Any truth to this? Cryptsy lawsuit?

[bitcoinpete]

Ive been having troubles logging in now for about an hour, The charts are not updating either, Lucky for me I was warned by an early adopter that we need to take all of our coins out of the exchanges asap about a week ago. Anybody else having problems with the site?

[madmartyk]

Ive been having troubles logging in now for about an hour, The charts are not updating either, Lucky for me I was warned by an early adopter that we need to take all of our coins out of the exchanges asap about a week ago. Anybody else having problems with the site?

I was a bit earlier, but was just able to login now.  Took a while though.

[pr9me]

Crazy.

[junkskin]

Never used the site, don't think i'm gonna sign up anytime soon man, F-that!

If anything the chinese exchanges are even more stable than that crap!

Link me chinese exchanges pls

[mullick]

Ive been having troubles logging in now for about an hour, The charts are not updating either, Lucky for me I was warned by an early adopter that we need to take all of our coins out of the exchanges asap about a week ago. Anybody else having problems with the site?

We are doing some maintenance right now that wasnt expected to occur for another few days but became a problem so it had to be done now. Wont be long

Never used the site, don't think i'm gonna sign up anytime soon man, F-that!

If anything the chinese exchanges are even more stable than that crap!

http://blog.cryptsy.com/post/100831839452/response-regarding-lawsuit

[rokkyroad]

Cryptsy has always had issues with regards to stability. Don't let that fool you into thinking its going down at any moment.

I just use them for shitcoins that get delisted elsewhere (bittrex, ccex, polo, etc.). Cryptsy does not go delist crazy like the other guys and therefore deserves respect.

I will probably use them more now that Mintpal is toast.

As far as the lawsuit goes; sensationalism.

Regarding Chinese exchanges: Search ' Vircurex ' before you send your money off.

[Febo]

Doesnt look legit imho

http://www.silverlaw.com/securities-lawyers/2014/10/silver-law-group-files-lawsuits-against-cryptocurrency-exchanges-bitcoin-savings-trust-and-cryptsy/

Silver Law Group has filed two lawsuits, one against Texas-based Bitcoin Savings & Trust (operated by Trendon Shavers) and another against Florida-based Cryptsy (operated by Paul Vernon).  According to the Complaints, investors have been victimized by deceptive and misleading tactics, such as claims of profits of 7% weekly interest or of a safe and reliable platform to trade cryptocurrencies free from excessive fees and commissions.  While Mr. Shavers raised more than 700,000 Bitcoin in principal investments from investors, those Bitcoins have disappeared.  Likewise, investors with Cryptsy, which CoinDesk has touted as “the largest crypto-to-crypto exchange,” have seen their accounts emptied and Bitcoin simply disappear.  On behalf of its clients, Silver Law Group has pursued nearly $12 million in restitution from these online operators.

All this looks so bad. Is there any good exchange at all?  If there will be exchanges scamming people one way or another every month, crypto will not move anywhere at all.

[CryptsyJim]

Please see our official statement regarding this lawsuit:
http://blog.cryptsy.com/

[Anotheranonlol]

Bitcoin Savings and Trust was/is a frikking huge BTC scam:

https://www.techdirt.com/articles/20130723/16121723913/sec-confirms-that-bitcoin-savings-trust-was-ponzi-scheme-files-lawsuit.shtml

700.000 Bitcoin collected, apparently.

those will be dumped, and this is why btc is declining so badly, if people stop following this no sense-shitty ipo campaign

  when did you crawl out from under your rock?
 BS&T happened years ago. Perpetrator was fined $40 million USD already

[defaced]

Ive been having troubles logging in now for about an hour, The charts are not updating either, Lucky for me I was warned by an early adopter that we need to take all of our coins out of the exchanges asap about a week ago. Anybody else having problems with the site?

Looks like a sockpuppet trying to take advantage of cryptsy maintenance to plant a little fud. The devil never sleeps.

[defaced]

Doesnt look legit imho

http://www.silverlaw.com/securities-lawyers/2014/10/silver-law-group-files-lawsuits-against-cryptocurrency-exchanges-bitcoin-savings-trust-and-cryptsy/

Silver Law Group has filed two lawsuits, one against Texas-based Bitcoin Savings & Trust (operated by Trendon Shavers) and another against Florida-based Cryptsy (operated by Paul Vernon).  According to the Complaints, investors have been victimized by deceptive and misleading tactics, such as claims of profits of 7% weekly interest or of a safe and reliable platform to trade cryptocurrencies free from excessive fees and commissions.  While Mr. Shavers raised more than 700,000 Bitcoin in principal investments from investors, those Bitcoins have disappeared.  Likewise, investors with Cryptsy, which CoinDesk has touted as “the largest crypto-to-crypto exchange,” have seen their accounts emptied and Bitcoin simply disappear.  On behalf of its clients, Silver Law Group has pursued nearly $12 million in restitution from these online operators.

