Cryptsy Hack Resolution - 3rd dispatch posted

[aardvark15]

The lawyers aren't tech savvy they will just take your money. I'm not bureaucratic scum I know how to actually recover the coins.

Why are you still posting on here CrackHead/Eternal Insolent/Cryptcracker?  Seriously, why do you think anyone believes you?  We all know you are a troll.  Although it is slightly amusing to see what you will come up with next so we can have a good laugh.

[1715483767]

1715483767

[romeshomey]

As an example, I worked for a large technical support company and they were not paying their employees all of their wages and other employees filed a class action lawsuit against them, however, I never signed up for it or agreed to anything but today I get checks in the mail from pay I was due over 15 years ago.

[aardvark15]

Now the odd part about this class action settlement is that they asked people to sign a contract.  I've participated in several class action lawsuits, received payments, and have never once signed any contract with a law firm in any of those instances.  Although in those instances there was already a class action filed against those companies and I just got added to the list without ever being asked to sign anything.

I think we have to prove that we are customers.  I think I have done this before with other class action lawsuits.  I think it is sometimes done after a judgment is awarded.  Also, in this case, they don't know how many US customers they are dealing with so it may help with the evidence against cryptsy to show this.

[romeshomey]

The lawyers aren't tech savvy they will just take your money. I'm not bureaucratic scum I know how to actually recover the coins.

Why are you still posting on here CrackHead/Eternal Insolent/Cryptcracker?  Seriously, why do you think anyone believes you?  We all know you are a troll.  Although it is slightly amusing to see what you will come up with next so we can have a good laugh.

I give CryptCracker the benefit of the doubt.  If he can do what he says he can, great.  If not, its not like he is costing us to lose anything.

[rayban84]

Now the odd part about this class action settlement is that they asked people to sign a contract.  I've participated in several class action lawsuits, received payments, and have never once signed any contract with a law firm in any of those instances.  Although in those instances there was already a class action filed against those companies and I just got added to the list without ever being asked to sign anything.

Thank you. Very interesting. You match what the canadian friend told me. It is my first class action lawsuit so I don't know. I was trying to contact the lawyers to clarify these points with them but they do not reply to my emails.

Thanks.

[rayban84]

The screwed up thing about class action lawsuits is that its another form of theft for those that aren't able to contract the attorneys to recover their funds.

What will happen is, any funds recovered for those who have contacted them will go into an account.  There will be many more funds unclaimed than claimed due to the fact that the majority of people who've lost funds are unable to contract the attorneys due to not being US citizens or other various reasons.

The court can then distribute all unclaimed funds to those who have claimed funds through contracts with the attorneys, meaning, those who have filed for the lawsuit will end up getting ALL of the funds recovered through several rounds of distribution of unclaimed funds after they receive their initial settlement for their own personal claim.

After they receive their settlement claim, any unclaimed funds will then be distributed by the court, but the court can only distribute funds to those who initially filed claims.

This is why usually in class actions, a few victims make out while the majority of victims get nothing.

Last clause of contract with Silverlaw:

By my signature on this contract, I certify that I am a citizen of the United States of America, or in the1
alternative, that I am a legal resident residing in the United States of America; if I am neither a United
States citizen or legal resident, I have attached a currently valid governmental-issued photo identification
card, passport, or equivalent paperwork.

What do you think about the last clause of the contract with Silverlaw?. I didn't join yet. I am neither american nor resident in the US. I don't know if I am going to have the same rights as other americans. I am not an expert in american law. I consulted a canadian friend who told me that the contract was a ripoff. I would like a second opinion.

Thanks

Well I haven't joined and I am a US citizen.  The reason I haven't joined is because I have already participated in class action lawsuits in the past and I've been lucky to recover even 3% of what I've lost in previous scams.   What really bothers me about class action lawsuits is the unclaimed fund distribution because you only have 90 days to cash the check and in many cases people don't even know they have a check coming because it can be years after the lawsuits was filed, and it goes to a previous address or whatnot and after 90 days the court will distribute the funds again and this time anyone who hasn't cashed a check gets left out and the distribution rounds continue in that manner until all funds are distributed.

So some people will get something back and others will get nothing, even if they were part of the initial settlement.  

So I see that it is better to not to join and wait. Thank you for sharing. Imaging that lucky 3% of the funds recovered + having it transfered back to Europe. Literally it will be a dust transaction.

[romeshomey]

The screwed up thing about class action lawsuits is that its another form of theft for those that aren't able to contract the attorneys to recover their funds.

What will happen is, any funds recovered for those who have contacted them will go into an account.  There will be many more funds unclaimed than claimed due to the fact that the majority of people who've lost funds are unable to contract the attorneys due to not being US citizens or other various reasons.

