CRYPTSY stopping withdraw locking accounts without notifying users! Class Action

[thundertoe]

Has a verifiable class action suit actually been started to this point, be it with the Silver Law Group or another firm?

http://silverlaw.com/blog/silver-law-group-files-class-action-lawsuit-against-cryptsy-and-its-principal-paul-big-vern-vernon/

mentioned here?

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

"Plaintiff, on December 27, 2015, deposited 84,000,000 Dodge Coin (a commonly used cryptocurrency) to fund his CRYPTSY account. The value of that deposit, according to CRYPTSY, was approximately 33.6 BTC ($14,100.00 USD)," the filing states.

According to the filing, the plaintiff is seeking restitution and damages for an unspecified amount, as well as legal fees.



..ok now what is the deal they are offering for the rest that agree to sign on?  anyone knowledgeable been able to go over the class action paperwork? i hear horror stories of class action suits where lawyers take almost all of the cake and whats left is crumbs

[craslovell]

Has a verifiable class action suit actually been started to this point, be it with the Silver Law Group or another firm?

http://silverlaw.com/blog/silver-law-group-files-class-action-lawsuit-against-cryptsy-and-its-principal-paul-big-vern-vernon/

mentioned here?

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

"Plaintiff, on December 27, 2015, deposited 84,000,000 Dodge Coin (a commonly used cryptocurrency) to fund his CRYPTSY account. The value of that deposit, according to CRYPTSY, was approximately 33.6 BTC ($14,100.00 USD)," the filing states.

According to the filing, the plaintiff is seeking restitution and damages for an unspecified amount, as well as legal fees.



..ok now what is the deal they are offering for the rest that agree to sign on?  anyone knowledgeable been able to go over the class action paperwork? i hear horror stories of class action suits where lawyers take almost all of the cake and whats left is crumbs

Thanks, I was being a little lazy.. Thats an excellent question. Not much point in signing on if there's nothing to be repaid to other users. Though you could argue the satisfaction of putting the cryptsy gang behind bars is worth something of its own...

[garmin]

Looks like most of the Vote BTC is gone also. Paste of addys below just in case they remove the page

https://www.cryptsy.com/coinvotes/

and the wayback machine has Saved 27 times between May 27, 2014 and January 21, 2016 for all you block tracers  

https://web.archive.org/web/20160401000000*/https://www.cryptsy.com/coinvotes/


Pastebin of todays coinvote addys page

http://pastebin.com/EBvY77nh

[GoldSeal]

Has a verifiable class action suit actually been started to this point, be it with the Silver Law Group or another firm?

Yes it was filed 01/14 by Silver Law and another more recently from WItes & Kapetan. They are still waiting for personal service on Paul since he seems to have fled the country - because that's what innocent people do when everything goes pear shaped. They flee the country.

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

[Phildo]

Horus what exactly does your lofty title "Head of Anti-Fraud and Investigations" entail when circa 6 million dollars of coins magically escape from the vaults? Did you investigate this or did you command one of your "underlings" to do so, you being the head of that team of yours? Funds fucked off out of Cryptsy what was it, end of July 2014, Mollusik or whatever his name is, the other useless dunce only corrects the github in April 2015.  What were you guys doing from July through April. Sitting around giggling Hey where did that 6 mil. vanish to Paul, oh I dunno Horus, ask Mollusik. What were doing all this time Horus, sitting on the troll box or investigating. How did your "investigations" go exactly. Holmes or Clouseau? Then you hang around here whining it wasn't me, I have no say, I am no one. Just getting my paycheck like everyone else. Pathetic. And you dare to leave this bullshit title on your profiles? Like its a feather in your cap ""Head of Anti-Fraud and Investigations" of Cryptsy, I Horus the Sun, while 6 million dollars were snatched from beneath my nose.

Idiot.

He was hired as a scapegoat. You're just bullying a pawn

Well, that pawn's actions caused many people to lose money, so he's going to get bullied until he gives us a reason not to.

