Cryptsy Hack Resolution - 3rd dispatch posted

[aardvark15]

why Paul no reply to my email or pm me ? having second thoughts .

send an email to reward@cryptsy.com and show proof you have the coins.
Then paul will talk to you

Cryptsy_Jim,

So this agreement with Cryptcracker was a scam right?  I think it's safe for us to assume that.

Not counting it out just yet.  Will give it a little time.  But as of yet he has produced nothing.

We have to explore any "possibles".  Maybe hes the hack. Maybe he knows the hack and is cutting a deal with him. Who knows.
We just want the coins back so we can make things right with users.

The title of the post is "Funds to be recovered immediately once deal finalized".  I don't think this is immediately.

[Gleb Gamow]

Off to bed. Somebody else watch https://blockchain.info/tx/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf

In 8 hours I'll blow my brains out if a single satoshi is moved.

I have to admit that I would've had to concocted a lie as to why I didn't blow my brains out if satoshis were indeed moved. Something along the lines...

Some may ask why I didn't blow my brains out after satoshis were moved, and the answer is that I just didn’t know what happened, didn’t want to cause panic to my fellow Bitcoiners, and were unsure exactly how to blow my brains out.   At one time I had a open communication with the Secret Blowing Brains Out Society on an unrelated matter, but I think we all know what happened with them – so they were no longer an entity I could resort to for this.    Recently I attempted to contact its Miami Chapter, but they instead directed me to the IC4Lights website.  I’ve not heard anything from them, probably because it's a Sunday.

[Gleb Gamow]

What if they told you there was no hack?

The updated lawsuit reads: “Upon information and belief…the millions of dollars in customer assets that “disappeared” in June 2014 are not missing; they were taken by the CRYPTSY Defendants… to pay for their own business and personal expenses, including all-cash-purchase of a $1,374,881 waterfront mansion in Palm Beach County, Florida in March 2015.

Try July 2014, not June 2014. If you were a lawyer, you wouldn't be making these silly mistakes.

[BlindMayorBitcorn]

What if they told you there was no hack?

The updated lawsuit reads: “Upon information and belief…the millions of dollars in customer assets that “disappeared” in June 2014 are not missing; they were taken by the CRYPTSY Defendants… to pay for their own business and personal expenses, including all-cash-purchase of a $1,374,881 waterfront mansion in Palm Beach County, Florida in March 2015.

Try July 2014, not June 2014. If you were a lawyer, you wouldn't be making these silly mistakes.

If I was a lawyer I'd have fancier shoes.

[Gleb Gamow]

What if they told you there was no hack?

The updated lawsuit reads: “Upon information and belief…the millions of dollars in customer assets that “disappeared” in June 2014 are not missing; they were taken by the CRYPTSY Defendants… to pay for their own business and personal expenses, including all-cash-purchase of a $1,374,881 waterfront mansion in Palm Beach County, Florida in March 2015.

As cynical as I am about the "hack" itself, this money couldn't have come from the bitcoin which has been sitting in these wallets all this time. It's obviously untouched.
Of course there is no telling how much they made in profits over this time..they may well have enough to cover this 11,300 in any case.

Profits from what?

Before I said I was looking to get 30% of the recovered funds as a bounty but now I have changed to a more fair 3/4 of profits.

Notice Jim Slockney didn't ask that question when it was penned in the OP of this thread.

Cryptcracker: I demand a percentage of the profits.
Jim and Paul: Game on! We'll draw up the contract.
BlindMayorBitcorn: Blah, blah, blah, profits.
Jim: What profits?

[Gleb Gamow]

What if they told you there was no hack?

The updated lawsuit reads: “Upon information and belief…the millions of dollars in customer assets that “disappeared” in June 2014 are not missing; they were taken by the CRYPTSY Defendants… to pay for their own business and personal expenses, including all-cash-purchase of a $1,374,881 waterfront mansion in Palm Beach County, Florida in March 2015.

Try July 2014, not June 2014. If you were a lawyer, you wouldn't be making these silly mistakes.

If I was a lawyer I'd have fancier shoes.

...that I would kiss.  BTW, I am well aware that it was the silly lawyer that mistakenly on several occasions penned June instead of July on the docs now in the hands of a judge.

[Gleb Gamow]

What if they told you there was no hack?

The updated lawsuit reads: “Upon information and belief…the millions of dollars in customer assets that “disappeared” in June 2014 are not missing; they were taken by the CRYPTSY Defendants… to pay for their own business and personal expenses, including all-cash-purchase of a $1,374,881 waterfront mansion in Palm Beach County, Florida in March 2015.

As cynical as I am about the "hack" itself, this money couldn't have come from the bitcoin which has been sitting in these wallets all this time. It's obviously untouched.
Of course there is no telling how much they made in profits over this time..they may well have enough to cover this 11,300 in any case.

