CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 340.

Spoetnik

legendary

Activity: 1540

Merit: 1011

FUD Philanthropist™

Quote from: suchmoon on January 14, 2016, 11:18:39 PM

Quote from: ?? on ??

Quote from: craptsy_sucks on January 14, 2016, 10:41:17 PM

New update!!
http://blog.cryptsy.com/post/137323646202/annoucement

Show of hands ? How many people are genuinely surprised ?

About time they came clean.

I am a bit surprised how utterly idiotic this is. Poor security practices, trying to conceal huge loss, letting the site bomb completely before coming clean... but yeah, a hack was something most predicted.

Ya like he takes a pre-compiled LuckCoin wallet and runs it on his machine with ties to millions in customer funds ?
Further more i already heard waaaay back that they have to compile the wallets themselves so that has to be a lie !

spamsucks

sr. member

Activity: 306

Merit: 252

I have another question... the phishing email that came out was being talked about yesterday here: https://bitcointalk.org/index.php?topic=1325850.new#new

In it you see this:

Hi, Cryptsy ceases its activities in the wake of the theft of most of Bitcoins from the COLD storage.

You can start a refund procedure at the link:
http://removed-website.xxx/

Please accept our apologies.

Funny enough that whoever sent the e-mail might have had some idea of what was happening...

suchmoon

legendary

Activity: 3654

Merit: 8909

https://bpip.org

Quote from: o0o0 on January 14, 2016, 11:53:52 PM

I think the lost funds were cold storage which begs the question... manual moving of coins was needed to refill.... so how did that hack happen if its offline?

Doesn't look like cold storage. Most funds gone in one transaction, not a slow bleed via refills:

https://www.walletexplorer.com/txid/c7b46a79fd8887038bd3a8e884b04820038415a60e0b9d2c2f5bcff68a2687bf

Loading...

Edited 2020-11-28 to fix a broken image

RoyalSands

full member

Activity: 154

Merit: 100

Quote from: GoldSeal on January 14, 2016, 11:56:14 PM

This is over. Cryptsy just self-destructed. http://blog.cryptsy.com/

Yes, the cat is out of the bag.

GoldSeal

legendary

Activity: 1862

Merit: 1002

This is over. Cryptsy just self-destructed. http://blog.cryptsy.com/

RoyalSands

full member

Activity: 154

Merit: 100

I am... upset

Spoetnik

legendary

Activity: 1540

Merit: 1011

FUD Philanthropist™

BV claimed he did not know who to contact ?
BULLSHIT !

They already said they seize accounts and report people to the Fed's
Then tel them some BS excuse like wallet problems..

So Vern saying he had no idea who to contact is bullshit !

Further more he could have contacted the people he had ALREADY been working with
or called the FBI etc and they would NOT HAVE to make any public announcement.
If an FBI investigation was started why would BV assume he had to tell people ?

VERY poor excuse !

I want to say a lot because all of his story reeks.. but i will summarize..

I think he seen the divorce coming then funneled out 6 million which matches the previously mentioned found coins.
All that to hide the funds from divorce proceedings etc

He probably already had that 6 mill wallet going anyway for years..

I call bullshit on this story of his !

First thing i want to know is does that old 6 million dollar wallet we heard about
is that the same one BV mentioned in his Blog post ?

o0o0

legendary

Activity: 1596

Merit: 1021

Quote from: ph4nt0m on January 14, 2016, 11:48:56 PM

This BigVern's story is an utter bullshit.

1. How come he could run BTC, LTC and some unknown shitcoin wallets within the same physical machine AND virtual machine? I don't do this even on my desktop!

2. 13,000 BTC and 300,000 LTC in HOT wallets? BTC was about $580 and LTC $7.5 at the alleged theft time. That's a grand total of nearly $10 million! Again, in hot wallets? Are you fucking kidding me?

3. All wallets on exchange MUST be encrypted with their keys stored elsewhere in top security. Even if a wallet server is compromised, nothing can be sent out without knowledge of these keys. That's a no-brainer.

I think the lost funds were cold storage which begs the question... manual moving of coins was needed to refill.... so how did that hack happen if its offline?

Starts to make sense now too... the coinfire stories resulted in withdrawals... the change of fee structure was there to combat that.. didn't work.

Paybans.. those were in to generate more money to cryptsy as portion was taken.

Garza prime controller and volumes... more cash to repay hack

Everything fits the grasping at straws desperation. Makes Paul Vernon a slime ball that hid things. Would you trust him in the future if this was fixed? He's done it once likely to lie again. Cryptsy will close withdrawals all soon. Feds come in... Lots of shitstorming. Crypto doesn't need this crap.

