[2015-10-05] Coinfire.io: Federal Investigations of Cryptsy Underway

[LiteCoinGuy]

Federal Investigations of Cryptsy Underway

Coin Fire is now able to report that multiple federal investigations are underway regarding Crypsty.

The online exchange is under several investigations with multiple agencies including the Securities and Exchange Commission, the Internal Revenue Service, and the Criminal Investigation Division of the Internal Revenue Service, among others.

Documents from various investigations obtained by Coin Fire show a litany of purported wrongdoing by the company and several team members. The large number of allegations levied against the company varies from agency to agency in more than 300 pages of documents. In some instances, the investigation alleges that the company failed to obtain appropriate licenses. In one particular instance, a connection is made between a Cryptsy team member and GAW Miners’ fraudulent operations. Other government agencies report a failure to report gains appropriately, market manipulation, the sale of unlicensed securities, money laundering, and more.

http://coinfire.io/2015/10/04/federal-investigations-of-cryptsy-underway/

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[smoothie]

And cryptsy's response:

RE: Coinfire
I feel I need to give a response to the recent Coinfire article.   Like their previous article, they’ve make a lot of claims without giving any kind of proof to their claims.   I know many people don’t take coinfire very seriously these days, which is good.   However there are some out there that may not really know that the kind of “News” these guys produce is not always reliable.
We have never been investigated for anything, period.  We have never gotten any letters from any of the agencies that they have stated in their article, nor have we been contacted via phone or any other method.  It’s safe to say that this article and their reporting are completely false.   My guess is that whomever wrote this article has personal reasons for writing it and are attempting to hurt our business and reputation.
We will be reviewing our legal options against this libelous article.   

Paul Vernon
“BigVern”

I would not be surprised if the allegations are true. Their exchange to me had a lot of red flags associated with it. Not to mention the countless complaints from users.