Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 176. (Read 1006931 times)

I’m hearing some stray reports, is it possible cryptsy alts being placed for sale on bittrex right now?

Thunderjet good job with your wallet forensics. Just saw this thought you might wanna see it.
The Cryptsy UNO cold wallet has been moved to a wallet at Bittrex this sunday .  https://bitcointalksearch.org/topic/m.14494331 …

Now,after receiveship it will be good to look at Cryptsy wallets carefully and compare all these suspicious transactions(including money transactions of course).When we are talking about blockchain expertise,it is very hard to say what can be enough credentials for the court,because it is something so new,there are no school or something similar for that.Maybe these guys from Chain analysis ,which have company for blockchain expertise will have enough credentials for the court:

https://www.chainalysis.com/

https://angel.co/cryptsy/activity



Written by Marshal Long on March 19, 2015: https://www.weusecoins.com/how-to-mine-bitcoins/


On March 14, 2015 (a SATURDAY), Marshall Long invests in Cryptsy. Less than a week later, Marshall's states in an interview how Cryptsy's going to China, not incorporating there till July 2015.

This fucker Marshall Long should be used as target practice for blind shooters unable to hit the broadside of a barn so that they'll at least be able to earn one stripe for marksmanship.

They still have the coins though. Vern does at least. He can still return them. The clock is ticking. As the events unfold in the next few months I think if Vern returns the coins now he can still keep himself and his accomplices out of jail, or minimize the legal liability at least. It's the same situation Karpeles was in when the "missing" coins were tracked to his wallet. It's obvious at this point Vern is guilty.

yes... yes they do. Just because he returns the stolen coins will not make things better for the whole crew. They ran a ponzi scam.  They will be held accountable for it as it should be.

Odd, how John MacPherson aka Horus was able to voice his opinion to a Paul Vernon et al. against Marshall Long being brought on board in spite of not communicating with Paul much.

Also, Horus forgot all about he and Marshall Long and Paul Vernon being co-founders of Cryptsy Canada, using Horus' Cryptsy-paid-for home as an address on the corp papers, where Horus had been living for about six months then, the home becoming an office-cum-residence for Cryptsy Canada.

Don't bother asking Horus questions, for that pig left the sty ages ago en route to Texas to service Ginny, Jim Shockney's wife, who probably lost her fuckin' mind since losing two sons.

"Former Moolah CEO Ryan Kennedy has been arrested over the theft of 3,700 Bitcoins from the now defunct Bitcoin exchange Mintpal.

Troubles at Mintpal first emerged in July 2014 when the company reported that it had been “hacked” and had lost a large amount of a different cryptocurrency called VeriCoin. It turns out that was only the tip of the iceberg.

Following the original security incident Kennedy, then going by the name of Alex Green moved to take over Mintpal through his company Moolah in a deal which landed him approximately 35 percent of the company, but gave Moolah full control of MintPal."

Vern, don't be next crypto conman to get sent to jail. Give it up, you can still walk away from this. Xia, DC Girl, Horus, JSHock, NerdLifeLabs, Lorrie Nettles, anyone who Vern will listen to you don't have to go down as his accomplices or get dragged into court and sued, etc if Vern makes this right. If you have communication with Vern, please tell him to do the right thing here for everybody's sake you guys have got to talk him out of this. Ryan Kennedy and Mark Karpeles thought they had invented the perfect crime also, you've got to talk Vern out of it. Somebody has got to be able to talk some sense into Vern.

Vern, if you're reading this then you have to realize you aren't getting away with it. The best move is to send all the embezzled coins to the receiver and walk away. Have Eternal Insolent or whoever your accomplice is put the coins back and just announce that the hacker(s) got desparate and returned the coins which would be the truth. The lawsuit will be dropped and your chance of going to jail will be minimized. You made a big mistake and now you're desperate. There's still a chance for you to do the right thing here and give up on the embezzlement scheme. Ryan Kennedy and Mark Karpeles both tried essentially the same scheme you are now trying to pull. You don't have to wind up like them.

