★ ZEIT ★ [COMMUNITY & KNIGHTS] [ULTRA LOW INFLATION] [MICRO-PAYMENTS]

[d-trix]

Here the Cryptsy Story , in the Believe it or Not News!
http://blog.cryptsy.com/
______________________________________________________________________

Announcement

Cryptsy has had problems for some time now and it’s time to let everybody know exactly why.  These problems were NOT because of any recent phishing attacks, or even a ddos attack, nor does it have anything to do with me personally.

About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies.   After a period of time of investigation it was found that the developer of Lucky7Coin had placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit.   This Trojan had likely been there for months before it was able to collect enough information to perform the attack.  It does not appear that this was the original developer for LK7, as on 5/22/2014, we received this message from the new developer who wanted to maintain the codebase:

—

Hello,

Lucky7Coin is not maintained and I would like to take care of it. I have announced that on bitcointalk.org in Lucky7Coin thread. You’re the only exchange for this coin and I hope you will let me take care of it. I’m responsible. You don’t have to be afraid of errors or forks. I’m developing multipool and I know bitcoin internals and protocol.

https://bitcointalk.org/index.php?topic=295157.msg6861797#msg6861797

For a start I’ve changed irc network, so clients could synchronize blockchain. Please upgrade as soon as you can.

Github repo:
https://github.com/alerj78/lucky7coin

Branch “master” will always be for stable version, branch “devel” could be dirty. In a 2-3 weeks I’ll release new version with p2pool support and checkpoints. Before that I’ll contact you to check few blocks hashes for checkpoints and make sure there is no fork.

I hope we can cooperate and make this coin live again!

Jack

—

These are the approximate figures taken:
Bitcoin:  13,000 BTC
Litecoin:  300,000 LTC

This of course was a critical event for Cryptsy, however at the time the website was earning more than it was spending and we still have some reserves of those cryptocurrencies on hand.   The decision was made to pull from our profits to fill these wallets back up over time, thus attempting to avert complete closure of the website at that time.   This worked fine for awhile, as profits decreased due to low volume and low Bitcoin prices, we would adjust our spending accordingly.  It wasn’t until an article from Coinfire came out that contained many false accusations that things began to crumble.   The article basically caused a bank-run, and since we only had so much in reserves for those currencies problems began.  

Our current customer liabilities for BTC is around 10,000 BTC, so as you can see we would like to see the Bitcoins returned for both our users and for ourselves.

Here are the transaction details from the Bitcoin wallet:

https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

As you can see,  2014-07-29 13:17:36 is when the event occurred.   A very interesting fact here, however, is that those Bitcoins have not moved once since this happened.    This gives rise to the possibility they can be recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.

If you happen to be the perpetrator of this crime, and want to send the coins back no questions asked, then you can simply send them to this address:  

1KNi4E4MTsF7gfuPKPNAbrZWQvtdQBTAAa

If they are returned, then we will assume that no harm was meant and will not take any action to reveal who you are.  If not, well, then I suppose the entire community will be looking for you.

Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting.   At one time we had a open communication with Secret Service Agent Shaun Bridges on an unrelated matter, but I think we all know what happened with him – so he was no longer somebody we could report this to.    Recently I attempted to contact the Miami FBI office to report this, but they instead directed me to report it on the I3C website.  I’ve not heard anything from them.

I think the only real people who can assist with this are the people of the Bitcoin community itself.

Trades and withdrawals will be suspended on the site indefinately until some sort of resolution can be made.

Here are our options:

1. We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements.

- or –

2. Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.

- or –

3. If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.

I’m obviously open to any other ideas people may have on this.

    Jan 14th, 2016
_______________________________________________________________________________ __________________________________________

Funny he announces this after They get hit with a Class Action Suit.  

When the Real Truth comes out, I bet it includes FAST CARS , FAST WOMEN ,  White Powder , and maybe a Yacht or 3.  

Cryptsy got caught up with lame excuses nowhere left to hide now.

