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.
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/
Quote
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
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?
when did you crawl out from under your rock?