Yeah, but in order for Lawyers to bring these facts into litigation/trial(and explain to jury/judge) they need an expert witness. Thunderjet looks like he's about halfway cracked this case wide open, all they need is to follow up on his investigation, case solved I think. Vern looks guilty when you look at the forensics on these coins and compare them to Vern's known timeline of events, it all fits and makes sense. Everything points to him, He has alot of explaining to do, and his silence speaks volumes.

He has broken up a lot of it into little chunks but it looks like his looting activity has mostly stopped since he was ordered to stop. This might mean he's desparate for funds since he really hasn't spent the "dirty" "hacked" coins. Maybe he has more money than we even think but he should be feeling a cash crunch right about now. Let's keep a close eye on all those coins to see if he pulls a desperation move soon. Remember Paul has been holding massive reserves of POS coins so his hyperstake holdings etc might be big but who knows.

The facts Thunderjet finds speak for themselves. And there are plenty more forensics out there at Bittrex since that account where funds moved in and out of can be scrutinized. Whether Bittrex will be forthcoming is another question. If Cryptsy wanted to stop these coins it would have been so easy to do. The so called hacker may have made off with 100BTC before the first send but they had to wait every day to get the other coin out progressively. This is proof enough to anyone that it is an inside job. Coupled with all the other evidence it is a pretty compelling case for an inside job.

If Bittrex cooperates eventually it might help identify someone. Tracking forward may also show the coins go to a new exchange to sell as a real person who had to give credentials. Only problem is that those credentials are probably Cryptsy users ID's stolen and used to open fake accounts to launder the money with. This would only be more proof of an inside job though, and not inside meaning the Cryptsy users they used as fake ID did it. lol

Or it might fail due to the overwhelming volume at the exchange:

24 Hour Volume:   3.7540 CNY

3.754 Chinese Yuan equals 0.58 US Dollar


Another failed project for the giant douche.

Im sure he will be holding up liquor stores to pay for his Chinese whore any day now. 

I also dont think he was planning that from begining(that would be pure evil).For a long time I thought it was just pure greed overtook him when he saw so much money in his hands.But after all maybe initial reason came from something else.

2 months before hack at least 585 BTC from Silkroad seized wallets in the time when Shaun Bridges controlled them,came through Cryptsy wallets. 75 BTCs came directly to cold wallet and stayed in it until hack.No doubt,Vernon knew Shaun Bridges months before hack.In that time Cryptsy was biggest altcoin exchange based in US and ideal for laundering dirty Bitcoins if you had a deal with owner and give him percentage for that service.

Problem began when just few weeks after BTCs from Silkroad started to come on Cryptsy,Carl Force and Shaun Bridges went under investigation.Maybe,Vernon was afraid that investigators will connect him with them and decided to perform fake hack,so if investigation comes to him ,authorities could not sieze majority of valubale altcoins and BTCs and no matter what he will have more than enough money for the rainy days.

He performed silent hack and waited.Months were passing and nothing happened.No investigation and Cryptsy performanced well on fractional reserves.Then after initial fear,greed overtook.He probably thought - nobody search for me,exchange works,so why I would not retain all these coins for myself? He started to relax,put posts on veteran sites about his techno genius personality and finally decided to reward himself for all months in fear by starting to live luxury life.First big house,than luxury cars and finally young Chinese mistress.


Maybe all this would not happened if people knew before what Gleb discovered on this forum - that Vernon ran penny auction site Foopile few years before(Brawnco inc) which was closed on a way very similar to Cryptsy.

The more i think about it the more i think you are right. This piece of shit tried to use funds in cryptsy to push his lifestyle and new ventures... he probably started small and then well you know once you start you can't stop. He figured the cryptsy coffers would cover and fill this and with unpredictable prices and withdrawals before you know it he was fucked. So he did what any scammer and poor excuse for a father and human being would do given that situation he ran off to somewhere else.

Im not sure it was planned from the opening of cryptsy but maybe he got greedy and thought it would all be covered... its going to be a great year. Paul Vernon and Joshua Garza both in court and both involved together. Its horrible to see but maybe crypto needs bad examples like this with incarceration and fines to set examples to prevent future scams?