[Varvarin]

...
Cryptsy got caught up with lame excuses nowhere left to hide now.

Said that 2 months ago. My Zeits are not Craptsied

[LionOfNarnia]

I take little pleasure in being proved right, but as y'all know I've been in the anti-crapsy camp since they fucked us over back in spring 2014.

I've had ZERO coins on there since, and everybody with an ounce of sense hasn't either.

S'pose what I'm saying is "Don't expect any sympathy from me if you got burned."

[uki]

I take little pleasure in being proved right, but as y'all know I've been in the anti-crapsy camp since they fucked us over back in spring 2014.

I've had ZERO coins on there since, and everybody with an ounce of sense hasn't either.

S'pose what I'm saying is "Don't expect any sympathy from me if you got burned."

I also got burned back then. Finally got my coins after more than three weeks and than gave them one more chance. It was like playing with fire.
As soon as I heard about other people having problems with their transfers being stuck, I stopped trading there and withdrew all coins. That was mid-2015, and since then I was on the sidelines, watching how it goes worse and worse. Already back then I started calling for some alternative exchanges for ZEIT, but most of the knights seem happy with what we have. Don't understand me wrong, I am strongly AGAINST any exchange that request a fee to list you, but I really believe we need an exchange with SIGNIFICANT volume, to get more people into ZEIT. . Otherwise (sorry kiklo, don't take it personal) we will be vegetating and posting how happy we are that the daily volume exceeds 1BTC in one day out of six months (as recently happened to yobit.net).

[LionOfNarnia]

Some 'bigger picture' stuff that may have an impact on us...

https://medium.com/@octskyward/the-resolution-of-the-bitcoin-experiment-dabb30201f7#.mvldlypk1

(Snip)

But despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly. The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards. I will no longer be taking part in Bitcoin development and have sold all my coins.

Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have broken down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system.

Depressing, yes, but burying heads in sand won't solve anything

[uki]

Some 'bigger picture' stuff that may have an impact on us...

https://medium.com/@octskyward/the-resolution-of-the-bitcoin-experiment-dabb30201f7#.mvldlypk1

(Snip)

But despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly. The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards. I will no longer be taking part in Bitcoin development and have sold all my coins.

Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have broken down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system.

Depressing, yes, but burying heads in sand won't solve anything

He has been quite negative about Bitcoin for a longer while already. If you scroll in his blog: https://medium.com/@octskyward/ (which is btw. a must read for these really interested in Bitcoin), you may see that his disbelief has been growing in the last year or more. It is a real pity to see he is gone for good, but the real core of the idea behind Bitcoin is that it is not dependent on a single person and the life may continue afterwards.

[kiklo]

I also got burned back then. Finally got my coins after more than three weeks and than gave them one more chance. It was like playing with fire.
As soon as I heard about other people having problems with their transfers being stuck, I stopped trading there and withdrew all coins. That was mid-2015, and since then I was on the sidelines, watching how it goes worse and worse. Already back then I started calling for some alternative exchanges for ZEIT, but most of the knights seem happy with what we have. Don't understand me wrong, I am strongly AGAINST any exchange that request a fee to list you, but I really believe we need an exchange with SIGNIFICANT volume, to get more people into ZEIT. . Otherwise (sorry kiklo, don't take it personal) we will be vegetating and posting how happy we are that the daily volume exceeds 1BTC in one day out of six months (as recently happened to yobit.net).

No Worries, at my old age I am hard of hearing , LOL  

UKI , one of the great things about the Knights is that we are all very Opinionated , and we can always count on each other to Voice their Honest Opinion in open forum.
That is what is so refreshing about ZEIT and you fellow Knight.  

Here is our current status, maybe you will see something I am missing.
Ray our Amazing Dev , does the programming and maintains & funds the website at his own cost.
I monitor the Block Explorers, keep a snapshot for download and make sure Chainz stay funded.
Lion's Presence alone has the fudders seem extinct in the ZEIT forum , while they run rampant in other forums.