All this looks so bad. Is there any good exchange at all?  If there will be exchanges scamming people one way or another every month, crypto will not move anywhere at all.

Thing is, cryptsy never scammed anyone.

[EvilDave]

The Cryptsy lawsuit is about someone allegedly losing 140BTC via trades on the exchange despite maintaining control of his/her account, then alleges that Cryptsy transferred all BTC out of the account.

It also says something along the lines of the plaintiff believing that BTC sent to one wallet address should remain in that wallet address in a specifically isolated account from other users BTC, and that this should be a standard on all exchanges.

Heres Cryptsy's reply:
from http://blog.cryptsy.com/

Response regarding lawsuit

There was quite a bit of PR pushed out yesterday from a law firm that stated that they were filing a lawsuit against Cryptsy and myself. The complaint alleges that Crytpsy misled users and was negligent in security. They represent a single user.  We have close to 300,000 users at this point. We have reviewed the unofficial complaint and believe that it is without merit. We intend to defend the case vigorously.

We would like to note that we have not received any documentation or official notification concerning any lawsuit yet.  We also find it unprofessional that the law firm decided to push out such a large PR campaign prior to serving any notice.  It should also be noted that according to the user terms of our site, disputes are to be handled via arbitration.  

We realize that there have been a few ”Bad Actors” in the crypto-currency space running exchanges and other services.  Cryptsy strives for transparency and doing what is right.  This lawsuit attempts to place us in the same group as many of these bad actors, but this is simply not how we operate.  We are not a fly by night operation, we are a company that plans to be around for a long time.   Our desire is to be the model of how to operate a crypto business.

As I’m sure many of you are aware, we take security very seriously.  We pride ourselves on being one of the most secure places to trade on the internet.  The crypto-currency space has been the target for a lot of hackers over the last year due to the increase in value of Bitcoin.  These hackers  not only target Cryptsy users, but users of many other Bitcoin services.  

In this case the attack on the user making the claim came from within their own computer.  This is currently one of the most common attacks by hackers.   While we try to educate our users on how to secure their local environment, we ultimately have no control of a users computer system.

So as a reminder I’d like to reiterate a few security tips:

- Do not leave your computer logged into your Cryptsy account when you are away from your computer

- Do not install browser extensions from unknown developers

- Do not install mining software from unknown developers on the same computer you use to access Cryptsy

- Run a virus scan regularly.  

- Make sure you use 2fa on your Cryptsy account

Paul Vernon
"BigVern"
Cryptsy.com

So, one unhappy Cryptsy user is behind the suit, and his issue is that BTC has 'evaporated' from his wallet.
I had a similar feeling buying CraftCoin.....


Anyone got any ideas about the Bitcoin Savings and Trust suit ? That scam is so old, it even pre-dates MtGOX, so who's putting up the cash to pursue it?

[defaced]

The Cryptsy lawsuit is about someone allegedly losing 140BTC via trades on the exchange despite maintaining control of his/her account, then alleges that Cryptsy transferred all BTC out of the account.

It also says something along the lines of the plaintiff believing that BTC sent to one wallet address should remain in that wallet address in a specifically isolated account from other users BTC, and that this should be a standard on all exchanges.

Heres Cryptsy's reply:
from http://blog.cryptsy.com/

Response regarding lawsuit

There was quite a bit of PR pushed out yesterday from a law firm that stated that they were filing a lawsuit against Cryptsy and myself. The complaint alleges that Crytpsy misled users and was negligent in security. They represent a single user.  We have close to 300,000 users at this point. We have reviewed the unofficial complaint and believe that it is without merit. We intend to defend the case vigorously.

We would like to note that we have not received any documentation or official notification concerning any lawsuit yet.  We also find it unprofessional that the law firm decided to push out such a large PR campaign prior to serving any notice.  It should also be noted that according to the user terms of our site, disputes are to be handled via arbitration.  

We realize that there have been a few ”Bad Actors” in the crypto-currency space running exchanges and other services.  Cryptsy strives for transparency and doing what is right.  This lawsuit attempts to place us in the same group as many of these bad actors, but this is simply not how we operate.  We are not a fly by night operation, we are a company that plans to be around for a long time.   Our desire is to be the model of how to operate a crypto business.

As I’m sure many of you are aware, we take security very seriously.  We pride ourselves on being one of the most secure places to trade on the internet.  The crypto-currency space has been the target for a lot of hackers over the last year due to the increase in value of Bitcoin.  These hackers  not only target Cryptsy users, but users of many other Bitcoin services.  

