he PERSONALLY still owes the company $600k for the loan
so thats atleast some funds that he cannot walk away from and would cost him personally.
as for the "hack" well it is an obvious inside job, but obviously no one is going to admit it was them, so the long and short of it.. no one inside or outside is going to admit it. so nothing can be done until there is evidence, whether inside or outsider in regards to the "hack"
i think the ethical thing he should do is put his own personal funds into the "pot" to pay people back. especially if after july2014 he was still taking a salary
EG if he just closed cryptsy in july2014(option1) he would not have financially benefited.. so he should not financially benefit at users expense by keeping it open
ofcourse returning any financial benefits after july2014 would be a separate amount where he would also need to repay the $600k loan aswell
Topic: Crypsty speaks to media about lost fund (Read 338 times)
These are just the stories so read it with a pinch of salt. Seriously, no one will even know who was/were actually the one(s) who took the fund- a real hack or just...
His full answers to other New Times questions are included below:
New Times: Is the story you told about the July 2014 hack completely accurate? Was there anyone else who knew what happened besides you?
Paul Vernon: Yes. I was awoken the morning of the attack with alerts of moved funds from the safe wallets. The individual(s) who did it had been planning it for some time, as they had access into the system for awhile, possibly months. It was several wallets and not just bitcoin and litecoin. I shut down all wallets and immediately contacted the wallet manager "Mullick" and the systems admin to check to make sure it wasn't them. We then promptly met at the office to start investigating. It took us a couple weeks to determine what exactly happened.
If the company was having financial problems, how is it that you were able to make a $1.3 million cash purchase on the Delray home in March 2015?
In the first year of operation from May 2013 to May 2014 the company had revenues of close to $3m. During this period I was paid $1.1m via the regular payroll system, base salary + quarterly bonuses. The initial purchase and down payment for that home was in February 2014. I took a loan from the company for $600k to complete the purchase at a time when the company was still performing well.
You admitted in a divorce deposition in December 2015 that the money from the home came from Cryptsy. Care to elaborate?
I worked for Cryptsy, that's where the majority of my income derived from.
In several blog posts and interviews after the alleged hack, you continued to make assurances that things were OK. Did you feel bad doing this or did you actually think it would work itself out?
At the time, the company was still doing well enough to possibly recover. The plan was to use a portion of revenue to replenish the wallets. However, diminishing bitcoin price and volume turned out to not go in our favor.
In hindsight, do you regret not letting the users know what happened? Do you feel you betrayed them?
Of course. At the time I had two choices, disclose and shut down or try to continue running and reacquire user funds. Because we were doing well at the time, I attempted option #2.
Your wife Lorie has been added to the lawsuit as a defendant. Would you like to respond on her behalf or speak to the extent of her involvement with Cryptsy?
She is my ex-wife. She had no involvement with Cryptsy. I cannot respond on her behalf.
The lawyer who filed the lawsuit against you likened what you did to "robbing a bank." How do you respond?
He doesn't think the hack occurred, which is surprising to me since the ex-wallet manager is working with them and he knows all the details of what happened.
From 2013 to 2015, you converted Bitcoin to thousands of dollars a day on Coinbase. Where did those coins come from?
Cryptsy collected its revenue in Bitcoin, which in turn was converted into USD via Coinbase. This was the financial model we used.
New Times: Is the story you told about the July 2014 hack completely accurate? Was there anyone else who knew what happened besides you?
Paul Vernon: Yes. I was awoken the morning of the attack with alerts of moved funds from the safe wallets. The individual(s) who did it had been planning it for some time, as they had access into the system for awhile, possibly months. It was several wallets and not just bitcoin and litecoin. I shut down all wallets and immediately contacted the wallet manager "Mullick" and the systems admin to check to make sure it wasn't them. We then promptly met at the office to start investigating. It took us a couple weeks to determine what exactly happened.
If the company was having financial problems, how is it that you were able to make a $1.3 million cash purchase on the Delray home in March 2015?
In the first year of operation from May 2013 to May 2014 the company had revenues of close to $3m. During this period I was paid $1.1m via the regular payroll system, base salary + quarterly bonuses. The initial purchase and down payment for that home was in February 2014. I took a loan from the company for $600k to complete the purchase at a time when the company was still performing well.
You admitted in a divorce deposition in December 2015 that the money from the home came from Cryptsy. Care to elaborate?
I worked for Cryptsy, that's where the majority of my income derived from.
In several blog posts and interviews after the alleged hack, you continued to make assurances that things were OK. Did you feel bad doing this or did you actually think it would work itself out?
At the time, the company was still doing well enough to possibly recover. The plan was to use a portion of revenue to replenish the wallets. However, diminishing bitcoin price and volume turned out to not go in our favor.
In hindsight, do you regret not letting the users know what happened? Do you feel you betrayed them?
Of course. At the time I had two choices, disclose and shut down or try to continue running and reacquire user funds. Because we were doing well at the time, I attempted option #2.
Your wife Lorie has been added to the lawsuit as a defendant. Would you like to respond on her behalf or speak to the extent of her involvement with Cryptsy?
She is my ex-wife. She had no involvement with Cryptsy. I cannot respond on her behalf.
The lawyer who filed the lawsuit against you likened what you did to "robbing a bank." How do you respond?
He doesn't think the hack occurred, which is surprising to me since the ex-wallet manager is working with them and he knows all the details of what happened.
From 2013 to 2015, you converted Bitcoin to thousands of dollars a day on Coinbase. Where did those coins come from?
Cryptsy collected its revenue in Bitcoin, which in turn was converted into USD via Coinbase. This was the financial model we used.
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