All of the Knights give Value to ZEIT , by holding 100 million, and give support in ways we have yet to discern.
The ZEIT Community striving to become Knights or just trading on the exchange provide valuable services.

You Sir UKI,
will no matter how high a status ZEIT achieves in the Future, always point out possible cracks in our foundation in an effort to make ZEIT stronger.
IMO, Our current 3 exchanges will grow into what you are looking for.

However , We are a round table, and I am willing to fight alongside or follow my fellow Knights into any battle, whichever they prefer.
So in your opinion, what exactly do you want to see in a ZEIT exchange, give estimated numbers for volume and any other criteria you deem pertinent.
Then pick an exchange , that you believe will meet these numbers, then You can contact them and see what is required.
We then place the requirements on the forum and see if the community wishes to make it so , understanding that any requiring payment , will depend on your ability to convince others to join this course of action. If enough agree to your choice and are willing to pay, go ahead and put me down for $50 towards your venture, payable when you have received enough pledges to cover the rest of the required costs.  

 

[kiklo]

Some 'bigger picture' stuff that may have an impact on us...

https://medium.com/@octskyward/the-resolution-of-the-bitcoin-experiment-dabb30201f7#.mvldlypk1

(Snip)

But despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly. The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards. I will no longer be taking part in Bitcoin development and have sold all my coins.

Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have broken down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system.

Depressing, yes, but burying heads in sand won't solve anything

  Not Depressing at all, IMO .

If BTC fails or has a massive stumble with a massive price reduction,.
ZEIT will Soar to new Heights using BTC flaws to Power Our Flight, which is what will happen in the long run anyway.
On the Technical Side we have always been stronger and faster than BTC.
Old saying, every Crisis is an Opportunity, We'll make the BTC crisis a ZEIT Opportunity.
Cause I can promise you this if BTC price falls down to a $1 ,  there will not be 1 ZEIT for sale for less than that.   

 
 

[Varvarin]

Some 'bigger picture' stuff that may have an impact on us...

https://medium.com/@octskyward/the-resolution-of-the-bitcoin-experiment-dabb30201f7#.mvldlypk1

(Snip)

But despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly. The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards. I will no longer be taking part in Bitcoin development and have sold all my coins.

Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have broken down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system.

Depressing, yes, but burying heads in sand won't solve anything

  Not Depressing at all, IMO .

If BTC fails or has a massive stumble with a massive price reduction,.
ZEIT will Soar to new Heights using BTC flaws to Power Our Flight, which is what will happen in the long run anyway.
On the Technical Side we have always been stronger and faster than BTC.
Old saying, every Crisis is an Opportunity, We'll make the BTC crisis a ZEIT Opportunity.
Cause I can promise you this if BTC price falls down to a $1 ,  there will not be 1 ZEIT for sale for less than that.  

 
 

I haven't had this much fun in crypto since August last year and could not have timed it better. 10 days to pay day, everything cheap, BTC crashing to $315 most likely within a week .. happy days.

Here .. Blackmore´s Night - 3 Black Crows - https://www.youtube.com/watch?v=OnaqBcxvH_A

3 black crows were sitting on a fence
 Watching the world pass them by
 Laughing at humanity and it's pretense
 Wondering where next to fly...

[atronite]

This is really sad that Cryptsy will likely declare bankruptsy, this only hurts the altcoin community. I had about .22 BTC on there for a trade when this happened, but this was pure trading profits. Still upsetting though since I still lost 22m Zeitcoin.

[bhokor]

This is really sad that Cryptsy will likely declare bankruptsy, this only hurts the altcoin community. I had about .22 BTC on there for a trade when this happened, but this was pure trading profits. Still upsetting though since I still lost 22m Zeitcoin.

I lost money some time ago in bter. com, i learned the hard lesson, have coins in a exchange is a quite high risk, exchanges are only for trading but probably the worst site for store the coins

[presstab]

What is the typical RAM and CPU use everyone is seeing for ZEIT?