The court can then distribute all unclaimed funds to those who have claimed funds through contracts with the attorneys, meaning, those who have filed for the lawsuit will end up getting ALL of the funds recovered through several rounds of distribution of unclaimed funds after they receive their initial settlement for their own personal claim.

After they receive their settlement claim, any unclaimed funds will then be distributed by the court, but the court can only distribute funds to those who initially filed claims.

This is why usually in class actions, a few victims make out while the majority of victims get nothing.

Last clause of contract with Silverlaw:

By my signature on this contract, I certify that I am a citizen of the United States of America, or in the1
alternative, that I am a legal resident residing in the United States of America; if I am neither a United
States citizen or legal resident, I have attached a currently valid governmental-issued photo identification
card, passport, or equivalent paperwork.

What do you think about the last clause of the contract with Silverlaw?. I didn't join yet. I am neither american nor resident in the US. I don't know if I am going to have the same rights as other americans. I am not an expert in american law. I consulted a canadian friend who told me that the contract was a ripoff. I would like a second opinion.

Thanks

Well I haven't joined and I am a US citizen.  The reason I haven't joined is because I have already participated in class action lawsuits in the past and I've been lucky to recover even 3% of what I've lost in previous scams.   What really bothers me about class action lawsuits is the unclaimed fund distribution because you only have 90 days to cash the check and in many cases people don't even know they have a check coming because it can be years after the lawsuits was filed, and it goes to a previous address or whatnot and after 90 days the court will distribute the funds again and this time anyone who hasn't cashed a check gets left out and the distribution rounds continue in that manner until all funds are distributed.

So some people will get something back and others will get nothing, even if they were part of the initial settlement.  

So I see that it is better to not to join and wait. Thank you for sharing. Imaging that lucky 3% of the funds recovered + having it transfered back to Europe. Literally it will be a dust transaction.

I can't really advise you on what to do but in my case I'll wait and see what happens.  I figured the most they could do for me was recover a very small percentage after their fees and wasn't really worth the ink to sign the contract.

[Fontas Returns]

Supposedly in Chinese Prison they beat the prisoners with 2x4s with nails sticking out of them and force them to chant communist slogans. Does the government extradite from China? I think it would be great if the coins coins be recovered. Vern needs someone to recover the coins or else buy him out, if one of these things happens soon enough I think he can avoid going to jail. If Cryptsy can manage to get bailed out real soon he can probably turn it around. After the lawsuit begins, it will be hard for him to stay out of jail. Showing up in court and at depositions and pleading the 5th will just make him look even guiltier. Avoiding the whole thing will make him look guilty and then he'd potentially lose a judgment by default.. Answering questions under oath he will likely incriminate himself if he does answer. The longer it takes for the coins to be recovered or for Cryptsy to secure a bail out the more chance Vern has of going to jail. He should want to sell Cryptsy at any cost since it is a huge liability for him at this point. If he can recover the coins or sell Cryptsy to a buyer who can payout the customers I think he can probably avoid jail. I think that's what would be best for the customers as well. Perhaps a rich chinese millionaire investment group could buy Cryptsy, pay out customers, and then Vern would probably have the heat off him and go on with life.

[mannyg]

Silver Law Group is in my town,.. actually 5 minutes away.  I pass them just about every day... I should drop in and plead my case of what happened with my currency and see what they can do?

[Gleb Gamow]

Silver Law Group is in my town,.. actually 5 minutes away.  I pass them just about every day... I should drop in and plead my case of what happened with my currency and see what they can do?

Great, and tell them the event took place in July 2014, NOT June 2014, as they penned on the legal documents already in a judge's hands.

[spamsucks]

Supposedly in Chinese Prison they beat the prisoners with 2x4s with nails sticking out of them and force them to chant communist slogans. Does the government extradite from China? I think it would be great if the coins coins be recovered. Vern needs someone to recover the coins or else buy him out, if one of these things happens soon enough I think he can avoid going to jail. If Cryptsy can manage to get bailed out real soon he can probably turn it around. After the lawsuit begins, it will be hard for him to stay out of jail. Showing up in court and at depositions and pleading the 5th will just make him look even guiltier. Avoiding the whole thing will make him look guilty and then he'd potentially lose a judgment by default.. Answering questions under oath he will likely incriminate himself if he does answer. The longer it takes for the coins to be recovered or for Cryptsy to secure a bail out the more chance Vern has of going to jail. He should want to sell Cryptsy at any cost since it is a huge liability for him at this point. If he can recover the coins or sell Cryptsy to a buyer who can payout the customers I think he can probably avoid jail. I think that's what would be best for the customers as well. Perhaps a rich chinese millionaire investment group could buy Cryptsy, pay out customers, and then Vern would probably have the heat off him and go on with life.