Profits from what?

running the exchange for several years

It was profitable for a time. But ran in red for the past several months. There were layoffs, office closure and other cost cutting actions taken just to try to keep it open.

Theres been no trading and withdrawals are at minimum right now so im not sure how you figure there's profits

Exactly how is a party commissioned to ONLY handle support so versed in the profitability of an entity he's under contract with?

Recall, according to BitJohn, you and your team were hired and trained by BJ to handle support, with you and your team coming from another entity owned by Paul Vernon, this taking place circa Q3, 2013. Ironically, said support entity was declared defunct in January 2013 by Paul Vernon which this nutter - ME - has fully documented.

[Gleb Gamow]

I too am negotiating a contract with Big Vern and Stinky Long, for a bounty for the resurrection and return of Generalissimo Francisco Franco. Despite all rumors and evidence to the contrary, Big Vern not only has Gods-like powers but is accessible and open to negotiations of any sort. Stay tuned while I make history right before your very eyes...

[Gleb Gamow]

why Paul no reply to my email or pm me ? having second thoughts .

send an email to reward@cryptsy.com and show proof you have the coins.
Then paul will talk to you

Cryptsy_Jim,

So this agreement with Cryptcracker was a scam right?  I think it's safe for us to assume that.

Not counting it out just yet.  Will give it a little time.  But as of yet he has produced nothing.

We have to explore any "possibles".  Maybe hes the hack. Maybe he knows the hack and is cutting a deal with him. Who knows.
We just want the coins back so we can make things right with users.

The title of the post is "Funds to be recovered immediately once deal finalized".  I don't think this is immediately.

Wait till they define Funds. I'm leanin' toward Funsy.

[outatime1]

It sounds like this was just a hoax.  I don't think they fooled many people though.  It was probably cryptsy that did it as a distraction.

[Gleb Gamow]

It sounds like this was just a hoax.  I don't think they fooled many people though.  It was probably cryptsy that did it as a distraction.

Paul: Hello, Jim, Paul here.
Jim: What's up, man?
Paul: Dude, I have over U$10M and I'm bored. Suggestions?
Jim: Hmmm. That's tough being a Saturday and all. Hey, let's fire up Cracksy or whatever you him.
Paul: Dude, that'll be so much fun. Fuck with the people we've stolen from.
Jim: Cool! I'm not doin' much myself with Ginny out back fuck the pigs and all. Let's roll!
Paul: Wait, what happens with Gleb joins the convo?
Jim: Sec, while I check my word Rolodex. Got it! I'll play the "Nutter" card.
Paul: Excellent! Meanwhile, find a convincing anagram for Lorie Ann Nettles so to introduce another character in our Funsy.
Jim: You are so bad!

[Gleb Gamow]

https://www.docdroid.net/HRCBL8f/cryptsyrecoverybountyfinal.pdf.html

4. The recovery of the Bitcoin is the primary concern so it will receive attention ahead of the recovery of other coins. The recovered Bitcoin is to be sent to First
Party owned Bitcoin address: ​1Mr4WJMQCXs9WtvHTwafQnXbtSXCMc9eSr within a maximum of 3 hours of receiving the Bitcoin the First Party is to
send 1750 Bitcoin or %13.46154 of the recovered funds to Second Party
owned Bitcoin address: 1H9utcaSkwstmP4qFgoE3HyBjkM1oeFTLK

Hacker: Hey, Paul, are you sleeping? I wanna make sure you're awake when I sent the millions back so that you can uphold your end of the deal in paying the bounty within 3 hours.
Paul: You're such a fair dude!

[Phildo]

why Paul no reply to my email or pm me ? having second thoughts .

send an email to reward@cryptsy.com and show proof you have the coins.
Then paul will talk to you

Cryptsy_Jim,

So this agreement with Cryptcracker was a scam right?  I think it's safe for us to assume that.

Not counting it out just yet.  Will give it a little time.  But as of yet he has produced nothing.

We have to explore any "possibles".  Maybe hes the hack. Maybe he knows the hack and is cutting a deal with him. Who knows.
We just want the coins back so we can make things right with users.

What have the authorities said about this deal? Or about anything really? What have you done to get the coins back besides sign a contract written by a random person who sent you a tweet?

[Gleb Gamow]

why Paul no reply to my email or pm me ? having second thoughts .

https://bitcointalk.org/index.php?action=profile;u=93918

Name:   bigvern
Posts:   100
Activity:   100
Position:   Member
Date Registered:   April 06, 2013, 09:29:52 AM
Last Active:   February 11, 2016, 08:18:31 AM

May I suggest try sending a PM a few seconds prior to February 11, 2016, 08:18:31 AM (CST)?

What have the authorities said about this deal? Or about anything really? What have you done to get the coins back besides sign a contract written by a random person who sent you a tweet?

We do, however, fully comply with our Federal MSB requirements.  This includes filing SAR (Suspicous Activity Reports) and CTR (Currency Transaction Reports).  We also have one of the most extensive KYC programs in the industry, scrub accounts against the OFAC list, and perform Transaction Monitoring.   At a federal level, we are compliant.
  
