Topic: Cryptsy get's sued for shady business practices! (act surprised!) (Read 1936 times)

+100

Trying my best to act surprised, but finding it incredibly difficult to do so. Glad the corrupt business practices of "Big Vern" are finally coming to light. I removed all of my coins off of Cryptsy a very long time ago, I would advise everyone to do so as well ASAP.

When Bear Sterns underwrote the first of a series of junk bonds in 1977, no one thought much of it. After all, the risks commensurate with the yields. There were big, bold warnings on brochures and sales forms.

By the early eighties, junk bond sales accounted for more than a third of all money instrument sales in the U.S. Brokerages specializing in junk bonds sprouted like mushrooms. Small time traders, the public, were the target demographic of brokers. The brochures, prospectus and sales forms still had warning labels about the risks involved. But people continued to buy these bonds and continued to get burned. Many lost their entire live savings. Some ended up in the streets after failure to repay their home mortgages.

By mid-80s, the junk bond market grew to almost $200 billion, despite the fact that 9 out 10 investors lost money. The Junk Bond King, Michael Milken, made over $1 billion in commission and bonuses during the period.

No one thought they were doing anything wrong. They sold low grade bonds and told potential clients that these were risky investments. They weren't hiding anything.

Except they played on the dreams and hopes of naive fools, frequently sharing rags to richest stories that will seduce even the most cautious people. They also never mentioned how some of these bonds were issued for companies that are so broke, they couldn't even pay their employees salaries or office rentals. Some of the proceeds from these junk bonds were used by company CEOs to fund their lavish lifestyles. Babes and booze and blows were all paid by the life savings of some poor shmuck who clearly should've known better.

Alas, it all eventually came to a crashing end. Milken was fined $600 million and jailed 10 years. Many other brokers, brokerages and investment banks shared similar, if lesser penalties.

The moral of the story here is, snake oil salesmen comes in all shapes and sizes. And exchanges like Cryptsy and Bittrex will not be able to hide behind "we're just exchanges" lines. As crypto becomes more mainstream, the threat of legal sanctions against all of its major players will become more likely.

This suit will likely get thrown out, but more will follow. Silver Law Group is probably just hedging a position and creating brand awareness, in the hopes of attracting more clients.

No tears from me over this!

Id just love if c-cex payed me back the btc they have been holding hostage now for about 6 months. So far they have only managed to pay back 1%... GREAT!

Blackcoin and Blackhalo/Nighttrader gonna save the day.

Official response to lawsuit and alleged complaint http://blog.cryptsy.com/post/100831839452/response-regarding-lawsuit

little muts!

ICO is never about making money in short time

Like one of the comments said, Cryptsy is FinCen certified and has never made claims like the ones they are stating. Bullshit claim from haters, Bittrex on the other hand should be gone after from all the scam IPO's they have been involved with.

Dzimbeck with his Nighttrader

Many have seen this coming long time ago. Not shocked to see this coming finally into reality.

who will be the hero to launch a distributed autonomous exchange in the wild?    tell me its not possible.

This is the downside to using US based exchanges and I'm sorry to be the one to say it. US regulations and laws favor big business not new tech/financial startups.

Much of why traders will flock to BTC-E, BTER, and C-CEX who are not bothered by all the legal bullshit.

And what's left, trex, and when they get sued.  Bankers chopping the heads off...this happens they all going to get sued and then these fledgling business all shutdown.  Be careful before you cheer craptsy's demise, but I've been on there since day two they opened and besides normal it slowdowns, no fund missing issues ever.

great.

The hits keep on coming

https://twitter.com/ThisWeeksCoin/status/525448705810653184

It was only a matter of time before they found themselves in hot water!  Time to pull everything from Crapsy.

http://www.marketwatch.com/story/silver-law-group-files-lawsuits-against-cryptocurrency-exchanges-bitcoin-savings-trust-and-cryptsy-2014-10-23