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Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 328. (Read 1006940 times)

vip
Activity: 1428
Merit: 1145
Read this taken from http://blog.cryptsy.com/:

Quote
These are the approximate figures taken:
Bitcoin:  13,000 BTC
Litecoin:  300,000 LTC

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.

Here are the transaction details from the Bitcoin wallet:

https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

As you can see,  2014-07-29 13:17:36 is when the event occurred.   A very interesting fact here, however, is that those Bitcoins have not moved once since this happened.    This gives rise to the possibility they can be recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.
recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.

And watch this video from " Aug 13, 2014", nearly two weeks later:

https://www.youtube.com/watch?v=dJONR_UL1rw

"Unbelievable" is all i have to say ...

Or better "how to dig ones own hole" - presented by BigVerns Wink


good lord! never seen that! thats gotta be the most damning body language evidence out there.

Paul Vernon: Thanks for stopping by, and who are you guys again. Ah, okay, just wanna to make sure I had the name right so that over lunch we can make fun of you for not asking why 6.5 million dollars of bitcoins were rumored to be stolen from Cryptsy. You guys are the bestest reporters in the whole wide world. When you guys came in here, I thought I was gonna wet my pant with piss, but it turned out I creamed them with sweet and salty jeez. Wanna taste or smell it to prove I'm not lyin'?
vip
Activity: 1428
Merit: 1145
well according to guys on IRC Vern's million dollar house is just a false rumor..

Yep, with the state of Florida perpetuating said rumor so to fuck with the cryptocurrency community.
legendary
Activity: 1190
Merit: 1004
Fortunately I read the forum and not invest any of my btc in this fucking scam sites...
Are these the sites that destroy btc, and these the human to avoid business with in.


There isn't much different from cryptsy and any other site like mt. gox, poloniex, bittrex, cryptopia, bluetrade, c-cex, etc. The only way to securely hold users funds is in cold wallets. This would mean withdraws have to be processed by a human which would lead to higher trading fees.

The biggest problem with all exchange is the minimal trading fees. I tried to run an exchange before. It's expensive. There isn't much profits in them.

Any legit exchange should look at easy ways for users to withdraw funds easily, and further easily sweep those coins back into the exchange.


legendary
Activity: 3388
Merit: 3514
born once atheist
Read this taken from http://blog.cryptsy.com/:

Quote
These are the approximate figures taken:
Bitcoin:  13,000 BTC
Litecoin:  300,000 LTC

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.

Here are the transaction details from the Bitcoin wallet:

https://www.walletexplorer.com/wallet/0c07e0bec1002bd2

As you can see,  2014-07-29 13:17:36 is when the event occurred.   A very interesting fact here, however, is that those Bitcoins have not moved once since this happened.    This gives rise to the possibility they can be recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.
recovered.   In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.

And watch this video from " Aug 13, 2014", nearly two weeks later:

https://www.youtube.com/watch?v=dJONR_UL1rw

"Unbelievable" is all i have to say ...

Or better "how to dig ones own hole" - presented by BigVerns Wink


good lord! never seen that! thats gotta be the most damning body language evidence out there.
sr. member
Activity: 297
Merit: 250
Fortunately I read the forum and not invest any of my btc in this fucking scam sites...
Are these the sites that destroy btc, and these the human to avoid business with in.
vip
Activity: 1428
Merit: 1145
Hey, maybe Paul Vernon can have Johann Gevers to conduct an audit of Cryptsy and act as a liquidator to unite the altcoins with their original owners seeing that he did such a great job for Sonny Vleisides' Laissez Faire City: http://web.archive.org/web/20021215093450/http://www.lfcfa.net/financials/notes.html

Quote
The only asset the Trust has to pay off its creditors, is DMT shares. These shares will be used to
settle the Trust’s debt at $0.50 per DMT share. Excluding the ATM depositors, which are the
responsibility of JRH, the other creditors amount to less than $100,000. Therefore, about 2
million of the LFCIT’s original holding of 2.5 million shares will be available for distribution to
Founders and warrant holders. About half of this distribution will be to external Founders, and
half to JRH and his son. This will put JRH in a position to settle his debts to the ATM depositors
and the LFCIT.
 
The distribution will be done when the analysis of the ATM database has been completed and
reconciled with the other records of securities holdings. Further details will be announced on the
Laissez Faire City Founders Association (LFCFA) websites when the information becomes
available.