Vern will never come back to the US to fight the lawsuit. EVER. There is no point, he has no defense. Whatever he wants to say about the hack, all coins lost after that hack are on him and his staff. Cryptsy stole the users funds in the end... the hacker stole some and cryptsy stole the rest.
Even if he came back to fight it, he would loose, and he doesn't have 10 million laying about to settle the judgement so it would be worthless.
China has no extradition treaties with the US (except Hong Kong) so he would have no incentive to ever leave China. 

Face it... the money is gone. The rest of this is all just for show.

[aardvark15]

The lawyers aren't tech savvy they will just take your money. I'm not bureaucratic scum I know how to actually recover the coins.

Why are you still posting on here CrackHead/Eternal Insolent/Cryptcracker?  Seriously, why do you think anyone believes you?  We all know you are a troll.  Although it is slightly amusing to see what you will come up with next so we can have a good laugh.

I give CryptCracker the benefit of the doubt.  If he can do what he says he can, great.  If not, its not like he is costing us to lose anything.

I'm not buying it at all.  He could easily prove it if he was legit.  He's just stringing you all along for as long as he can.

[aardvark15]

Supposedly in Chinese Prison they beat the prisoners with 2x4s with nails sticking out of them and force them to chant communist slogans. Does the government extradite from China? I think it would be great if the coins coins be recovered. Vern needs someone to recover the coins or else buy him out, if one of these things happens soon enough I think he can avoid going to jail. If Cryptsy can manage to get bailed out real soon he can probably turn it around. After the lawsuit begins, it will be hard for him to stay out of jail. Showing up in court and at depositions and pleading the 5th will just make him look even guiltier. Avoiding the whole thing will make him look guilty and then he'd potentially lose a judgment by default.. Answering questions under oath he will likely incriminate himself if he does answer. The longer it takes for the coins to be recovered or for Cryptsy to secure a bail out the more chance Vern has of going to jail. He should want to sell Cryptsy at any cost since it is a huge liability for him at this point. If he can recover the coins or sell Cryptsy to a buyer who can payout the customers I think he can probably avoid jail. I think that's what would be best for the customers as well. Perhaps a rich chinese millionaire investment group could buy Cryptsy, pay out customers, and then Vern would probably have the heat off him and go on with life.

Vern will never come back to the US to fight the lawsuit. EVER. There is no point, he has no defense. Whatever he wants to say about the hack, all coins lost after that hack are on him and his staff. Cryptsy stole the users funds in the end... the hacker stole some and cryptsy stole the rest.
Even if he came back to fight it, he would loose, and he doesn't have 10 million laying about to settle the judgement so it would be worthless.
China has no extradition treaties with the US (except Hong Kong) so he would have no incentive to ever leave China. 

Face it... the money is gone. The rest of this is all just for show.

You're probably right that he's gone for good.  But, I still think we can see where the money goes and we might have a chance to expose Vernon, Shockney, et al.

[Gleb Gamow]

October 7, 2015: Cryptsy’s CEO – A Hard Man In The Face of Coinfire’s Aggro!!!

Tamer: Is says on your “About Us” page that “Cryptsy International is an Internet startup managed by Project Investors, Inc.”; I am not an expert in the legal aspect of managing online businesses, but I think that this sentence is rather unclear, so can you please tell us what does it exactly mean?

Paul: Basically, Cryptsy is a Belize corporation as we have multiple corporations; we have a Canadian corporation and I think we have a corporation elsewhere as well, so Cryptsy, the exchange website itself, is by the Belize corporation and we have a licensing agreement between the US corporation, Project Investors Inc., and Cryptsy Inc. the Belize corporation which grants Project Investors Inc. 100% of the profits that Cryptsy Belize Inc. generates, so it is kind of a separation that keeps Cryptsy itself out of the US, while still kind of being in the US, because it is managed by the US corporation.

Jim Shockney cups my left ball and I think John MacPherson or Marshall Long cups my right ball, both of whom I'm partners with in our Canadian adjunct Cryptsy thingy. <Please, Jehovah, don't have him ask me about China otherwise I would be forced to lie - AGAIN!>

[RoomBot]

The lawyers aren't tech savvy they will just take your money. I'm not bureaucratic scum I know how to actually recover the coins.

Why are you still posting on here CrackHead/Eternal Insolent/Cryptcracker?  Seriously, why do you think anyone believes you?  We all know you are a troll.  Although it is slightly amusing to see what you will come up with next so we can have a good laugh.

Let's spell it out for THEM:

@Cryptocracker, your 15 minutes of Fame are over.