In this case the attack on the user making the claim came from within their own computer.  This is currently one of the most common attacks by hackers.   While we try to educate our users on how to secure their local environment, we ultimately have no control of a users computer system.

So as a reminder I’d like to reiterate a few security tips:

- Do not leave your computer logged into your Cryptsy account when you are away from your computer

- Do not install browser extensions from unknown developers

- Do not install mining software from unknown developers on the same computer you use to access Cryptsy

- Run a virus scan regularly.  

- Make sure you use 2fa on your Cryptsy account

Paul Vernon
"BigVern"
Cryptsy.com

So, one unhappy Cryptsy user is behind the suit, and his issue is that BTC has 'evaporated' from his wallet.
I had a similar feeling buying CraftCoin.....


Anyone got any ideas about the Bitcoin Savings and Trust suit ? That scam is so old, it even pre-dates MtGOX, so who's putting up the cash to pursue it?

A vulture

[greco]

Doesnt look legit imho

http://www.silverlaw.com/securities-lawyers/2014/10/silver-law-group-files-lawsuits-against-cryptocurrency-exchanges-bitcoin-savings-trust-and-cryptsy/

Silver Law Group has filed two lawsuits, one against Texas-based Bitcoin Savings & Trust (operated by Trendon Shavers) and another against Florida-based Cryptsy (operated by Paul Vernon).  According to the Complaints, investors have been victimized by deceptive and misleading tactics, such as claims of profits of 7% weekly interest or of a safe and reliable platform to trade cryptocurrencies free from excessive fees and commissions.  While Mr. Shavers raised more than 700,000 Bitcoin in principal investments from investors, those Bitcoins have disappeared.  Likewise, investors with Cryptsy, which CoinDesk has touted as “the largest crypto-to-crypto exchange,” have seen their accounts emptied and Bitcoin simply disappear.  On behalf of its clients, Silver Law Group has pursued nearly $12 million in restitution from these online operators.

All this looks so bad. Is there any good exchange at all?  If there will be exchanges scamming people one way or another every month, crypto will not move anywhere at all.

Thing is, cryptsy never scammed anyone.

That's plainly false.  I have seen (and experienced) a few cases where cryptsy:
 Misses a wallet update -> sends out altcoins on the wrong fork -> never reimburses the users.  Read through some old PHS and IFC threads if you're interested- although I can tell you're pretty much a shill for cryptsy and you won't care to look into their faults.

I've had PHS stuck in their glitchy system for over six months, with support ignoring me or shuffling me between "support tiers".  It's the worst experience I've had with anything financial online- and I play money games!  I chalk these up to a loss, aka scammed by cryspty.  I imagine they've done this to hundreds of individuals; "lose" a bit of their coins and keep it forever trapped with shitty support. 

I only hope their incompetence catches up with them )

[EvilDave]

CoinTelegraph story, reveals that the Cryptsy plaintiff is someone called Skye Bonow

http://cointelegraph.com/news/112792/florida-law-firm-files-two-lawsuits-against-cryptsy-and-bitcoin-savings-and-trust

[defaced]

Doesnt look legit imho

http://www.silverlaw.com/securities-lawyers/2014/10/silver-law-group-files-lawsuits-against-cryptocurrency-exchanges-bitcoin-savings-trust-and-cryptsy/

Silver Law Group has filed two lawsuits, one against Texas-based Bitcoin Savings & Trust (operated by Trendon Shavers) and another against Florida-based Cryptsy (operated by Paul Vernon).  According to the Complaints, investors have been victimized by deceptive and misleading tactics, such as claims of profits of 7% weekly interest or of a safe and reliable platform to trade cryptocurrencies free from excessive fees and commissions.  While Mr. Shavers raised more than 700,000 Bitcoin in principal investments from investors, those Bitcoins have disappeared.  Likewise, investors with Cryptsy, which CoinDesk has touted as “the largest crypto-to-crypto exchange,” have seen their accounts emptied and Bitcoin simply disappear.  On behalf of its clients, Silver Law Group has pursued nearly $12 million in restitution from these online operators.

All this looks so bad. Is there any good exchange at all?  If there will be exchanges scamming people one way or another every month, crypto will not move anywhere at all.

Thing is, cryptsy never scammed anyone.

That's plainly false.  I have seen (and experienced) a few cases where cryptsy:
 Misses a wallet update -> sends out altcoins on the wrong fork -> never reimburses the users.  Read through some old PHS and IFC threads if you're interested- although I can tell you're pretty much a shill for cryptsy and you won't care to look into their faults.

