Okay, it seems cryptsy has lost the majority of user funds on end of July 2014.
( In my opinion, it could be a simple mistake by managing the btc cold wallet. ... splitting the amounts to different addresses and losing the private keys... After recognizing this mistake they started to move and sell altcoins to recover the btc wallet. Who knows what really happened... but it would explain why they haven't called the police and also why the "stolen" BTC are untouched.)
Now next thing would be, they need some kind of strategy, that makes that user don't try to withdraw the majority of funds, to keep up the normal operation of the site.
I assume that's why cryptsy implemented a "Look-Box feature" and released it three months later, in the beginning of November 2014.
Let's see what they wrote about the "Cryptsy Lockbox":
Cryptsy Lockbox & Improved Currency Converter Tool
Greetings Cryptsy Users,
Two new features have been released today that I wanted to tell you about.
Cryptsy Lockbox:
Cryptsy has always tried to be the leader in developing a safe and secure environment for trading. Today we have released Cryptsy Lockbox. Cryptsy lockbox allows you to store funds you hold on your account more securely. When you move funds to a lockbox, those coins will not be availalbe for trade or withdrawal. The lockbox is a time-lock system, you can set the time lock for 1 hour, 6 hours, 12 hours, or 24 hours. When a lockbox release request is made and approved from one of the email accounts set for the lockbox, the system will notify you every hour of a pending release via email and optional SMS alerts. If somehow you find you didn’t make the request, you can cancel it by clicking a link in the email. Once the allotted time has passed since the request was approved, you lockbox funds will be restored to your Cryptsy balance and will be available for trade or withdrawal.
You can access the lockbox from your Cryptsy balances page.
Who should use lockbox:
- Users to are not going to be trading for awhile due to vacation or another reason should store their funds in the lockbox. If you don’t plan on trading or withdrawing those coins for awhile, then store them.
- Users who store large amounts of coin on their local computer. The majority of hacks that we have seen in the past have occurred on the end users computer. If your computer is compromised, stolen, or damaged your local wallets are at risk. Cryptsy takes great measures to ensure our wallets and keys are stored safe and securely and make backups of our wallets to very secure locations often.
- Services who hold funds in their own wallets. If you run a service that stores funds in your own wallets, and do not want to worry about the security of your wallets, then you can store them into a Cryptsy Lockbox for safekeeping.
New Improved Currency Converter:
The new currency converter is back and better than ever. You can find the currency converter under the tools menu at Cryptsy. Using the converter you can convert any currency into any other currency, including USD if you are verified. You can specify either the sending amount and we will convert to show you the receiving amount, or you can specify the receiving amount and we will show you how much to send.
Soon we will be enhancing the converter tool even more by allowing you to send funds to an address to complete the conversion process, as well as providing these tools via the API. We feel this tool will be essential in the creation of merchant payment tools that use any currency traded at Cryptsy.
Happy Trading!
Paul Vernon
“BigVern”
Nov 7th, 2014
source:
http://blog.cryptsy.com/post/102008854192/cryptsy-lockbox-improved-currency-converter-toolSo! Everone should use the look-box, it's much safer that the own wallet! In other words: "do not withdraw your coins".
Exactly how was the lock-box more secure than Cryptsy's practice?
User: I wish to withdraw...
Cryptsy: Denied!
User: I wish to withdraw a smaller...
Cryptsy: Denied!
User: I wish to withdraw an even smaller...
Cryptsy: Denied and banned! Fractional withdraws from our fractional-reserve platform is a banning offense. When you're willing to play nice, please come back to Cryptsy where your coins are fully secure, proof being that even our thief's coins have been locked in place for a year and a half until a secure time manifests itself to facilitate a move.
