Federal Investigations of Cryptsy Underway

[tokeweed]

Federal Investigations of Cryptsy Underway

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...

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

[tokeweed]

Cryptsy should have stayed away from Paycoin.  I think this is where the Fed's alarm bells started ringing, when they got involved with that big of a scam.

It's a pity.  I liked trading at Cryptsy.  I never had a problem using them.

[duuuuude]

This is very serious,  there were many peoples jumping of point for alt coins, this will probably be a black eye for cryptos. But in a weird way i think it will renew interest in crypto's ala silk road.


J

[r0ach]

I thought it was interesting seeing one of the things in the article they were investigating on Cryptsy is "fake walls" to manipulate price.  Yesterday I type on Poloniex, "welp, there's the scammer that puts up a fake 27 btc sell wall and starts spamming the sky is falling in engrish to try and drive down price", and of course one of the moron moderators types "there's no such thing as fake walls, stop that", then the wall is gone 2 seconds later.  They all claim to be running "clean" exchanges and tell everyone to not talk about manipulation while it just goes on non-stop in front of their faces.

[sorryforthat]

I thought it was interesting seeing one of the things they were investigating is "fake walls".  Yesterday I type on Poloniex, "welp, there's the scammer that puts up a fake 27 btc sell wall and starts spamming the sky is falling in engrish to try and drive down price", and of course one of the moron moderators types "there's no such thing as fake walls, stop that", then the wall is gone 2 seconds later.  They all claim to be running "clean" exchanges and tell everyone to not talk about manipulation while it just goes on non-stop in front of their faces.

Ill back this up. I was in the box when you made mention of it and do recall the mods trying to move past the thought.

[tokeweed]

I thought it was interesting seeing one of the things they were investigating on Cryptsy is "fake walls" to manipulate price.  Yesterday I type on Poloniex, "welp, there's the scammer that puts up a fake 27 btc sell wall and starts spamming the sky is falling in engrish to try and drive down price", and of course one of the moron moderators types "there's no such thing as fake walls, stop that", then the wall is gone 2 seconds later.  They all claim to be running "clean" exchanges and tell everyone to not talk about manipulation while it just goes on non-stop in front of their faces.

If the BTS community had a choice, which exchange would you guys want BTS to be traded into?

[BitcoinEXpress]

This has been completely debunked.


I have had nothing but excellence across hundreds of trades at Cryptsy.



~BCX~



http://blog.cryptsy.com/post/130547612142/re-coinfire

[r0ach]

If the BTS community had a choice, which exchange would you guys want BTS to be traded into?

I want everything traded on a DEX because the exchanges can defraud people all day by running their own bots, trading with customer funds, having infinite liquidity, access to all long/shorts, etc.  There's no reason you should ever trust an exchange.  We don't need exchanges trying to censor people telling them they're not allowed to talk about manipulation while they watch it going on 24 hours and claim it doesn't exist either.  It's the equivalent of running a crack house and telling people they can't talk about drugs.

[tokeweed]

This has been completely debunked.


I have had nothing but excellence across hundreds of trades at Cryptsy.



~BCX~



http://blog.cryptsy.com/post/130547612142/re-coinfire

Wtf?  Seriously?

[tokeweed]

I think I'll wait and see before sending some coins back at Cryptsy.  I just don't know who's telling the truth anymore...

[sdmathis]

This has been completely debunked.


I have had nothing but excellence across hundreds of trades at Cryptsy.



~BCX~



http://blog.cryptsy.com/post/130547612142/re-coinfire

That's the same thing that GAW said when it was revealed that they were being investigated.

[iCEBREAKER]

That's the same thing that GAW said when it was revealed that they were being investigated.

As if on cue, DashHoles are rising to defend their fellow scammer Big Vern and his scamcoin exchange (where most DashScam volume happens).

There is also the distinct possibility that Cryptsy has done absolutely nothing wrong at all and these are all completely false allegations.