 

Wading into "Infamy" now.

 

[Fontas Returns]

Here's why I don't think Vern is going to just bail and ignore the lawsuit: The lawyers are going after everything, including his kids' home and his ex wife's money. When he sends her the alimony, they'll take that. He would completely be cut off from his kids, etc. He'll never be able to spend the bulk of the coins if he did steal them, and his credit and reputation will be completely ruined. And if he did get caught up in a chinese financial criminal case he could do months in Chinese jail without being charged for a crime compared to in America he can plead the fifth and have at least some pretense of some "due process" and if he goes to jail in America he'd probably do maybe a year in club fed compared to getting beat by hammer-weilding crazed commies in a moldy Chinese Gulag it's probably not quite AS bad. Really if you think about it there's plenty of incentives for him to NOT do the "run away to China and hope to not get sent to Commie Camp" scenario. He's taking a big risk to do so. Their financial laws are pretty strict, he's probably doing illegal stuff according to China "laws" as it is anyway by selling coins on local bitcoins, running a financial scam out of china. Remember, he sent out false tweets when he was based out of China, so he's had an ongoing fraud he's kept running AFTER moving to china, so simply running away to China doesn't necessarily keep him out of jail. And if he does go to jail, he could literally be tortured or forced into commie labor camps etc. Plus he's probably ripped off some Chinese whales, he could just as easily get into trouble in China.

[Fontas Returns]

Also, think how this could play out: Not only can Vern lose everything, but he can take others down with him too. As it is Cryptsy Jim, Horus, Jon McPherson, Nerd Liffe, all these people are eventually going to be served with subpoenas or deposition notices and get called in for questioning. They could possibly become defendants in civil and criminal actions as well. Somehow I don't think Vern will leave them all to asnwer for his mess. Eventually, the lawyers might figure they can try to take Jim's farm and pigs, or who knows. It's not just Vern that will have to answer for this.

Realistically, "Run away to china" is not a viable "out" from Vern's perspective.

His only viable outs are 1sell Cryptsy or
2get the coins back.

And to do it fast before the legal processes make it where he is stuck in a stalemate situation where Cryptsy goes into bankruptcy/receivership.

[suchmoon]

Also, think how this could play out: Not only can Vern lose everything, but he can take others down with him too. As it is Cryptsy Jim, Horus, Jon McPherson, Nerd Liffe, all these people are eventually going to be served with subpoenas or deposition notices and get called in for questioning. They could possibly become defendants in civil and criminal actions as well. Somehow I don't think Vern will leave them all to asnwer for his mess. Eventually, the lawyers might figure they can try to take Jim's farm and pigs, or who knows. It's not just Vern that will have to answer for this.

Realistically, "Run away to china" is not a viable "out" from Vern's perspective.

His only viable outs are sell Cryptsy or get the coins back.

You're saying Vern would not leave his pals holding the bag? 'Cause he seems to have done exactly that.

Also the family and kids thing doesn't seem to be high on his priority list, what with the new "paramour" etc.

$10m is a good amount, sufficient for a fairly comfortable life and not large enough for the US.gov to send John Rambo after him.

[Fontas Returns]

They don't have to, he can easily be indicted/sued in China in their less forgiving system. He could get himself into a worse sort of trouble in China, really, without the US government even being involved. They're pretty strict on fraud over there. Here you can just plead the fifth and at least you don't get sent to a black site where they wack you with a 2x4. At least usually not for white collar stuff.

[CartmanSPC]

His only viable outs are 1sell Cryptsy or

Absolutely no one will buy Cryptsy outright. If it goes into receivership (has it already?) then he (the appointed receiver) will sell whatever assets are in the company for whatever he can get or (unlikely) open it back up for business. Absolutely no one will buy the debt.

The only real assets are the site code. I give that a value of 100K tops...probably more like 20K IF you can even find a buyer for it.

Don't fool yourself it believing someone will come in and buy the whole thing and be indebted to the users for over 10mil.

I realize most people have no idea what it means for a company to go into receivership so if you are interested look it up.
https://en.wikipedia.org/wiki/Receivership

If the company’s assets are able to cover the debt owed then they may be able to continue operating after receivership, but this is more of a rare exception than the standard. In most cases the insolvent company is too far behind to cover their liabilities using only their assets, at which point the business must be completely liquidated and dissolved in order to repay as many secured debts as possible.

When the company (Cryptsy) gets put into receivership Paul is out of picture in it's operation and/or liquidation. I don't know what legal trouble he will be in at that point but I'm sure it cant be good.

Edit: Believe it or not I doubt Paul will face any jail time for his gross negligence running Cryptsy but ignoring this mess will not help.