You can't extract blood from a stone, but you can sure as hell try!

He is not a stone, he has more information than he is letting on. That's all people are looking for from him, and it's one of the things that confuses me greatly about the bitcoin "community."

Obvious scams happen every day, and people "employed" by the scam companies manage to hang around and post after the scam without giving out any useful information. It just doesn't make sense. Either spill the info you have to help everyone out, or go crawl under the rock that your boss is hiding under.

The only thing crazier than them hanging around and not helping out are the people that allow them to.

[GoldSeal]

Horus what exactly does your lofty title "Head of Anti-Fraud and Investigations" entail when circa 6 million dollars of coins magically escape from the vaults? Did you investigate this or did you command one of your "underlings" to do so, you being the head of that team of yours? Funds fucked off out of Cryptsy what was it, end of July 2014, Mollusik or whatever his name is, the other useless dunce only corrects the github in April 2015.  What were you guys doing from July through April. Sitting around giggling Hey where did that 6 mil. vanish to Paul, oh I dunno Horus, ask Mollusik. What were doing all this time Horus, sitting on the troll box or investigating. How did your "investigations" go exactly. Holmes or Clouseau? Then you hang around here whining it wasn't me, I have no say, I am no one. Just getting my paycheck like everyone else. Pathetic. And you dare to leave this bullshit title on your profiles? Like its a feather in your cap ""Head of Anti-Fraud and Investigations" of Cryptsy, I Horus the Sun, while 6 million dollars were snatched from beneath my nose.

Idiot.

He was hired as a scapegoat. You're just bullying a pawn

Well, that pawn's actions caused many people to lose money, so he's going to get bullied until he gives us a reason not to.

You can't extract blood from a stone, but you can sure as hell try!

He is not a stone, he has more information than he is letting on. That's all people are looking for from him, and it's one of the things that confuses me greatly about the bitcoin "community."

Obvious scams happen every day, and people "employed" by the scam companies manage to hang around and post after the scam without giving out any useful information. It just doesn't make sense. Either spill the info you have to help everyone out, or go crawl under the rock that your boss is hiding under.

The only thing crazier than them hanging around and not helping out are the people that allow them to.

I have a feeling this is all a stalling tactic to buy Paul time while he avoids getting served in civil suits and possibly moves assets out of reach of creditors. It's obvious this has been planned since the gig was up end of October. Why else would project investors suddenly change offices in the middle of he night, etc.

He's basically doing what realsolid did and he'll probably get away with it.

[ErnieRox]

I'm sorry , I do not understand the question. As far as coins, Cryptsy opened some for withdrawal earlier today, and I believe more will open in next couple of days. As far as exact details, like which coins when,  I do not know, that is just what I heard. Thank you.

per blog.cryptsy.com

– Update 2016/01/19 10:08pm –
The following wallets have been opened for withdrawals:

<SNIP>

~nh

none of this coins are in their top 10 volume coins apart from etherium which was sold to people at 100% plus mark up so fuck off with your shit coin list

Umm --- I have nothing to do with cryptsy, simply putting information out there.

From your response, my guess is you took a beating.

Sorry it happened

dont bother, i got trolled for the same thing lol 

[Gleb Gamow]

Wow! This is very bad!

Still, I thought the performance came off desperate. On one hand, you have to give him credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when a cryptocurrency enthusiast is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like him, whose natural instinct is to talk his way out of problems. His handlers would be wise to take the shovel out of his hands, tell him to disappear for a few days, and try to contain this thing before it gets much worse.

[garmin]

Wow! This is very bad!

Still, I thought the performance came off desperate. On one hand, you have to give him credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when a cryptocurrency enthusiast is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like him, whose natural instinct is to talk his way out of problems. His handlers would be wise to take the shovel out of his hands, tell him to disappear for a few days, and try to contain this thing before it gets much worse.

