CRYPTSY STAKES POS COINS (XST)!!!!!! EXPOSED! w/ links

[Eastbay]

so after whats been going on with XST lately and cryptsy users having large amounts of XST deposited into their accounts out of no where i started some investigative work.

the block in which the "free" xst was deposited to users accounts was this (as well as the next 8 blocks) ....  http://explorer.argakiig.us/t/sbEM5rvwf

you can then see in the next 5 blocks over 1.5million coins are moved to one address... here..  http://explorer.argakiig.us/a/sbvo

I then confronted Horus who confirmed that YES they do STAKE there POS coins!!!!

This means that cryptsy could fork ANY POS coin listed at there whim, they could dump it to buy cheap or just plain kill a coin they dont like, or worse DOUBLE SPEND attacks

i can get more indepth with this is if theres interest, i just wanted to get the news out ASAP...

[Come-In-Behind]

It's the Dumbass PoS supporters/developers fault. PoS=Piece of Shit and rightly so.

[Come-In-Behind]

It's not Cryptsy's fault, they're just making money.

It's the Dumbass PoS supporters/developers fault. PoS=Piece of Shit and rightly so.

Then you know nothing about Cryptsy at all. if you say its not their fault. Noobs like you will fall again into the next GOX trap, but well i don't care if fuckups like you end up broke.

How fast do you fucking quote. I edited that out. Fuckups like me, I've likely made more than you'll ever see in your life.

[AltcoinInvestor]

Why are you shocked?

Of course they'll get free stake of millions of pos coins'.

Because most of idiots keep their coins at exchanges....

[Eastbay]

It's not Cryptsy's fault, they're just making money.

It's the Dumbass PoS supporters/developers fault. PoS=Piece of Shit and rightly so.

Then you know nothing about Cryptsy at all. if you say its not their fault. Noobs like you will fall again into the next GOX trap, but well i don't care if fuckups like you end up broke.

EXACTLY! these people dont even see the ramifications of this.. ITS HUGE now it makes sense why they have all there coins in one massive wallet, more POS hashrate, cryptsy got caught with there pants donw on XST, something is definately fishy and im still working out the finer points, its pretty obvious this is VERY UNSAFE for the altcoin commuinity thou

atleast they could break up coins into multiple wallets to mitigate the overall hashrate for one account


and now Cryptsy has frozen the XST market again.... LOL

[Koneb]

Someone told me about this while ago. It's pretty easy to see that those volumes are mostly coming from people who work for cryptsy and you can find all crap coins there. . It's pretty much a scam to rob new guys out of their money.

[Ix]

cryptsy got caught with there pants donw on XST

Did Cryptsy say they were not staking proof of stake coins? Otherwise, why wouldn't they? Of course it is an issue of centralization, but isn't it as obvious as mining pools in bitcoin?

[Eastbay]

cryptsy got caught with there pants donw on XST

Did Cryptsy say they were not staking proof of stake coins? Otherwise, why wouldn't they? Of course it is an issue of centralization, but isn't it as obvious as mining pools in bitcoin?

 I was always under the impression that NO exchanges DID not stake coins, think about it it would cause constant downward pressure with there sells and they could do whatever they want with the coin, fork it because they dont like the dev/commuinity or to get it low and buy up cheap coins then fix it... its just not SAFE ATALL

atleast they should break it up into multiple wallets which would limit the negative options available to them

[BitJohn]

This is nothing new. When did Cryptsy ever state we do not stake coins? Some coins we do, others do not stake well. Some coins have bugs where even when you turn staking off they stake (XST). Some use so much CPU its not worth staking them.

In our Terms of Service https://www.cryptsy.com/pages/terms

28. Staking Interest

Some Cryptsy wallets may provide staking interest rewards. Any staking rewards, conversions, snapshots, or likewise will become the property of Cryptsy.


Though I wont say how many coins we keep in cold storage. Obviously those do not stake.

Edit:
Would you mind removing Exposed from the title. Since there is nothing exposed. Its always been publicly stated, and is spelled out in the Terms of Service. Do not mind the discussion, but your implying its a conspiracy.

[BombaUcigasa]

It's the Dumbass PoS supporters/developers fault. PoS=Piece of Shit and rightly so.

This.

Oh, PoS so so good, yummy yummy in my tummy... people just don't want to decentralize... bitcoin is wasted on their puny minds...

These people are the ones voting for socialists to raise their pension. They just don't understand that quantity != value.

Let's just sit around doing nothing, surely that merits rewards...

[Eastbay]

This is nothing new. When did Cryptsy ever state we do not stake coins? Some coins we do, others do not stake well. Some coins have bugs where even when you turn staking off they stake (XST). Some use so much CPU its not worth staking them.

In our Terms of Service https://www.cryptsy.com/pages/terms

28. Staking Interest

Some Cryptsy wallets may provide staking interest rewards. Any staking rewards, conversions, snapshots, or likewise will become the property of Cryptsy.


Though I wont say how many coins we keep in cold storage. Obviously those do not stake.

the least you could do is to separate the staking coins into multiple wallets to mitigate the potential issues with controlling the blockchain, or else you guys could control the blockchain doing double spends or forks at will, please take that into consideration

[MeSoHorny]

Wow this is a crap move on Crypty's part. Time to move mine to bittrex.

