Those funds are not Cryptsy's so it is not needed to report as income. They don't get a write off, only on the portion that would be theirs. But we know that theirs used to be ours, but laundered now with no way to stop it and not reporting it makes them complicit. They didn't contact the exchanges to stop any of the funds coming in either as Thunderjet detailed. This alone makes them look even more guilty. Contacting exchanges works even if they don't file a SAR or tell anyone about any hack, just ask exchanges to monitor activity on funds from the addresses and if they hit the exchange then seize them until further notification what to do. Pretty simple task for any law enforcement or fraud investigator. Proactive writing Cease and Desist letters but no Proactive Hunting or Alerting Exchanges.
In any case, i feel the IRS has substantial reason and probable cause to audit Cryptsy's and all the cryptsy crews 2014/2015 taxes at the very least,
and even in Canada where applicable. Since customers may never see a dime of their cryptsy assets why not open all the worm cans and let the feds sort it all out?
Oh BTW
If you believe you’ve been victimized by a scam involving the U.S. Mail, you can get help by contacting your nearest Postal Inspection Service office in one of three ways:
http://about.usps.com/publications/pub300a/pub300a_tech_024.htm
Worms
plus failure to report a crime. only the thief wouldn't want anyone to know the goods are missing that way no one is looking for him. in this case the theif would have been required to tell on himself wich has we can se he did not do. but he allegedly had contact with another known thief fbi agent were did he meet this guy in the first place to even consider the option of reporting to him instead of the authority he works for?.
just read this again.
quote;
We do, however, fully comply with our Federal MSB requirements. This includes filing SAR (Suspicous Activity Reports) and CTR (Currency Transaction Reports). We also have one of the most extensive KYC programs in the industry, scrub accounts against the OFAC list, and perform Transaction Monitoring. At a federal level, we are compliant. how are you compliant if you say you dont know who to report crimes to below ?
quote;
Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting. At one time we had a open communication with Secret Service Agent Shaun Bridges on an unrelated matter, but I think we all know what happened with him – so he was no longer somebody we could report this to. Recently I attempted to contact the Miami FBI office to report this, but they instead directed me to report it on the I3C website. I’ve not heard anything from them.
you say your first contact was a know thief but he was arrested for stealing himself and could no longer help with your theft . so what next ? you bought yourself time to find other means to launder the stolen money . after all nobody knows the money is not even there . in the mean while continue with normal unethical trading operations. e.g creating and adding scamcoins. only you hosted XPY no other exchage had it. you are special ? or just good pals with another known thief josh gazzer? .
quote;
This of course was a critical event for Cryptsy, however at the time the website was earning more than it was spending and we still have some reserves of those cryptocurrencies on hand. The decision was made to pull from our profits to fill these wallets back up over time, thus attempting to avert complete closure of the website at that time. This worked fine for awhile, as profits decreased due to low volume and low Bitcoin prices, we would adjust our spending accordingly. It wasn’t until an article from Coinfire came out that contained many false accusations that things began to crumble. The article basically caused a bank-run, and since we only had so much in reserves for those currencies problems began.
Our current customer liabilities for BTC is around 10,000 BTC, so as you can see we would like to see the Bitcoins returned for both our users and for ourselves.
big vern the bank manager loan approver ? false accusations which are what exactly?