What? The Amy Schumer Plagiarism Scandal you cut that quote from?

[Gleb Gamow]

Wow! This is very bad!

Still, I thought the performance came off desperate. On one hand, you have to give him credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when a cryptocurrency enthusiast is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like him, whose natural instinct is to talk his way out of problems. His handlers would be wise to take the shovel out of his hands, tell him to disappear for a few days, and try to contain this thing before it gets much worse.

What? The Amy Schumer Plagiarism Scandal you cut that quote from?

Wait, Amy's stealing my content? 

[garmin]

Wow! This is very bad!

Still, I thought the performance came off desperate. On one hand, you have to give him credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when a cryptocurrency enthusiast is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like him, whose natural instinct is to talk his way out of problems. His handlers would be wise to take the shovel out of his hands, tell him to disappear for a few days, and try to contain this thing before it gets much worse.

What? The Amy Schumer Plagiarism Scandal you cut that quote from?

Wait, Amy's stealing my content?  

Someone is stealing content...

http://www.pastemagazine.com/articles/2016/01/an-exhaustive-primer-on-the-amy-schumer-scandal-ye.html

Still, I thought the performance came off desperate. On one hand, you have to give her credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when someone famous is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like Schumer, whose natural instinct is to talk her way out of problems. Her handlers would be wise to take the shovel out of her hands, tell her to disappear for a few days, and try to contain this thing before it gets much worse.

bout 3/4 down the page.

It's all about credibility and proof  

Shane?

[Gleb Gamow]

Wow! This is very bad!

Still, I thought the performance came off desperate. On one hand, you have to give him credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when a cryptocurrency enthusiast is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like him, whose natural instinct is to talk his way out of problems. His handlers would be wise to take the shovel out of his hands, tell him to disappear for a few days, and try to contain this thing before it gets much worse.

What? The Amy Schumer Plagiarism Scandal you cut that quote from?

Wait, Amy's stealing my content?  

Someone is stealing content...

http://www.pastemagazine.com/articles/2016/01/an-exhaustive-primer-on-the-amy-schumer-scandal-ye.html

Still, I thought the performance came off desperate. On one hand, you have to give her credit for an outright denial—it’s a refreshing change from the usual mumbling equivocations we get when someone famous is caught in a nasty situation. On the other hand, the intricate web of words can’t refute the video, which remains the most compelling piece of evidence. Frankly, it’s spin-proof, and that’s a bit of a PR nightmare for someone like Schumer, whose natural instinct is to talk her way out of problems. Her handlers would be wise to take the shovel out of her hands, tell her to disappear for a few days, and try to contain this thing before it gets much worse.

bout 3/4 down the page.

It's all about credibility and proof  

Shane?

Okay, here's the deal. Amy and I are very close friends borrowing from one another all the time. Just yesterday, she borrowed me a used tampon, and I borrowed her a Cryptsy joke. I'm pretty sure I got the better end of the deal, for I'm playin' fetch with it right now between postings, evidence being that my tail's a waggin' (from playin' fetch, that is, for I foam at the mouth when I post).

[garmin]

WOW

Just WoW

http://pastebin.com/58KYPAGa

"I went to their physical address. It's a rented office that is barely larger than a broom closet, about 200 sq. ft according to the people in the office next door. She said she had never seen anyone there in the previous 6 months that the "Project Investors Inc" (Cryptsy's Corp Name) had been there. Project Investors is what is on the door. She said the office had been used by a number of people over the past 10 years as a mail drop."

And such more WOW

http://pastebin.com/u/Traderberg

[Gleb Gamow]

Leroy Fodor's Last Farewell: https://bitcointalk.org/index.php?topic=989670.msg13602177#msg13602177

In closing, as a long time client of Cryptsy we had a lot of trust in the team running it, we had a lot of faith in their exchange, and we were loyal in the agreements we made with them, and supported them until they closed. To avoid this issue in the future we will spread our trading across several exchanges.