To be clear, if you can count to zero, then you've successfully calculated how much money was returned to those scammed while Sonny went to Italy to live with his Christian brother before being picked up, put in jail, and finally released with a $100 USD fine and three years probation just prior to coming to this forum and fucking more people because he was on a new track - a cryptocurrency track that he was already versed in two decades earlier while Paul Vernon was servicing 3-, 4- and 5-Star Generals.

Pretty fuckin' amazing, eh?
legendary
Activity: 1190
Merit: 1004

I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.


It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?
if i read this page https://www.linkedin.com/in/nicholas-mullesch-46b5a784 I belive he was only a admin. this is a description like a admin who starts and kills virtual machines on 12 servers. This should be the "big" wallet-guy? I was blinded very much from cryptsy.  Undecided
[/quote]


This guy only went to highschool...

legendary
Activity: 1540
Merit: 1011
FUD Philanthropist™
well according to guys on IRC Vern's million dollar house is just a false rumor..
legendary
Activity: 3388
Merit: 3514
born once atheist
http://www.coindesk.com/class-action-lawsuit-filed-digital-currency-exchange-cryptsy/

So this genius apparrently deposited 84 million dogecoin into Cryptsy on Dec 27 2015.
according to class action suit. WTF?  84 freakin million!!!   Are you shitting me?? deposit  $14,000  worth of crypto into an exchange
that has not been processing bitcoin withdrawals for PAST 3 MONTHS !!!!  HELLO? Jeezus... the stupid..it hurts!!  
legendary
Activity: 1190
Merit: 1004



This is why I've been asking all the exchanges to implement a balance -> paper wallet, then paper wallet to -> balance sweep tool.

None of the exchanges listen because they are all garbage.

sr. member
Activity: 324
Merit: 250
I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.


It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?

there are just two possiblities:

A) just one host and all wallets run on one host or
B) each wallet has it's own host, but the hosts are still allowed to communicate with each other

If normal network policies would be in place like restricted access for each host there would be no problem at all.

Seems they had a hot wallet and another hot wallet (as "cold" wallet) for each coin and all hosts where connected to each other without any network policy at all
hero member
Activity: 798
Merit: 1000


Are any coins available to withdraw on cryptsy?


Are you serious ?


I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.


It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?
if i read this page https://www.linkedin.com/in/nicholas-mullesch-46b5a784 I belive he was only a admin. this is a description like a admin who starts and kills virtual machines on 12 servers. This should be the "big" wallet-guy? I was blinded very much from cryptsy.  Undecided
legendary
Activity: 1190
Merit: 1004


Are any coins available to withdraw on cryptsy?

legendary
Activity: 1726
Merit: 1018
I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.


It makes no sense that the guy who approved the trojan wallet would still work there for more than a year afterwards.  Also, wasn't he like head security guy or some such thing?  Why would you let the guy who compromised the whole show be head security guy?
hero member
Activity: 591
Merit: 501
Scavenger of Crypto Sorrow
I guess the only person who can really shed light on what's happened at Cryptsy 1.5 years ago is Nicholas Mullesch aka Mullick. He supervised all coin daemons running there. The feds would like to talk to him for sure. Soon.
legendary
Activity: 1960
Merit: 1128
Well, its proven that factom addy is directly linked to the bunch of addresses associated with july hack.

We even had people https://bitcointalksearch.org/user/djohnston-76620 confirming the use of the same factom addy for sending dust to different accounts so as to affiliate them with 'early adopters' or 'supporters of emerging crypto technologies' https://bitcointalksearch.org/topic/m.10945892.

This means that addresses that ever received dust from factom addy https://blockchain.info/address/1FactomGnNFTsTVx8jiGjcLKDpyL65GDsH are marked as early adopters.

Here is one of the hackers addresses: https://blockchain.info/address/1DqCNwUffFTxULH8crehynw53TwrHnrv1c and a transaction that links factom vanity address and recipient's addy
https://blockchain.info/tx/b6e2d9e639b1bb70bda4de160531d7f0cacca8f842edcedab9f945b76faf0d56 on april, 2.

This would imply factom faggots and this fellow https://www.linkedin.com/in/davidajohnston would be involved in cooperation with ppl linked to hacker`s addresses.

Whoever controls these addresses https://blockchain.info/tx/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf they're recognized as early adopters or supporters of factom foundation and could even be among backers of their ico. Or they themselves could work at factom.

