Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 194. (Read 1007121 times)

According to Cryptcracker Shaun Bridges is behind the Cryptsy theft. If true, I would consider him a main suspect in the bitstamp hack as well.

You are right about banks.Banks loan your money to the others and you get interest.

But the exchnage is something complete different.It is not a bank,more a just intermediary.They connected people whose trade and get a provision for every trade.Their source of financing is not credits to the others ,but trade provisions,so they are not allowed to even touch money of investors.Every customer and exchange itself should have a separate accounts.There are no fractional banking,every transaction have to be fully covered.But Cryptsy used customers money to finance their expenses and private expenses of owner.That is pure theft,even if P.Vernon did not hack his own exchange.


Fact that money from Silk Road wallets came through Cryptsy hot wallet in the time when rogue agent Shaun Bridges controled them raises a lot of suspicion.But the fact that one such transaction of 75.2 BTC  went directly to cold wallet and was never moved said that Cryptsy owner who solely controled cold wallet knew about whole process of laundering,actively participiated in it and got payment for that.Otherwise how Shaun Bridges could know for addresses of cold wallet,when we all know that customers could only got deposit addresses for hot wallet?

Few days after, rogue agents were caught.Was Cryptsy owner afraid that he could be discovered and that government agencies could take all his and exchange money,so he decided to do preventive move and  hack exchange to put BTCs and other coins out of reach of government and save it for his rainy days?That could explain why he did not contact authorities in the time of theft - when you rob the bank you wont call police for sure.

Great, let me just start an exchange and quickly get "hacked" for $10m...

Now with that all said, there's an idea. 

Create a bitcoin / altcoin depositor insurance fund and only do business with an exchange that pays into the fund.

The ironic thing about the banking collapse of 2008 is that banks lost $19 BILLION dollars of depositors monies and not a single person went to jail.

EDIT...  Bad math!  lol

$24.4 billion was lost of depositors money or at least what was paid out in insurance claims.

Banks steal money from people every day and do not provide insurance in the event that they lose your money. However, banks do pay into an FDIC fund provided by the federal government in the event that they lose your money but not all banks are FDIC insured.   The insurance program itself is an illusion however because it really isn't paid by the banks, its also paid by depositors in the form of fees, and normally by the poor depositors because banks don't charge fees to their wealthy customers.  So its normally poor people paying fees to do business with banks so that rich people can get bailed out when the bank takes off with their loot.

This program can only work though as long as a majority of banks don't up and lose everyone's money all at once. If a majority of banks or all of the banks happened to steal peoples money all at once, most people would be out of luck as there isn't enough money in the insurance fund to pay everyone back.

Banks are also fractional reserves and if everyone went to the bank at the same time to withdraw their money, we would have a similar situation to Cryptsy as where they would be out of money after 10% of depositors withdrew their money and the other 90% would have to turn to the FDIC fund, and as I've already explained, the $25 billion would be gone before most of that 90% were able to get any funds.  Thus leaving most people without any recourse of recovering their money.

As an example, during the banking collapse of 2008, the 25.0 billion dollar FDIC fund was drained down to 0.6 Billion by 2009.  

Why didn't Cryptsy report it? They now implicate themselves in the crime by fractional reserve under the guise of KYC+AML and market manipulations too. I think Cryptsy also hold all of the non stolen Alts too, I don't have any on there so I wouldn't know for sure.

Do you think Paul may have tried to get money back for Cryptsy Users by manipulating the market then?! Somehow those funds from the Cryptsy house of cards now ended up in a real house instead though.

Why move the site to China bitbi9? Why leave the US and flee to China after waiting a year+ when all he had to do was report the funds stolen?

Why not track the stolen Alt Coins and nab them at the Exchanges? Not a finger lifted other than the middle finger to all Cryptsy users!

Thunderjet and Gleb tracked most of this stuff in the first week and made it look like child's play. So if Cryptsy is serious about stopping the theft then why not do something about it when the event just happened? Instead of concerning themselves with Tiers and programming a way to halt BitCoin from leaving. It would be way easier to track and freeze the funds on other Exchanges than it would be to program the Tiers.