That Snake name big verntog🐍


@thunderjet


Soon bitebi9 going to close because verntog (osama bin laden of bitcoin ) n his employees troops going to jail then
, it means bitebi9 users now in dangerous zone😨

After Cryptsy hack announcement on 15.January,it seems that hacker was trying to speed up moving BTC obtained form selling stolen altcoins to exchanges.On 18th.January alone he sent 356 BTC,but after posting  of his wallet on 26th.January he abruptly stopped. 11825 BTCs stolen from Cryptsy were not moved at all.It looks that he wanted first to sell altcoins,then BTCs from them exchange for cash.He probably thought that everybody would look on stolen BTCs and nobody will pay attention on what is happening with altcoins.He thought that is impossible to trace altcoins,especially after changing them for BTCs.How wrong he was.

All that time October 2014 - July 2015, Vernon did not do anything to prevent it.Why he did not contact Bittrex which is also US based exchange?All that silence was perfect only for hacker,because he could exchange stolen altcoins in peace.Hacker was so sure in himself that he sent directly stolen altcoins to exchanges,without any mixing.

Few months after hack,everything goes smooth and relaxed Vernon bought 1.3 millions worth house for cash he recevied from Santa Clause.It is very possible that he reported that money to IRS as a profit from Cryptsy- clean money .After few months he was sure that Cryptsy will survive on fractional reserves and nobody will ever know what was happened.Now IRS are looking for him to explain that profit in year when exchange lost more than 10 millions in hack - that is why he put signature on divorce agreement in China not US.

After last altcoins (LTCs) were sold in July.2015 ,Vernon opened Bitebi9 on 28th.July(gave $46000 for start capital alone) and a month after that Cryptsy started to crumble.Money for Bitebi9 were obtained directly form Cryptsy old wallet,by sending 545 BTC in July to BTCC China and selling them for CNY.From July 2015-January 2016 there were no activities on that account and then just few days before Cryptsy closing on 10th.January.2016 last 16 BTC from Cryptsy wallet went on that address at BTCC China.


Obviously he tried to cover tracks,by using different wallets for different activities,so nobody could connect them.He only had full control on Cryptsy wallet,so nobody except him could know what is happening.He learned lesson from Mt.Gox,when other staff had access and report about Karpeless activities on forums before final crash.It is very possible that he has a small network of offshore companies(like Shaun Bridges had) where money from selling BTCs first went after selling for dollars on exchanges.


All this looks like some carefully planned secret operation - well maybe it is,Vernon worked for military inteligence,so he knew how secrecy is important when you doing sensitive,especially dirty things.The less people know the better.He surely very well know for inteligence services reaction after major fuck ups - first, deny everything untill you can,then starting blame others and finally act insanity.

Paul Vernon's hiding place uncovered: http://www.dailystar.co.uk/news/weird-news/506462/live-snake-found-inside-woman-vagina-togo-video-voodoo-sex

Wow so according to your theory of the crime, if I follow right, the main stash of the proceeds of the alt wallet heist hasn't been moved since january but there was a period where it looks like the "hacker"(Vern?) was attempting to dissipate the coins through some sort of bot but then right about the time Vern announced the "Event" it looks like the Hacker culprit(s) have perhaps gotten alerted to the heat on those coins and stopped the wallet activity. Part of that is that some of the coins seem to have been laundered through a kraken account in the period following Vern's divorce. This scenario seems consistent with and would seem to possibly match Lorie's allegations that she thought he was actively trying to dissipate "assets". I think she filed the divorce in that intermittent period between the sell-off portion of the strategy and the post-sale dissipation bot activity. Vern seems to have stopped looting the hot wallets since the "judge" in effect ordered him to stop.

Trying to conjecture what's in the hacker's mind. If the coin activity stopped right about the time the hack was announced then it appears the hacker was alerted to the heat and then mostly stopped messing with the coins in the "dirty" wallet stash. But Vern still kept looting the "clean" coins until a few weeks ago, if I'm following the forensics trail correctly. So, this means the hacker really mostly has not directly spent many of the "dirty" coins at all, mainly laundered them or simply left them in those big wallets in clumps of 1000.