Don't be that naive. Factom used this method to get some attention and if you do the math, you will see:


Approximately 31 BTC / 0.0005 BTC = 62,000 "Dust-transactions". Even friends of mine got a little surprise from Factom without having connections to Factom or being invested.

And no, to be recognized as supporter of blockchain-technologies (because somebody obviously has a Bitcoin-address) doesn't mean what you would like to imply with: "recognized as early adopters or supporters of factom foundation and could even be among backers of their ico. Or they themselves could work at factom."

Or do you believe Factom recognized early adopters of Factom by sending 0.0005 BTC to approx. 65,000 random addresses?

That's ridiculous.

And again: They didn't say that. Johnston said:

"The reason the Factom team sent these bitcoins out is to recognize you as an early adopter / supporter of new blockchain technology projects. (Your address was among many on the bitcoin ledger who previous supported other community projects)

We hope you will check out the Factom Software Sale and use this bit of bitcoin to claim your first Factoid(s) and thus be able to join our community as a beta tester / early adopter. "


He also said:

"If you aren't interested, that's cool just keep the BTC as a small tip for being an active part of the community."


It's called advertising. ;-) 

With the venerable Paul Johnson at the helm. HAHAHA

I'm not sure what you wanna say and without any arguments for the funny implication above, it's unfortunately OT to discuss Factom here.

But, if you would like, join the Factom-thread: https://bitcointalksearch.org/topic/ann-factom-introducing-honesty-to-record-keeping-850070
hero member
Activity: 550
Merit: 501
Verns wallet on his bct profile looks interesting as well

1oFmWzZRF6b2kTiTrkSJ7CQZ2JnB351oH

https://blockchain.info/address/1oFmWzZRF6b2kTiTrkSJ7CQZ2JnB351oH

No. Transactions   104   

Total Received   94.48032629 BTC   

Final Balance   0 BTC

https://bitcointalksearch.org/user/bigvern-93918

Name:   bigvern
Posts:   100
Activity:   100
Position:   Member
Date Registered:   April 06, 2013, 11:29:52 AM
Last Active:   January 14, 2016, 02:52:30 AM
ICQ:   
AIM:   
MSN:   
YIM:   
Email:   hidden
Website:   LiteBonk
Current Status:   Offline Offline
Skype:   litebonk
Bitcoin address:   1oFmWzZRF6b2kTiTrkSJ7CQZ2JnB351oH
Gender:   Male
Age:   42
Location:   Boynton Beach, FL USA
Local Time:   January 15, 2016, 08:15:53 PM
Trust:   -8: -3 / +0
Warning: Trade with extreme caution!

And he's been active...  Last Active:   January 14, 2016, 02:52:30 AM

Hey BCT, What's his IP addy?
legendary
Activity: 2940
Merit: 1333
Figuring out who owns the btc addresses that received the multiple 1000BTC transactions could lay in the small amounts that are also received on those addresses.

Not really. People send these tiny transactions as a form of cheap advertising. Just scam the blockchain for the 10,000 most "interesting" addresses (most active, highest balance, most famous) and send them some dust from your vanity address. Personally it leaves me with a negative association ("factom == spammer") but I guess it must work, or they wouldn't keep doing it.

Either way, you can't assume a connection between factom and the thief just because because factom sent some dust to the same addresses that hold the stolen coins.

How THE FUCK is a cold wallet jacked??? "We were alerted" yeah fucking right. Did mullick have to stop his reach around on you for five seconds to "alert" you?? Because your tight ass security did not scan every time before putting the cold wallet online?

You don't put cold wallets online. Because they are cold.

ALL THAT'S PENNED IN THE TRUST SECTION OF THIS FORUM IS NOT INDEXED BY ANY SEARCH ENGINE ON THE INTERNET. Pretty amazing, eh?

That's because you can't see trust feedback if you aren't logged in. Presumably the search engine spiders don't log in when crawling the web.
legendary
Activity: 1540
Merit: 1011
FUD Philanthropist™
vip
Activity: 1428
Merit: 1145
well -8
https://bitcointalk.org/index.php?action=trust;u=93918

at least someone negged him (Vern)

EDIT:
Me ? -16
Vern = -8 ?

WTF ahahhahah

who fucking cares if someone negged him

we need fucking money, all money, right fucking now

i dont mind if he already has 666 neg repo

I'm here to happily report that all moneys will be returned quickly and in full just like when Mt Gox went dark.
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