The reason why Cryptsy didn't track the Alt coins was the fact that they would have been tracking themselves. Pretty obvious when they accidentally post their update from the Bounty Hunters account they were trolling BCT users with.

BTW How long after the Hack did it take to implement the Tiers?

Another reason the BitCoin doesn't need to move is only if the Fractional Reserve problem grows and they are found out. If they could make the ruse work for years and years then they could also trade against their users and take the money from the internal trades and wipe down the debt. Manipulating markets and using the Trading Triggers since they know when everyone is programmed to buy and sell they can manipulate markets and stay ahead of other peoples trades.

I'm a π-Degree Pooh-Bah Freenutter from Marylandica. Instead of haggis, for rituals we eat ...



Actually, we don't eat them. We stick them up are asses and squawk like a chicken.

Free nutter > Freemason, too.

Remember that we entrusted our money with a business.  They mismanaged the money and won't return it.  With any business like a bank, it wouldn't matter how they lost the money, they would be responsible for it.  Usually they should have some kind of insurance policy to cover theft and should be able to pay customers back.  It's not our fault that they mismanaged the money.  And of course it's very likely that they stole it themselves.

Perfect

That should be dead obvious lol.

$1.3 million mansion then the transfer or the deed in the wifes name is kinda like a "hello I`m here" lol.

Those possessions should be taken away if the litigation ever makes it way..

You win, as soon as you tell us who bequeathed an ~U$1.3M mansion to Paul Vernon, who turned around and give it to his estranged wife, since it's obvious to you that Paul didn't used Cryptsy's users' funds to purchase said home because he was watching every penny of Cryptsy's moneys after the event so to reunite users with their precious ASAP that they've yet to date learnt were no longer in Cryptsy's control.

Supposedly, not a single person in Cryptsy's office knew that Paul Vernon purchased a mansion till I first provided the proof. And, nobody knew that John MacPherson aka Horus was living in Canadian Cryptsy's office-cum-residence ~5 months prior to John MacPherson, Marshall Long and Paul Vernon formally filed corp papers establishing the entity. In essence, Cryptsy directly and indirectly doled out over a quarter of a million dollars to Horus as its security dude who mostly compiling vitals of users to be sold on the black market, with Marshall Long being on record in declaring that he work for free as Cryptsy's CTO while charging U$150/hr to others for his consulting services.

Ok, please then explain to us WHY he did it then.

If you forget about the hack, and just focus on all the people who lost money AFTER that fact...

Those coins were stolen too... not by the hacker in question but by Paul.

Unless you have some better way to explain it... we will all be listening.

What "sucessful business" and "multi million dollar exchange" are you talking about?

Do you really think that someone (like Paul Vernon) would waste his sucessful business by stealing? People who say that should really think again. If he wants to cash he could sell his multi million dollar exchange, right?

And purchased two expensive cars and an ~U$1.3M home during the timeframe when Paul Vernon said that Cryptsy had to tighten its purse strings to get through tough times caused by the event which Paul didn't have a fuckin' clue as to what agency to report the crime to while assuring currently and future users at the time that Cryptsy complies with ALL FinCen regs going over and beyond the call of duty.

Back in July 2014, nobody was the wiser when Cryptsy's mega wallets were first uncovered, believing the funds were in safe storage. What's now been determined is that Paul Vernon sought and found a way to eventually make them bitcoins his own, namely using the rogue FBI agents et al. his narrative. Too bad for Paul Vernon - lucky for us - that the 3-LAs are onto his scheme, with now Paul and his close compadres fearing how long they're going be free.

Jim Shockney may feel smug when referring to me as a NUTTER, but at least I'll be a free nutter. HAHAHA

Nobody knows who has the money.  For all we know Paul Vernon and Jim Shockney have the money or it could really have been stolen.  Like I've said before, even if the money was stolen, Cryptsy lied to us and used our deposits to pay out withdrawals for other customers.  They are criminals either way.

It's not confirmed but there was some ridiculous trolling from the presumed "hacked" and/or a "bounty hunter":

https://bitcointalksearch.org/topic/cryptsy-hack-resolution-3rd-dispatch-posted-1396267

Haven't been following thread for about a month. So is it confirmed that BigVern stole funds on purpose?  Did anyone that worked for Cryptsy said something or they are hiding like little bugs?