[BitJohn]

Wow this is a crap move on Crypty's part. Time to move mine to bittrex.

Yeah they stake too more than likely. The ones who tell you they do not are probably lying.

Edit:
Not really a move either since its always been public and always been stated.

[krach]

bittrex doesnt stake?

[Bolomir]

"Some coins have bugs where even when you turn staking off they stake (XST)"

So let me get this right. This thing is not happening at Trex, but is happening only at Cryptsy, also the wallet is broke for a week, and is XST's fault ?
And hey if I turn my wallet's staking off it won't stake.
Cool!

[BitJohn]

"Some coins have bugs where even when you turn staking off they stake (XST)"

So let me get this right. This thing is not happening at Trex, but is happening only at Cryptsy, also the wallet is broke for a week, and is XST's fault ?
And hey if I turn my wallet's staking off it won't stake.
Cool!

Not hear to debate the XST offline issue, but here is my response since you brought it up. Yes the makefile for XST was beyond broken so took us time to recreate it, and to compile the daemon.

Also undocumented fixes like the broke stake switch (causing staking even when turned off which in this coins case it was). Causes issues with wallets and integration so its offline while we thoroughly review.

The stake commit earlier referenced. https://github.com/StealthSend/Stealth/commit/1551553eb9c66631560514ea738e5aab80898638

[moonchaser]

"Some coins have bugs where even when you turn staking off they stake (XST)"

So let me get this right. This thing is not happening at Trex, but is happening only at Cryptsy, also the wallet is broke for a week, and is XST's fault ?
And hey if I turn my wallet's staking off it won't stake.
Cool!

Not hear to debate the XST offline issue, but here is my response since you brought it up. Yes the makefile for XST was beyond broken so took us time to recreate it, and to compile the daemon.

Also undocumented fixes like the broke stake switch (causing staking even when turned off which in this coins case it was). Causes issues with wallets and integration so its offline while we thoroughly review.

The stake commit earlier referenced. https://github.com/StealthSend/Stealth/commit/1551553eb9c66631560514ea738e5aab80898638

I see...still Trex is not having the same issues, nor any other exchanges, so I hope you don't mind if I wonder why just Cryptsy had this problem.

[BitJohn]

"Some coins have bugs where even when you turn staking off they stake (XST)"

So let me get this right. This thing is not happening at Trex, but is happening only at Cryptsy, also the wallet is broke for a week, and is XST's fault ?
And hey if I turn my wallet's staking off it won't stake.
Cool!

Not hear to debate the XST offline issue, but here is my response since you brought it up. Yes the makefile for XST was beyond broken so took us time to recreate it, and to compile the daemon.

Also undocumented fixes like the broke stake switch (causing staking even when turned off which in this coins case it was). Causes issues with wallets and integration so its offline while we thoroughly review.

The stake commit earlier referenced. https://github.com/StealthSend/Stealth/commit/1551553eb9c66631560514ea738e5aab80898638

I see...still Trex is not having the same issues, nor any other exchanges, so I hope you don't mind if I wonder why just Cryptsy had this problem.

Nope we eventually talked to Trex and they told us the pain they went through to fix the code and get it to compile properly. So I suppose you can thank them for that.

[bluemeanie1]

so after whats been going on with XST lately and cryptsy users having large amounts of XST deposited into their accounts out of no where i started some investigative work.

the block in which the "free" xst was deposited to users accounts was this (as well as the next 8 blocks) ....  http://explorer.argakiig.us/t/sbEM5rvwf

you can then see in the next 5 blocks over 1.5million coins are moved to one address... here..  http://explorer.argakiig.us/a/sbvo

I then confronted Horus who confirmed that YES they do STAKE ALL there POS coins!!!!

This means that cryptsy could fork ANY POS coin listed at there whim, they could dump it to buy cheap or just plain kill a coin they dont like, or worse DOUBLE SPEND attacks

i can get more indepth with this is if theres interest, i just wanted to get the news out ASAP...

there is interest.

[mullick]

There are a LOT on inaccuracies in this thread

1. Yes some coins we do stake with the hot wallets. If we find a way to do it safely and not impact the users. But most coins its ineffective to stake with as it requires too many resources or opens up security risks.

2. We only keep around 5-15% in our hot wallets. So that is all we would be contributing to the stake weight. No where neat 51% of the network weight

3. As for attacking coins. The way we move them in ineffective for that. If we wanted to pull off an attack ( Which we never would ) We would split the 1.7 Million into hundreds of thousands of smaller inputs.

4. The reason for the XST issue is 2 problems.

     4.a : We had an incorrect config option set. staking=0. XST uses stake=0 which is non standard. This is partly due to the documentation. But falls on us     as we should have reviewed the config options in the code.
     4.b : XST stake transactions are handled in a non standard way which we have adjusted for. Instead of stake transactions showing up as "immature" they show up as "received" after just one confirmation. We have adjusted our deposit script to catch them

That being said the damage was minimized by us not keeping all funds in the hot wallet so few inputs were left in users deposit addresses to stake and incorrectly credit.

We have no intention of staking with the hot wallet. As with XST it is ineffective.