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Bittrex has frozen over $100,000 worth of cryptocurrencies suspected to be linked to Cryptsy, according to documents filed by the court-appointed Receiver of Cryptsy’s assets, James D. Sallah Esq.
According to the documents, Sallah was contacted by “[k]nowledgeable experts in the industry” who warned him that the exchange’s funds were being moved to Bittrex, presumably with the intention to liquidate them.
At that time, Sallah served Bittrex with a subpoena and demand letter, ordering Bittrex to freeze all “accounts and wallets in Cryptsy’s name.” Two days later, Bittrex confirmed that it had frozen at least $100,000 worth of cryptocurrencies associated with Cryptsy.
Bittrex has promised to provide Sallah with the documentation about what exactly has been frozen, but had not done so at the time of the filing. Likewise, Sallah has indicated that he will be providing Bittrex with blockchain analysis to prove Cryptsy’s connection to the funds.
On April 10th, Bitcointalk forum members noticed that coins linked to Cryptsy were moving to coin mixers and exchanges. Those coins had not moved since owner Paul Vernon claimed the site was hacked. Those same forum users indicated that they would be contacting the Silver Law group, whom Sallah practices for.
Sallah took quick action, and the funds were locked by April 13th.
According to the documents, Sallah was contacted by “[k]nowledgeable experts in the industry” who warned him that the exchange’s funds were being moved to Bittrex, presumably with the intention to liquidate them.
At that time, Sallah served Bittrex with a subpoena and demand letter, ordering Bittrex to freeze all “accounts and wallets in Cryptsy’s name.” Two days later, Bittrex confirmed that it had frozen at least $100,000 worth of cryptocurrencies associated with Cryptsy.
Bittrex has promised to provide Sallah with the documentation about what exactly has been frozen, but had not done so at the time of the filing. Likewise, Sallah has indicated that he will be providing Bittrex with blockchain analysis to prove Cryptsy’s connection to the funds.
On April 10th, Bitcointalk forum members noticed that coins linked to Cryptsy were moving to coin mixers and exchanges. Those coins had not moved since owner Paul Vernon claimed the site was hacked. Those same forum users indicated that they would be contacting the Silver Law group, whom Sallah practices for.
Sallah took quick action, and the funds were locked by April 13th.