Topic: CRYPTSY STAKES POS COINS (XST)!!!!!! EXPOSED! w/ links (Read 2801 times)

I still have this issue. Deposited on 11th October 2014. My ticket:
https://cryptsy.freshdesk.com/support/tickets/162246

My transaction in blockchain:
http://explorer.argakiig.us/tx/388a2082205407efbe53b9ec36a849dc5ce5a394a76d5a7a35e330172686baf0

^^

QTF!

BitJohn mullick and Spoetnik, you have prepared answers for everything, the problem is that your answers are matching only partially.
BitJohn is blaming a xst "bug" (which by the way is total BS) mullick partially admits that they should have followed the documentation in proper manner and Spoetnik says that BitJohn is "spot on".
The real facts are that no other exchange had this problem and if they had any, certainly it didn't take them weeks to fix it and the xst accounts were not frozen for so long.
Second you claim to know where the problem is for 2-3 days now...and still xst is frozen along with the wallets.
This looks more like you've been staking xst coins in your wallet and you linked users accounts to that wallet and all the mess is solely your own fault.
I have no problem with you staking that coins (I don't know how ethical is that) but at list stop blaming XST for this mess and take all the blame on yourself as you should from the beginning.
There is no need for me to prove my words. The prove is out there. No exchange has this huge problem with XST, but you, meaning that you are the only exchange that messed up things and there must be a reason for that known only by you.
Not even at this moment you are able to say when the wallets will be back. All you give is ambiguous answers.

This is complete and udder bullshit that these exchanges risk other people's coin on online wallets and such to stake the coin to get free interests. They get enough in their transaction "fees".

Kudos to Cryptsy for getting on here and handling the criticism, nicely done.

Agreed, other than the possible massive conflict of interest.  IE: XST takes 3 days to mature.  It was #1 in volume for several days on trex.  Hard for coins to reach maturity, with all that volume flying about.  Maintenance would be a sure way to stabilize the wallet for a few days, and start staking.  "Hey don't mind us, we're just working on the wallet... for a few weeks."

The wallet has been locked down since that sdc rampage almost 3 weeks ago.  Coincidence?  I hope so, but wikilieaks has destroyed any trust I once gave people.  Anyone is capable of anything and then lying about it.  Especially those in charge.  Cryptsy has been known to ninja add coins for no apparent reason.  So there's obviously some kind of a back door there somewhere.  Could that that door be used to cause harm?  Only they know.

Even self admitted noobs claim this was a very easy wallet upgrade.   And the Stealth devs stepped up personally, to help those that needed extra attention.  Didn't take but a couple of hours and Mintpal 2 had a working XST wallet.  Nothing else worked, but they did have that.


Was Mintpal staking VERI, before the theft?  Is staking the reason they had 8 million of their customer's coins in an online wallet?  
Anything can happen.  From "good ole boy" business practices, to bad security, to a disgruntled employee.  

The takeaway?  Once sent to an exchange, "your coins are belong to them!"  They can do with them as they please.  As has happened many times already, You may never see them again.  Trading = Much Risk.  Not just selling low.

unless they stated pubclicly they do NOT i think it's safe bet they do in fact stake coins like any exchange would.

i have no problem with them doing it so long as i can get coins in and out of the exchange in a timely fashion.

and if they are caught sinking coins with 51% attacks then oh well they will get caught eventually maybe and ruin their rep.

can you tell that part i quoted and underlined to the HYP IPO'd coin guys harping it's so great  

aside from any of my other unrelated past opinions/comments about cryptsy or other issues with them..
i have to agree with BJ here.

#1 = what he said is spot on.

#2 = i commend his effort to 'ask' you nicely to edit the title.
       this is a reasonable request in my eyes.. nothing is being exposed, instead this is pretty much a common sense issue i think.
       and you spelled exposed wrong LOL

a fractional reserve accusation on here is off-topic and going to be unprovable true or not.
so harping on that is really not fair guys.

So yeah i back him on this because it's what seems like the right thing to do.

@OP, i have nothing against you at all and i encourage you to do what ever to keep tabs on the Exchange.
This is actually a good idea people ..for ANY exchange !

I am just trying to throw my 2 cents in here unbiased.