Federal compliance is the only claim we have ever made and will make.


https://www.fincen.gov/

If a weekend, permission is hereby granted to form partnerships and draw up contracts with hackers if the stolen amount is less than U$20M.

[Gleb Gamow]

From the desk of There's More Than One Nutter On This Planet:

http://siliconangle.com/blog/2016/03/13/rofl-cryptsy-offers-bounty-for-the-return-of-stolen-bitcoin-in-latest-piece-of-absurd-theatrics/

Just when it was thought the saga of failed Bitcoin exchange Cryptsy (Project Investors, Inc.) couldn’t get any more absurd, it has, with the founder of the company offering a reward to a hacker who is alleged to have stolen funds from the exchange.

Founder and Chief Executive Officer Paul “Big Vern” Vernon has posted a contract (pdf) titled “Cryptsy Recovery Bounty Final” on the Cryptsy website that promises to pay 1750 Bitcoin ($725,000) to “Cryptcracker,” the alleged hacker of 13,000 Bitcoin ($5.38 million) from the site should he or she return them.

The contract (we use the term loosely) also promises a further reward of 250 Bitcoin ($103,000) should the 247,000 Litecoins ($817,600) allegedly stolen be returned as well.

Vernon claimed in January that trojan malware was inserted into Cryptsy’s code by the developer of Lucky7Coin giving access to the company’s wallets, but more remarkably claimed this had occurred 18 months prior in 2014. Instead of letting customers know what had happened, they had decided to continue trading in an effort to work their way back to solvency. Even more funnily, Vernon claims to have never reported the theft to authorities, as he didn’t know to whom to report it.

Since that announcement it has since been all but confirmed that the hacking story is a complete lie, with a copy of an affidavit Vernon made to a Florida divorce court in December being revealed where he stated under oath that the exchange had been able to stay afloat thanks to fee income, but that profits had dried up, leading to the exchange’s collapse.

In his own words:

“Due to downturn in profits, not currently taking a salary, expect corporation to dissolve due to economic conditions.”

Vernon, and his now ex-wife are currently subject to a class-action lawsuit that suggests that the alleged hack is nothing more than a poorly masked ploy of their efforts to move assets away from Cryptsy before the company officially went under; of particular note, and despite the alleged hack taking place in 2014, Vernon made an all-cash purchase of a $1,374,881 waterfront mansion in Palm Beach County, Florida, in May 2015.

ROFL

Even if we pretend to believe Vernon’s claim that the site was hacked, the bounty contract is nothing more than pure theatrics because it’s highly unlikely the contract would be valid to begin with, particularly when the person to whom the “bounty” was being offered isn’t even listed properly on the contract to begin with. Cryptcracker may be a pseudonym for a group, not an individual, and even then, if they had stolen the funds, why would they want to return them? After all, it’s not as if Big Vern has reported the theft to authorities.

Perhaps what’s also a little sadder in this absurd tale is that many members of the Bitcoin press are taking this offer seriously without even the slightest bit of investigation into the background, with one actually going as far as writing:

One silver lining to the whole episode is that if this all goes well then the funds will actually be back in Cryptosy’s posession [sic]. So it’s good that the customers will get their money back, that is the most important [sic].

ROFL, it’s not going to happen.

If you’ve been a victim of Paul Vernon’s Cryptsy Bitcoin exchange scam and haven’t joined the class action lawsuit yet, contact the good folks at Wites & Kapetan, P.A. and get you name added to it.

[Gleb Gamow]

http://www.bitcoinfuturesguide.com/bitcoin-blog/cryptsy-makes-deal-with-hackers-to-return-stolen-13000-btc-pays-13-fee-to-the-culprit

The anonymous hacker is called "Cryptcracker" (probably a group) and the individual who signed the contract appears to have written "Wrecker" or "Wrecked".

Eternal Insolent = Lorie Ann Nettles (think homewrecker)

Hell hath no fury like a woman scorned.

~ William Congreve

You figured it out yet, Jim Slockney and Paul Vernon, or am I simply being a nutter again?

[Cryptcracker]

Consulting lawyer to make sure nothing gets in between me getting paid my bounty when coins are recovered.

[suchmoon]

Consulting lawyer to make sure nothing gets in between me getting paid my bounty when coins are recovered.

Where was your lawyer when you were signing that ridiculous contract? 

[CartmanSPC]

Consulting lawyer to make sure nothing gets in between me getting paid my bounty when coins are recovered.

Don't worry. Paul is an "up and up" guy. He wouldn't do you wrong. 

[aardvark15]

Consulting lawyer to make sure nothing gets in between me getting paid my bounty when coins are recovered.

Sure.  What happened to "Funds to be recovered immediately once deal finalized"?  We know the routine.  Same story, different day.