Topic: Cryptsy could be working on fractional reserve. (Read 2203 times)

Cryptsy has made to many mistake to be taken serious. Fool me once shame on you, fool me twice, shame on me.
I would never register in a Cryptsy 2.0. So even if they survive which I doubt, i would not use them.

OK shorena, time for you to reference that quote.   

Is there a way "we" can catch the operator of the exchange and ask him to return the money very soon?

Coins are moving in cryptsy wallet it seems:

https://blockchain.info/address/3HNSiAq7wFDaPsYDcUxNSRMD78qVcYKicw



https://www.reddit.com/r/Bitcoin/comments/416swg/1000_btc_bounty_to_reclaim_10000_btc_stolen_from/

You called it, sir, way back then.  I applaud you.

It sucks they Goxxxed, but that's what happens when people with no fucking business sense try to start up a business.  It's unfortunate that said knuckleheads started up a bitcoin exchange and not a pizza parlor.

Were.

"cryptsy.com" is down, the offices are vacant, the CEO is missing, and the assets are involved in a divorce case.

Not could be, they are.......

You are right. It is broke now. It used to be the largest altcoin exchange. Many people traded there in the past.

On July 29, 2014, either before/after the purported hack,  Cryptsy moved about 56,000 Uno into a cold storage wallet at
https://chainz.cryptoid.info/uno/address.dws?uRAN4dj3yG8n93obakUHT8siVQap47bHrN.htm

The Uno community eventually showed this wallet to belong to Cryptsy by tracing withdrawals.  The #1 Uno wallet is still Cryptsy, but the address changes every time the cold wallet is tapped.

My question is whether the "hacker" took advantage of Vern's making changes to cold wallets at Cryptsy, or if it was a knee jerk reaction to learning he was broke, or if it hints somehow at insider activities. 

A month and a half prior to the inside hack job with Cryptsy having somewhere north of five million dollars worth of bitcoins at this juncture, folks were complaining about the exchange being slow to pay out withdraws.

I was right.

https://archive.is/jQCBM

It is all about percentages.

If an exchange deals with bitcoin primarily and has 90% of it's crypto in bitcoin, and has only $10 million in assets (small for btc-e but big for criptsy) then a 10 BTC withdrawal would not cause an issue with it's hot wallet. On the flip side if an exchange only has 10% of it's assets in BTC, still with $10 million in assets and 5% in hot wallet then your 10 BTC withdrawal would be ~12% of their hot wallet.

IMO as long as delays to not go past 24 hours or so I would not worry (not counting weekends).

Can you link me to this story? I don't remember this.

Cryptsy had security issue back in December. Who know how much bitcoin were stolen?


The next major exchange blow out will probably be Crytsy.

Gox claimed hacks the reason of the lose of coins however this is not related with criptsy but anyway i wouldnt be using an exchange that delays hours or days the wirhdrawals, all the exchanges outhere (btc-e, mintpal) etc have cold storage and their withdrawals are almost instantly so thats not a reason.

^^ that.

I think this points more to a thorough checking process for transactions over a certian, in this case larger than average, transaction request. Wether it be awaiting human approvals or access to a cold storage wallet, I feel it hints at a more robust checking system.

Cryptsy could always re-inforce their image by explaining why it takes that length of time...

Sure hope your wrong about cryptsy being the next mt.gox

if they do GOX out, I would say the same thing is true about it too, that this is not what everyone thinks, because it makes zero sense to do what GOX did, cause it is like taking a tree that produces fruit all day long and cutting it down to get the wood in the trunk, losing all that fruit the tree would have made for years to come, when you were selling that fruit off for 100s of dollars a day, and the wood is only worth say a thousand dollars.

the fact that it does  not make logical financial sense to cut and run on this game tells me that there is a LOT more to the story than meets the eye, and the same would apply to them (cryptsy) shutting down either running off with coins or stealing them, either way. does not make sense in the business aspect of things, servers are not that expensive to run, nor is bandwidth, especially when you have the bux to buy in bulk.

I have worked on a business plan to open my own exchange due to the numbers being so positive for a recognized exchange, (not so profitable if you are not getting any traders and such obviously).

reason I have not set up one yet, is that I want to put something into play that others have not, since there is stiff competition like btc38 with both it's high volume and extremely low costs on trading I mean what is cryptsy still charging? is it still 3% and 2% depending on if it is a sale or buy? how can that compete with .1% on both lol, only thing keeping cryptsy running is their willingness to put coins on their market so fast, as opposed to btc38 taking a while and more thoroughly vetting coins before adding them lol.

I think I have a good idea, that builds on the things that make trading sites valuable, but the talk about cold storage, and what not does make me revisit my business model a bit to tweak things, so I am glad this discussion was opened

They likely only have a small fraction of each of their coins in hotwallets.

What the OP is saying about his experience shows good security (at least from a wallet perspective).