[gregofdoom]

What is the typical RAM and CPU use everyone is seeing for ZEIT?

In my CPU 10-12%, sometimes up to 25% and 900MB RAM  

update:

i7 4,5Ghz Skylake, 16GB RAM, running 20 wallets, 50 pages in Chrome and some in Firefox ...

[kiklo]

What is the typical RAM and CPU use everyone is seeing for ZEIT?

On Quad Processor with a staking wallet,
Cpu average varies between 4% &10%
Ram 987,828 k
With ~50 Active network connections running

 

[LionOfNarnia]

What is the typical RAM and CPU use everyone is seeing for ZEIT?

On Quad Processor with a staking wallet,
Cpu average varies between 4% &10%
Ram 987,828 k
With ~50 Active network connections running

 

I'm running around 13% (i7-3770) & 924k with 17 connections.

[atronite]

This is really sad that Cryptsy will likely declare bankruptsy, this only hurts the altcoin community. I had about .22 BTC on there for a trade when this happened, but this was pure trading profits. Still upsetting though since I still lost 22m Zeitcoin.

I lost money some time ago in bter. com, i learned the hard lesson, have coins in a exchange is a quite high risk, exchanges are only for trading but probably the worst site for store the coins

I'm guessing you never get them back.

This, my friend, is why we have government regulation of financial institutions. And government regulation is why financial institutions get involved in politics (to make sure the regulations are made in a way that suits them).

[kiklo]

FYI:
Anyone Selling ZEIT

SouthXchange sell walls have been annihilated up to 324.

Please refill as the ZAMPIRES are still Hungry!  


 

[Varvarin]

Cryptsy won't declare bankruptcy. If they managed to stay open for 18 months pretending like nothing happened, they can continue. We are not talking Gox 450k BTC, Bitstamp lost 18k BTC and nothing happened, but they had that money already, BTER was taken for 7k BTC, is back to work like nothing happened.

The "community" will ask them to remain open and repay over time, or most likely the 13k btc will make it's way back, 1000 btc ransom paid and loss will be 1000btc to spread over users.

Gentlemen place your bets. I did a week ago days before the shutdown; $100 in various coins (not Zeit mind you) paid for HYP to sell at double to buy DASH under 600k, if Crypty comes back and Dash keeps pumping, $700 win .. to spend on Zeit  

[uki]

What is the typical RAM and CPU use everyone is seeing for ZEIT?

at least 825MB RAM and about 10% CPU, with 12 active connections. Running it on a VM with Win7.

[uki]

Cryptsy won't declare bankruptcy. If they managed to stay open for 18 months pretending like nothing happened, they can continue. We are not talking Gox 450k BTC, Bitstamp lost 18k BTC and nothing happened, but they had that money already, BTER was taken for 7k BTC, is back to work like nothing happened.

The "community" will ask them to remain open and repay over time, or most likely the 13k btc will make it's way back, 1000 btc ransom paid and loss will be 1000btc to spread over users.

Gentlemen place your bets. I did a week ago days before the shutdown; $100 in various coins (not Zeit mind you) paid for HYP to sell at double to buy DASH under 600k, if Crypty comes back and Dash keeps pumping, $700 win .. to spend on Zeit  

I agree that Cryptsy case is more like Mintpal rather than Mt. Gox when it comes to the total volume of lost coins. That probably means that there are possibilities to see them back in the business, but personally I would rather not like to see that happening. It would be much better for the entire Bitcoin & co. community that the exchanges are run by people who know how to run their business and are better in terms of transparency than mentioned Cryptsy, Mintpal, Mt. Gox, ... (put further exchange names if you like). We are constantly warning other users not to keep the money on the exchanges unless this is absolutely necessary for the trade they are about to execute. This is actually how we perceive the exchanges, and if people like these running Cryptsy somehow stay in business, this is not gonna change any time soon.