I've had PHS stuck in their glitchy system for over six months, with support ignoring me or shuffling me between "support tiers".  It's the worst experience I've had with anything financial online- and I play money games!  I chalk these up to a loss, aka scammed by cryspty.  I imagine they've done this to hundreds of individuals; "lose" a bit of their coins and keep it forever trapped with shitty support. 

I only hope their incompetence catches up with them )

You call me a shill, I call you a fudrucker, and the cycle of crypto accusations continues! If you think you have a case why dont you contact a lawyer?

[defaced]

Cryptsy has been scamming since the begining. They are simply better now that they have better resources. Hope they crash and burn from this.

That comment doesnt really hold any merit when your tag line is "honk if you hate cryptsy".

[defaced]

Cryptsy has been scamming since the begining. They are simply better now that they have better resources. Hope they crash and burn from this.

That comment doesnt really hold any merit when your tag line is "honk if you hate cryptsy".

In the USA and in particular the Southern USA it is a sign of supprt, as in support for "Hating Cryptsy"

If you think I am in anyway a fan of Craptsy, then I refer you to my (now 22 page thread) thread from last year where I filed a complaint with Florida AG as I live in Florida.

https://bitcointalk.org/index.php?topic=361514.0

I remember it and you Has the axe been grinned enough yet?

[defaced]

Cryptsy has been scamming since the begining. They are simply better now that they have better resources. Hope they crash and burn from this.

That comment doesnt really hold any merit when your tag line is "honk if you hate cryptsy".

In the USA and in particular the Southern USA it is a sign of supprt, as in support for "Hating Cryptsy"

If you think I am in anyway a fan of Craptsy, then I refer you to my (now 22 page thread) thread from last year where I filed a complaint with Florida AG as I live in Florida.

https://bitcointalk.org/index.php?topic=361514.0

I remember it and you Has the axe been grinned enough yet?

No it hasn't. If mcxNOW would expand its base, Cryptsy would be dead.

mcxnow lol now it allll makes seeense!

[greco]

Doesnt look legit imho

http://www.silverlaw.com/securities-lawyers/2014/10/silver-law-group-files-lawsuits-against-cryptocurrency-exchanges-bitcoin-savings-trust-and-cryptsy/

Silver Law Group has filed two lawsuits, one against Texas-based Bitcoin Savings & Trust (operated by Trendon Shavers) and another against Florida-based Cryptsy (operated by Paul Vernon).  According to the Complaints, investors have been victimized by deceptive and misleading tactics, such as claims of profits of 7% weekly interest or of a safe and reliable platform to trade cryptocurrencies free from excessive fees and commissions.  While Mr. Shavers raised more than 700,000 Bitcoin in principal investments from investors, those Bitcoins have disappeared.  Likewise, investors with Cryptsy, which CoinDesk has touted as “the largest crypto-to-crypto exchange,” have seen their accounts emptied and Bitcoin simply disappear.  On behalf of its clients, Silver Law Group has pursued nearly $12 million in restitution from these online operators.

All this looks so bad. Is there any good exchange at all?  If there will be exchanges scamming people one way or another every month, crypto will not move anywhere at all.

Thing is, cryptsy never scammed anyone.

That's plainly false.  I have seen (and experienced) a few cases where cryptsy:
 Misses a wallet update -> sends out altcoins on the wrong fork -> never reimburses the users.  Read through some old PHS and IFC threads if you're interested- although I can tell you're pretty much a shill for cryptsy and you won't care to look into their faults.

I've had PHS stuck in their glitchy system for over six months, with support ignoring me or shuffling me between "support tiers".  It's the worst experience I've had with anything financial online- and I play money games!  I chalk these up to a loss, aka scammed by cryspty.  I imagine they've done this to hundreds of individuals; "lose" a bit of their coins and keep it forever trapped with shitty support. 

I only hope their incompetence catches up with them )

You call me a shill, I call you a fudrucker, and the cycle of crypto accusations continues! If you think you have a case why dont you contact a lawyer?

First off, a fudrucker?  Feels like you're trying to devalue what I've said with an inaccurate label! This is personal observation and experience through a reasonable scope.  My accusation had validity due to your hugely generalized, naive and trusting assumption ("never scammed anyone").  How could you even begin to make that assumption, are you aware of all deposits, withdrawals, and tickets that go through cryptsy?  

Second- it's under 50 bucks, not worth my time to chase outside of occasionally reminding the support of their incompetence.  Luckily I learned this lesson before investing a few thousand into various crypto though!

Here's the old PHS thread on a page with a few people talking about their coins in limbo btw: https://bitcointalk.org/index.php?topic=292720.1300