Translated: I'll miss the ball cupping from and to a fellow serial liar, now spreading my ball cupping to other exchanges as I try my damndest to advance StakeMiners Ponzi.

[Hippie Tech]

I still don't know why you're harassing me with this shit. I was NEVER top echelon at Cryptsy, NEVER corporate. I've always been a low to mid-level employee. I understand looking into corporate level, but just because I have my face out there as PR last couple of months youre busting my balls. Again, I have done fuck all wrong and you keep staying on me as a topic. If a big bank fucks someone over, do you investigate the investigators? Makes no sense and y'all are grasping at straws now. I don't know why you have such a fuckin' hard on for me, I ain't that pretty

Especially since you started to put on all that weight..

.. its as if you don't want people to easily recognize you.



It is a pretty safe assumption that you had top level access from the onset.


https://ca.linkedin.com/in/horus-thesun-48a56241


@Bruno
We should start a pool that guesses how many times BitJohn's spam bots refer to the craptsy support staff as "the team".

[Gleb Gamow]

From the desk of I'm Doin' Horus' Job:

http://blog.cryptsy.com/

About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies.

Additional BTC transactions taken from another wallet on the same day:

https://blockchain.info/tx/e68f52a38f58e71b951a08650e20aea3f62f7331a3f548e99181f6dbf1cc1d51
https://blockchain.info/tx/48721871b11f716688fcf80a91a5c7586a1dddee83d90b84b564f3f29e11504c
https://blockchain.info/tx/790aa7ec2678552c88cf95110c0df4bcc16a72b8f7e6f331292b977cc6e481df
https://blockchain.info/tx/e8bb46bc6ea5f4580dd2b73f5d6a116e9023c84eb7c0fd4f34bcef3aca606fad
https://blockchain.info/tx/f3998a7e2e8b451106327d2c6e7f73ba58c2fd54b4bb3595b18a2d76e7d15f44

Time for me to look into #3 on the list, namely this bitcoin wallet address: 159m8sYcDJwPfJaVpLeKJitkQTiPKevnY4 pertaining to this tx: https://www.walletexplorer.com/txid/790aa7ec2678552c88cf95110c0df4bcc16a72b8f7e6f331292b977cc6e481df (image below)



First, let's look at Cryptsy's proclaimed COLD WALLET 18TfUhH5pN6pj7QEpLQBJThMxpydi2Gc4N (highlighted above), highlighting transactions on or near the date of the event.



The 10 BTC aside, note the 0.0001 BTC stemming from https://www.walletexplorer.com/txid/474e6c04aa9bf4e8627833d2215e7e736a1be25343831ed8b654e3d7b182e183 and being withdrawn approximately an hour and an half later here: https://www.walletexplorer.com/txid/8db95a057e10c029c06d7ca3353a4832b0fca201509c95653a591cae80d2be65

Somebody had to have had access to that COLD WALLET during a late Monday evening (July 28, 2014, EDT) to transfer that 0.0001 BTC, wouldn't they? And where did that scant coinage end up after being added to et al. via myriad Cryptsy controlled bitcoin wallet addresses?

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



"Here" being the 37 BTC (highlighted above) on the newly created Cryptsy bitcoin wallet address very shortly after the final event of the event: https://www.walletexplorer.com/txid/5a0046e495e68af04848e0acd373d239a2e36d66e78ecb370f8bc19a9e3df304

[Gleb Gamow]

http://blog.cryptsy.com/

We do, however, fully comply with our Federal MSB requirements.  This includes filing SAR (Suspicous Activity Reports) and CTR (Currency Transaction Reports).  We also have one of the most extensive KYC programs in the industry, scrub accounts against the OFAC list, and perform Transaction Monitoring.   At a federal level, we are compliant.

https://en.wikipedia.org/wiki/Suspicious_activity_report

SARs include detailed information about transactions that are or appear to be suspicious. The goal of SAR filings is to help the government identify individuals, groups and organizations involved in fraud, terrorist financing, money laundering, and other crimes.

