delete

[Slingshot]

Why the hell is grandcoin gone without warning?

 Don't know. Maybe it forked...

 Figure it out!

[achillez]

We do not operate with fractional reserves.    Any exchange that does that will never get licensed.    Part of getting licensed is having the financials audited, including customer held funds.  I have to assume that any coin can and will have a "bank run" at some point.   I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit.   If you want to move all funds out, then they are there to move.   They may, however, need to be moved from our offline wallet to the hot wallet first.

Any overwithdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back).   These issues are rare and getting rarer.

Paul
BigVern

... and this is why Cryptsy is one of my favorite exchanges.

[kaito]

Is there any doubt left that Cryptsy is operating off very limited funds.

Yes. I still have all my doubts.

[YoyodyneSystems]

I lost a ton because they started holding my funds during the crash. Now they will not cancel my withdrawal so I cannot even use them.
I've lost 3x now.

So I have been going all night typing everywhere I can until I get my funds back. I used them exclusively and defended
them left and right. Now I am burned.

So I have my hands... I will type non-stop on every site - forum.. everywhere. 20 years of marketing online put behind it.

So disturbed and pissed now.

And yes they are holding many thousands of peoples funds and deleting peoples tickets.

[led_lcd]

We do not operate with fractional reserves.    Any exchange that does that will never get licensed. 

Where is Cryptsy licensed to operate (or where is Cryptst intending to obtain a license)?

[Wipeout2097]

Could you guys provide EVIDENCE of what you are claiming?

[mullick]

I have pmed a lot of users on here who are having withdrawal issues and most have not responded over the last 24 hours. If you are please PM me either the email used or your username and I can investigate and get it sorted out for you

We will get to all open support tickets and get them resolved.

[stink]

My testing leads me to believe they were using fractional reserves. I am working on a document now.
I think they may have moved away from this or are moving away from this currently.... this one I will need help to test.
This would also explain why they would support autodump to keep downward pressure on the markets so they would not need to cover.
A dumb question... couldn't they be transparent in providing the wallet address'?

Color coins are now needed to decentralize the exchanges.

[HappyComplex]

Don't know how anyone could say they didn't have fair warning

[AlexGR]

When I saw the situation where people's deposits weren't getting the ok for withdrawal (especially after knowing 2 cases of whales who experienced massive issues), I wrote this:

I £^%$%$ am! That shit creeps in anywhere it can find the slightest opening and the exchanges are so wide open to it the make a barn door look small. I'd love to give cryptsy the benefit of the doubt but if they had full reserves there's be absolutely no issue with withdrawals, their business would suffer with these claims but delays kill confidence and they'd do everything in their power to avoid them.

The thought they might be running a fractional reserve scheme has crossed my mind. The question is, in such a scenario, what have they done with people's BTC? And, if the BTC market is oversold due to the fractional reserve practices where BTCs are "supposed" to be in cryptsy, but they have been loaned or sold to pressure price, then what does that mean for BTC's price when clients come back knocking for their BTC?

I'm still wondering whether they could have taken a big BTC stash from their exchange, shorted BTC in another exchange, sold coins, made a self-fullfiling prophecy / market manipulation in absence of serious buying support and then locked profits. But if they had done so, they'd still have the BTCs (and the profit). So what the hell have they done with the BTCs?
 

[Blawpaw]

Damn. This sucks. I can't withdraw my funds from there. I just hope that they can solve their issues and that we can retrieve our funds.

[XMRpromotions]

Cryptsy has had a long time to publicly address these allegations. Their silence means a lot to many of their former, current and prospective customers.

This should be a reminder to everyone that currencies should not rely on a single exchange and that customers should never trust 3rd parties with a large amount of deposits over a long period.

[bhokor]

I think there are 2 possibilities, first they have been hacked and are trying to hide it or really they were using the fractional reserve and now they are broke

[RaginglikeaBoss]

I think there are 2 possibilities, first they have been hacked and are trying to hide it or really they were using the fractional reserve and now they are broke

I love how this thread was nercro'ed.

But, they appear to have been doing something fishy for quite some time.  Being hacked isn't likely, but I have always had the feeling (no evidence, hence a feeling) that they have been meddling in fractional reserve trading.  I mean, it's a hugely profitable tactic, but if people rush to withdraw it can cause chaos.  Hence, the massive withdraw issues they have been having - especially in the past two weeks.

[entertheabyss]

Another possibility is it could that they had a database failure of some kind and their accounting system is FUBAR, now they have no choice but to manually verify all withdrawal requests. Not saying that this is the case, but it is an often overlooked possibility. Still they have been fucking up long before this withdrawal fiasco, I would not recommend using them for many other reasons.

[Spoetnik]

be carefull with that kind of exchanges. i never traded there but heard that they had some problems. Fractional reserving is a no go. also try other exchanges (maybe better ones) like  www.coins-e.com

You mean the one that was hacked via it's chatbox then later shutdown ? R O F L

EDIT:
Ahh never mind i think i was thinking of the other one with the name "coin" in the title..
The one you mentionrd had the hidden order books for max coin on launch LOL

[Spoetnik]

Another possibility is it could that they had a database failure of some kind and their accounting system is FUBAR, now they have no choice but to manually verify all withdrawal requests. Not saying that this is the case, but it is an often overlooked possibility. Still they have been fucking up long before this withdrawal fiasco, I would not recommend using them for many other reasons.

BigVern is just too busy in China setting up a Chinese version of Cryptsy.
Meanwhile..
While you all wait.. recent ties to a BTC account with 6 million usd in Bitcoin was uncovered.

They prepped for a grand Goxx'ing.

[The Sceptical Chymist]

Of course they are operating on fractional reserve.

Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs

I'm an ignoramus about a lot of things related to bitcoin:  Were these hacks and bugs officially announced at any point?  It seems like no one who uses Cryptsy knows what the hell is going on there, and their staff certainly isn't communicating.  It's gonna be Gox all over again.

[Spoetnik]

Of course they are operating on fractional reserve.

Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs

I'm an ignoramus about a lot of things related to bitcoin:  Were these hacks and bugs officially announced at any point?  It seems like no one who uses Cryptsy knows what the hell is going on there, and their staff certainly isn't communicating.  It's gonna be Gox all over again.

yeah hacks & bugs have been acknowledged by Cryptsy endlessly all along all over Crypto by every staff member.
Not sure where the fuck you been..

don't believe me then just go look around.

..hurry though some of them are frantically running around deleting topics.. blanking them out & locking them.

[shanem]

Cryptsy is trying to prevent people from withdrawing especially the large holders. I believe that Cryptsy already anticipated this which is why they changed the trading fee structure to a withdrawal fee. This is to encourage people to trade on Cryptsy without withdrawing. Now many people are withdrawing as the withdrawal delays get longer and longer.