ALSO i find it hard to believe that every single exchange does not operate the same way.
and the other guys comments are spot on too like what about BTC pools or keeping large amounts of coins on exchange sin the first place ?

consider this.. they would prob have to have a float set aside for withdrawals right and then stake what is saved.
other wise guys may not be able to get coins out AND they would have issues staking. with coin age being low with coins moving in an out constantly *automated
most coins need to be in your wallet for a min amount of time etc right ?
..this may explain why all of a sudden deposits are randomly frozen on various exchanges occasionally.
they may be stuck scrambling to move coins from their reserve they are staking on to a float for withdrawals..
and again this i not a Cryptsy issue but a global exchanges system one !

Don't keep coins on exchanges.  The end

Ok we'll be there/here waiting.

We were not staking while the wallet was offline for 3 day. We were trying to sync the daemon.

I had to write a script to restart the daemon every 5 minutes in a infinite loop to get it past all the invalid blocks.

The reason all those blocks popped off is because it was down for so long. As soon as i opened it with the standard staking=0 and not the required stake=0 the blocks flew in until taken offline again

The reason other exchanges didnt have the issue.....They didnt redownload the blockchain

Well something must be working right with the crptsy XST wallet.  It was staking on at least Oct 13.  Since we received our coins in our cryptsy wallets, on maturity, 3 days later.  

The wallet has been down since the shadowcoin fudstorm.  So a couple of weeks now.  That kind of staking while holding all of our coins in an online wallet would build up a helluva lot of minted coins.  Possibly enough to manipulate the market.  IF MP was doing that with the VERI wallet before the hack, it would sure explain why so many weren't in cold storage.

Since the XST wallet is in permanent maintenance we can't do anything except let cryptsy mint money off of our coins.  Artificially pushing down the value with so many being minted, on hostage coins.

I generally try to not go all tin foil hat like.  But DAMIT even for the day or 2 MP2 was up, they had a working XST wallet.  Cryptsy's had weeks and here we sit... waiting.

[Edit] which sucks as I've staked since POS began, and cryptsy is getting the coins I should be earning.  I keep a round number on the exchanges to buy and sell with the waves.  Sending any extra coins back to my wallet.  So far the only one earning interest on my Cryptsy XST purchases, is Cryptsy.

Fine! Thanks for the info.

There are a LOT on inaccuracies in this thread

1. Yes some coins we do stake with the hot wallets. If we find a way to do it safely and not impact the users. But most coins its ineffective to stake with as it requires too many resources or opens up security risks.

2. We only keep around 5-15% in our hot wallets. So that is all we would be contributing to the stake weight. No where neat 51% of the network weight

3. As for attacking coins. The way we move them in ineffective for that. If we wanted to pull off an attack ( Which we never would ) We would split the 1.7 Million into hundreds of thousands of smaller inputs.

4. The reason for the XST issue is 2 problems.

     4.a : We had an incorrect config option set. staking=0. XST uses stake=0 which is non standard. This is partly due to the documentation. But falls on us     as we should have reviewed the config options in the code.
     4.b : XST stake transactions are handled in a non standard way which we have adjusted for. Instead of stake transactions showing up as "immature" they show up as "received" after just one confirmation. We have adjusted our deposit script to catch them

That being said the damage was minimized by us not keeping all funds in the hot wallet so few inputs were left in users deposit addresses to stake and incorrectly credit.

We have no intention of staking with the hot wallet. As with XST it is ineffective.

there is interest.

Nope we eventually talked to Trex and they told us the pain they went through to fix the code and get it to compile properly. So I suppose you can thank them for that.

I see...still Trex is not having the same issues, nor any other exchanges, so I hope you don't mind if I wonder why just Cryptsy had this problem.

Not hear to debate the XST offline issue, but here is my response since you brought it up. Yes the makefile for XST was beyond broken so took us time to recreate it, and to compile the daemon.

Also undocumented fixes like the broke stake switch (causing staking even when turned off which in this coins case it was). Causes issues with wallets and integration so its offline while we thoroughly review.

The stake commit earlier referenced. https://github.com/StealthSend/Stealth/commit/1551553eb9c66631560514ea738e5aab80898638

So let me get this right. This thing is not happening at Trex, but is happening only at Cryptsy, also the wallet is broke for a week, and is XST's fault ?
And hey if I turn my wallet's staking off it won't stake.
Cool!