BRUNO: Hello, SARs, Bruno here. Yeah, I wish to filing a report for a missing over thirteen million dollars that may or may not be currently in control of rogue terrorists... Good point! All terrorists are considered rogue. My bad... No, the missing millions weren't mine but some other who claimed that he called the FBI but was referred to some unknown website named 13C and was awaiting back word from it which hasn't occurred yet according to dude's recent communiqué... When was the money stolen? On July 29, 2014. Why you laughing?... Yes, that's the guy. Paul Vernon. You're already on top of it? You sure?... So you don't need my help, eh? Not even for blockchain foren... On top of that, too, huh?... Nope, I guess that's it... Eggnog? You got me mixed up with some other dude. Later, bud.

[Gleb Gamow]

http://blog.cryptsy.com/

We do, however, fully comply with our Federal MSB requirements.  This includes filing SAR (Suspicous Activity Reports) and CTR (Currency Transaction Reports).  We also have one of the most extensive KYC programs in the industry, scrub accounts against the OFAC list, and perform Transaction Monitoring.   At a federal level, we are compliant.

https://en.wikipedia.org/wiki/Suspicious_activity_report

In the United States, FinCEN requires that an SAR be filed by a financial institution when the financial institution suspects insider abuse by an employee; violations of law aggregating over $5,000 where a subject can be identified;[clarification needed] violations of law aggregating over $25,000 regardless of a potential subject; transactions aggregating $5,000 or more that involve potential money laundering or violations of the Bank Secrecy Act; computer intrusion; or when a financial institution knows that a customer is operating as an unlicensed money services business.

Each SAR must be filed within 30 days of the date of the initial determination for the necessity of filing the report. An extension of 30 days can be obtained if the identity of the person conducting the suspicious activity is not known. At no time, however, should the filing of an SAR be delayed longer than 60 days. The Bank Secrecy Act specifies that each firm must maintain records of its SARs for a period of five years from the date of filing.

http://blog.cryptsy.com/

Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting.

Paul Vernon: Deposit on Cryptsy, Cryptsy is fun, come right now, don't walk - run!

Paul Vernon: Safe? Darn tootin'! We filing SAR (Suspicous Activity Reports) reports.

Paul Vernon: A year and half ago, over thirteen million dollars worth of cryptocurrencies was stolen from Cryptsy.

Paul Vernon: Why we didn’t report this to the authorities when this occurred? To be Marshall Long et al. honest, we were unsure who exactly we should be contacting.

Paul Vernon: We're reaching out to those of the community we haven't hammer-banned to help us hunt down the person(s) responsible for the event leaning to reduction of my... I mean ours... I mean your funds, offering up a reward of 1000 BTC coming out of mine... I mean ours... I mean our clients' pockets, their moneys on account.

http://www.anti-moneylaundering.com/pdf/Example_Fines_and_Penalties.pdf

Money transmitter with 7,500 agents. San Fernando, California. Failure to establish and implement an anti-money laundering program. Structuring. Failure to control and supervise agents. Failure to report Suspicious Transactions (SARs). Fine $12,000,000.

$13,000,000 - $12,000,000 =    ?   


"Don't know! Mongo only pawn in game of life.

[iGotSpots]

I think the best part of this is Cryptsy giving the option of trying to sell a business with like -$50 million of liquid cash lol

[Libertymind]

I think the best part of this is the option of trying to sell a business with like -$50 million of liquid cash lol

If the banks can get bail outs from tax payers, why can't exchanges get bail outs from whatever suckers they can line up. Even if this happened. Who would use the site at this moment?  Maybe Horus can reassure people that the new owners are legit. Its fractional reserve right, all on the up and up. Banks do it after all. No reason to suspect criminal activity that needs reporting.