Amid controversies surrounding the legitimacy of the cryptocurrency exchange Cryptsy and the recent withdrawal issues many users have reported, Silver Law Group, along with the law firm of Wites & Kapetan, P.A., has filed a nationwide class action lawsuit in federal court against Florida-based cryptocurrency exchange operator Cryptsy and its principal, Paul (“Big Vern”) Vernon.Growing controversies surrounding the legitimacy of Cryptsy and the recent withdrawal issues have led Silver Law Group, along with the law firm of Wites & Kapetan, P.A., to file a nationwide class action lawsuit in federal court against Florida-based cryptocurrency exchange operator its principal, Paul (“Big Vern”) Vernon.
Over the past few months, Cryptsy has denied account holders access to their cryptocurrency wallets, preventing large withdrawals of digital currencies. Bitcoin traders using the Cryptsy platform specifically struggled to move their funds into a different platform due to their restricted access.
Users claimed that the administrators of the platform randomly locked user funds, accounts, and changed the passwords in purpose to gain control of cryptocurrency wallets with large amounts of bitcoin and other alternative digital currencies.
According to the legal complaint filed by Silver Law Group, The total value of the digital funds being held captive by Cryptsy is speculated to exceed over US$5 million.
More here:
http://www.newsbtc.com/2016/01/14/cryptsy-sued-for-holding-nearly-us5-million-of-user-funds/
