crypsty hacked over 1.5 yrs ago. 13000 BTCs and 300,000 ltc

[hanzac]

..and another one bites the dust.

Decentralized exchanges need to happen.  Instantdex or Etherex, whoever, hurry up

Bitshares and Next are working. The problem is how to trade our beloved altcoins on those exchanges?? I don't think anyone has figured that out yet. Even then there would have to be some sort of centralization for fiat on and off ramps.

We have to turn to the decentralized exchange systems. The system should do automatically escrow.

Trust machine is a way ahead. But maybe in future we need to be careful to the rise of AI.

[sidhujag]

Cltv has been used to do acct with any coin using cltv.. I plan to allow payments in bitcoin in my decentralized marketplace of offers.

[entertheabyss]

So I guess it's true after all.

Cryptsy really does suck


~BCX~

Hey, better late than never

[smoothie]

So I guess it's true after all.

Cryptsy really does suck


~BCX~

lol and after all this support you gave them publicly....it was for nothing. 

[The Sceptical Chymist]

Christ, it sounds like they did everything they could to keep the truth from their customers, and now all is fucked.

What we need are exchanges that are actually run by businessmen and not computer geeks and such.  Geeks have an important part in this, but these exchanges need people who know how to run an exchange, know what I mean?  It sounds like no one put on their problem-solving hats when they found out about the trojan.

[wpalczynski]

So I guess it's true after all.

Cryptsy really does suck


~BCX~

lol and after all this support you gave them publicly....it was for nothing.  

Of course, it was likely in on the scam, it likely benefited greatly from the cryptsy thievery.

[Arrakeen]

Christ, it sounds like they did everything they could to keep the truth from their customers, and now all is fucked.

What we need are exchanges that are actually run by businessmen and not computer geeks and such.  Geeks have an important part in this, but these exchanges need people who know how to run an exchange, know what I mean?  It sounds like no one put on their problem-solving hats when they found out about the trojan.

Cryptsy did put on their problem-solving hats...hiding the truth for maximum profits was the solution, it seems.   

[Bustart]

Christ, it sounds like they did everything they could to keep the truth from their customers, and now all is fucked.

What we need are exchanges that are actually run by businessmen and not computer geeks and such.  Geeks have an important part in this, but these exchanges need people who know how to run an exchange, know what I mean?  It sounds like no one put on their problem-solving hats when they found out about the trojan.

Cryptsy did put on their problem-solving hats...hiding the truth for maximum profits was the solution, it seems.   

The delay in withdraws in the last few months could be to win time to get their hands on the customer coins.

[markm]

Well maybe there is a simple balance-reconciliation system that could not only work for Cryptsy but as a regularly running reconciliation routine all exchanges could use, akin to the trial balance and month-end balance used in business accounting routines.

Simply add up regularly the number of actual coins of each type that are actually held by the exchange, compare that to the total of each coin the customer balances add up to, and apply the ratio to the customer balances.

Basically reflect the fractional reserve directly by converting all customer balances every day or week or month or whatever so they add up to the number of coins actually in the exchange.

If that was running all the time, within hours or a day or whatever of any coins vanishing of any type, all the customers holding coins of that type would see their loss right away.

If one third of a given type of coin goes missing, presto all customer balances of that type of coin go down by one third.

Simple, direct, and avoids co-mingling of coins of different types.

Coins more highly targeted by thieves and thus presumably at higher risk would reflect their temptingness by people's relative reluctance to hold that type of coin as compared to some other coin they feel is less likely to be targeted.

All losses would be seen as soon as possible, so people could adjust their trading strategies accordingly.

Nice and transparent and simple, and it even keeps the risk / reward of each coin type to itself instead of holders of one kind of coin being forced to pay for the losses of folks who choose to hold a more risky / more likely to be targeted type of coin.

-MarkM-

[BITDV]

One of the biggest problems is people use exchangers as banks , there not banks people have to learn do there trades and then put there cryptos in there personal wallets not leave them laying around on exchanges , this just puts bulls eyes on the exchanger's for hackers!!

[Arrakeen]

One of the biggest problems is people use exchangers as banks , there not banks people have to learn do there trades and then put there cryptos in there personal wallets not leave them laying around on exchanges , this just puts bulls eyes on the exchanger's for hackers!!

Yup, even after ALL the hysteria over Gox, people still leave all their funds on exchanges, then get mad when that exchange goes down...

...that reminds me, I should probably make some withdraws 

[tittiecoiner]

btw, I guess in the US, delayed filing of insolvency is considered a crime, too?

[healthhealer4]

trade in exchange that dont have control over your coins then the rest will follow . www.bitstock.com and www.multisigna.com

[Bustart]

btw, I guess in the US, delayed filing of insolvency is considered a crime, too?

In UK, running a company in insolvency status is a crime.

[erk]

How anyone could allow a payout from a wallet without checking that there is a corresponding valid client order for a withdrawal in their database, is beyond me.

[Nameless Coin]

How anyone could allow a payout from a wallet without checking that there is a corresponding valid client order for a withdrawal in their database, is beyond me.

I think their exchange was managed by schoolkids.
How can they run a operation worth 13k BTC and have this kind of security?

[wikenpp]

How anyone could allow a payout from a wallet without checking that there is a corresponding valid client order for a withdrawal in their database, is beyond me.

I think their exchange was managed by schoolkids.
How can they run a operation worth 13k BTC and have this kind of security?

I doubt they even had security. How in the hell can they lose all their coins?
It's make no sense such a company as cryptsy can lose so much coins.

[Bustart]

How anyone could allow a payout from a wallet without checking that there is a corresponding valid client order for a withdrawal in their database, is beyond me.

I think their exchange was managed by schoolkids.
How can they run a operation worth 13k BTC and have this kind of security?

I doubt they even had security. How in the hell can they lose all their coins?
It's make no sense such a company as cryptsy can lose so much coins.

So it could be an inside job. The BigVern or somebody else stole the money. Somebody inside create the (lucky) coin and persuade the BigVern to install the wallet and steal the bitcoins.