAVDbgDqkThCa4D6BUJ3SEULkEr

https://bitinfocharts.com/litecoin/tx/dd05dc0a25cfa763959465f1d8a95921a28b63df0426f43b75cfc9f81aedc348

This is hacker deposit address on BTC-e,after LTC went directly to above hot wallet : LY13Z54QKwyAnuwKfYwKFhW98qa6ihsfYy


That address of exchange hot wallet on which hacker sent some LTC - LXA3i9eEAVDbgDqkThCa4D6BUJ3SEULkEr ,auto sent big sums of deposited LTC to cold wallet - LTpYZG19YmfvY2bBDYtCKpunVRw7nVgRHW with 1.855 millions of LTC inside

 http://ltc.blockr.io/tx/info/464c3f896b9250120ffcc2ae0bae28723457d2993d454f30ded6fff86f11b608


This address -  LTpYZG19YmfvY2bBDYtCKpunVRw7nVgRHW  was formed on 13.Oct 2012,when only BTC-e operated as big LTC exchange,so I beleve it is theirs cold wallet.

http://ltc.blockr.io/address/info/LTpYZG19YmfvY2bBDYtCKpunVRw7nVgRHW

[DrxGxr]

for Thunderjet.  well done bro i think you just misunderstood what i wrote earlier . and had me thinking you were faking to us all along in the cryptsy chat. but i see now you are still the guy i original thought you were keep it up mate.

[Gleb Gamow]

Okay, it seems cryptsy has lost the majority of user funds on end of July 2014.

( In my opinion, it could be a simple mistake by managing the btc cold wallet. ... splitting the amounts to different addresses and losing the private keys... After recognizing this mistake they started to move and sell altcoins to recover the btc wallet. Who knows what really happened... but it would explain why they haven't called the police and also why the "stolen" BTC are untouched.)

Now next thing would be, they need some kind of strategy, that makes that user don't try to withdraw the majority of funds, to keep up the normal operation of the site.

I assume that's why cryptsy implemented a "Look-Box feature" and released it three months later, in the beginning of November 2014.

Let's see what they wrote about the "Cryptsy Lockbox":

Cryptsy Lockbox & Improved Currency Converter Tool

Greetings Cryptsy Users,

Two new features have been released today that I wanted to tell you about.

Cryptsy Lockbox:

Cryptsy has always tried to be the leader in developing a safe and secure environment for trading.   Today we have released Cryptsy Lockbox.   Cryptsy lockbox allows you to store funds you hold on your account more securely.   When you move funds to a lockbox, those coins will not be availalbe for trade or withdrawal.   The lockbox is a time-lock system, you can set the time lock for 1 hour, 6 hours, 12 hours, or 24 hours.   When a lockbox release request is made and approved from one of the email accounts set for the lockbox, the system will notify you every hour of a pending release via email and optional SMS alerts.   If somehow you find you didn’t make the request, you can cancel it by clicking a link in the email.  Once the allotted time has passed since the request was approved, you lockbox funds will be restored to your Cryptsy balance and will be available for trade or withdrawal.

You can access the lockbox from your Cryptsy balances page.

Who should use lockbox:

- Users to are not going to be trading for awhile due to vacation or another reason should store their funds in the lockbox.   If you don’t plan on trading or withdrawing those coins for awhile, then store them.

- Users who store large amounts of coin on their local computer.   The majority of hacks that we have seen in the past have occurred on the end users computer.   If your computer is compromised, stolen, or damaged your local wallets are at risk.   Cryptsy takes great measures to ensure our wallets and keys are stored safe and securely and make backups of our wallets to very secure locations often.

- Services who hold funds in their own wallets.   If you run a service that stores funds in your own wallets, and do not want to worry about the security of your wallets, then you can store them into a Cryptsy Lockbox for safekeeping.

New Improved Currency Converter:

The new currency converter is back and better than ever.   You can find the currency converter under the tools menu at Cryptsy.  Using the converter you can convert any currency into any other currency, including USD if you are verified.   You can specify either the sending amount and we will convert to show you the receiving amount, or you can specify the receiving amount and we will show you how much to send.

Soon we will be enhancing the converter tool even more by allowing you to send funds to an address to complete the conversion process, as well as providing these tools via the API.   We feel this tool will be essential in the creation of merchant payment tools that use any currency traded at Cryptsy.

Happy Trading!

Paul Vernon
“BigVern”

    Nov 7th, 2014

source: http://blog.cryptsy.com/post/102008854192/cryptsy-lockbox-improved-currency-converter-tool


So! Everone should use the look-box, it's much safer that the own wallet!

In other words: "do not withdraw your coins".

Exactly how was the lock-box more secure than Cryptsy's practice?

User: I wish to withdraw...
Cryptsy: Denied!
User: I wish to withdraw a smaller...
Cryptsy: Denied!
User: I wish to withdraw an even smaller...
Cryptsy: Denied and banned! Fractional withdraws from our fractional-reserve platform is a banning offense. When you're willing to play nice, please come back to Cryptsy where your coins are fully secure, proof being that even our thief's coins have been locked in place for a year and a half until a secure time manifests itself to facilitate a move.