These DashHoles desperately want to dump their bags onto greater fools before the SEC/CFTC/FBI/etc catch up with eduffield and put that cargo cult leader in jail for defrauding his followers.

[illodin]

Dash

Hmm this Dash sounds interesting, I'm starting to get pissed at my Monero investment which has been on an eternal decline ever since the OTC trading pre-exchange days.

Also what concerns me, is that almost immediately after Cryptsy adds Monero, it gets under federal investigation. And further, Monero starts waving the red herring of "DASH defending Cryptsy" (such as the post above) and other nonsense trying to move the attention away from the correlation. Coincidence? Maybe.. but one might start to wonder how safe it is to deal with Monero given the circumstances.

[zaph3t]

Is this serious? Cryptsy is not looking good at the moment until proven innocent. But I wont be surprised if the Investigation turns out to be true.

[iCEBREAKER]

Monero

Yes, Monero is what you DashHoles thought you were buying.  And it mainly trades on an exchange that is not being reported by Coinfire to be under Federal investigation.

Another nice thing about Poloniex is they know how to run an exchange, unlike you DashHoles' preferred scam-coin fraud nexus.

BigVern on Twitter: Cryptsy halts bitcoin withdrawals due to the blockchain malleability issue
https://www.reddit.com/r/Bitcoin/comments/3nqfww/bigvern_on_twitter_cryptsy_halts_bitcoin/

[anvilc]

I have been able to withdraw BTC just fine (about 3 hours ago), appeared on the Blockchain quickly like normal. Took awhile to get confirmed though, for whatever reason.

[illodin]

Hmm this Dash sounds interesting, I'm starting to get pissed at my Monero investment which has been on an eternal decline ever since the OTC trading pre-exchange days.

Also what concerns me, is that almost immediately after Cryptsy adds Monero, it gets under federal investigation. And further, Monero starts waving the red herring of "DASH defending Cryptsy" (such as the post above) and other nonsense trying to move the attention away from the correlation. Coincidence? Maybe.. but one might start to wonder how safe it is to deal with Monero given the circumstances.

Another concern about Monero is that the Monero exchange called Poloniex issued KYC policy out of the blue with extremely short warning and many people who thought they were dealing Monero privately were forced to reveal their identities to a 3rd party and trust they don't leak them to the state (yeah right) or get hacked again if they wanted to cash out.

Yes that was yet another concern, thanks for reminding.

You forgot to mention though that people still trading Monero there shows even Trolleros don't regard Monero as being useful privacy tool but just a speculative asset to sell to the greater fools (which is a natural resource that is just running out it seems).

[BitcoinEXpress]

Amazing four days later and the only source for this story is Coinfire.


~BCX~

[kelsey]

Amazing four days later and the only source for this story is Coinfire.


~BCX~

equally though there is only a blog rebuttal by the accused that you somehow clam makes the story "completely debunked"  

anyway I did my own proper checks (we do all the time in securites on companies eg before acquisitions etc while we have a paid service I'm sure theres freebies on the net for such searches), anyway Paul Verns actually talking the truth, there is no current investigation by any of the agencies listed in this article (though that doesn't completely rule out an exceedlying unlikely secret investigation, however Paul Vern would himself not know about this and therefore would still be stating the truth).

unsurprisingly from the records we look at its not from people lack of trying to get cryptsy in trouble, however no agencies has been interested in following up any claims false or otherwise.

My educated (in this field) guess would be, someone is suspicious of cryptsy borrowing or similar from uses funds, and trying to cause a run on them to expose this   and from examining resent uses withdraw issues including my own ( https://bitcointalk.org/index.php?topic=1173703.msg12638883#msg12638883), well make your own independant judgement.


now BCX you claim "I have had nothing but excellence across hundreds of trades at Cryptsy." however be honest, have you yourself actually be able to withdraw any significant btc or ltc (say 1k+ ltc worth) since this article was published?

[tokeweed]

Is Cryptsy's total volume traded in the site lower than usual?