Gleb Gamow

vip

Activity: 1428

Merit: 1145

Is it just me, or has the Scam section of this forum gotten extremely active since Cryptsy went down?

spamsucks

sr. member

Activity: 306

Merit: 252

Here were the options given:

Here are our options:
1.   We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements.
-   or –
2.   Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.
-   or –
3.   If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.
I’m obviously open to any other ideas people may have on this.

I will take option 2. I will buy cryptsy as is just the way it sits for the btc in my account. I will sort out the rest later.

Vern, please confirm via email...

Awww nevermind, I still have teh .3 in my account and thats way too much

RoyalSands

full member

Activity: 154

Merit: 100

Quote from: ph4nt0m on January 14, 2016, 11:48:56 PM

This BigVern's story is an utter bullshit.

1. How come he could run BTC, LTC and some unknown shitcoin wallets within the same physical machine AND virtual machine? I don't do this even on my desktop!

2. 13,000 BTC and 300,000 LTC in HOT wallets? BTC was about $580 and LTC $7.5 at the alleged theft time. That's a grand total of nearly $10 million! Again, in hot wallets? Are you fucking kidding me?

3. All wallets on exchange MUST be encrypted with their keys stored elsewhere in top security. Even if a wallet server is compromised, nothing can be sent out without knowledge of these keys. That's a no-brainer.

Patrick?

ph4nt0m

hero member

Activity: 591

Merit: 501

Scavenger of Crypto Sorrow

This BigVern's story is an utter bullshit.

1. How come he could run BTC, LTC and some unknown shitcoin wallets within the same physical machine AND virtual machine? I don't do this even on my desktop!

2. 13,000 BTC and 300,000 LTC in HOT wallets? BTC was about $580 and LTC $7.5 at the alleged theft time. That's a grand total of nearly $10 million! Again, in hot wallets? Are you fucking kidding me?

3. All wallets on exchange MUST be encrypted with their keys stored elsewhere in top security. Even if a wallet server is compromised, nothing can be sent out without knowledge of these keys. That's a no-brainer.

o0o0

legendary

Activity: 1596

Merit: 1021

Quote from: spamsucks on January 14, 2016, 11:37:28 PM

so let me see if I get it...

They got hacked over a year ago and didn't bother to report it? The theft of customers money and they said nothing???

they continued to take in new money and let little bits trickle out... I assume that Vern got paid...

How is this not a ponzi scam?

The feds will be all over this in a matter of days, and will tear the place apart to look for evidence if there is any left to find.
Do you think the admins knew what was happening? If there is any email evidence anywhere that they knew, are they going to jail with Vern?

Probably... karpeles headed that way eventually. I don't think its not my fault the bad hacker did it works in court if you don't declare the hacks straight away.

WhaleOrNot

full member

Activity: 136

Merit: 100

I'm Embarrassed to be here

Considering the chat box is gone.. if any one wants to keep in touch: @BTCFailWhale On twitter Polo on ocasion

God Speed yall.. seriously.

RoyalSands

full member

Activity: 154

Merit: 100

Quote from: ?? on ??

So basically Mullick approved the Lucky7Coin wallet that was infected. That was his job after all.

Is there an echo in here?

Pmalek

legendary

Activity: 2730

Merit: 7065

So reason for implementing Tiers was to slowdown and restrict wds if they can... Was implementation before or after coinfire article?

suchmoon

legendary

Activity: 3654

Merit: 8909

https://bpip.org

Quote from: gnargnar on January 14, 2016, 11:37:42 PM

He really need to give all details on the other alt transactions as well.

We need to see the ltc and other coins "steal" events. all of them.

Also the code for the trojan, logs, etc.

Quote from: spamsucks on January 14, 2016, 11:37:28 PM

I assume that Vern got paid...

Vern bought a million dollar house about a year ago.

RoyalSands

full member

Activity: 154

Merit: 100

So basically Mullick approved the Lucky7Coin wallet that was infected. That was his job after all.

gnargnar

legendary

Activity: 1111

Merit: 1000

crypto-enthusiast since 2012

He really need to give all details on the other alt transactions as well.

We need to see the ltc and other coins "steal" events. all of them.

spamsucks

sr. member

Activity: 306

Merit: 252

so let me see if I get it...

They got hacked over a year ago and didn't bother to report it? The theft of customers money and they said nothing???

they continued to take in new money and let little bits trickle out... I assume that Vern got paid...

How is this not a ponzi scam?

The feds will be all over this in a matter of days, and will tear the place apart to look for evidence if there is any left to find.
Do you think the admins knew what was happening? If there is any email evidence anywhere that they knew, are they going to jail with Vern?

Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 340. (Read 1007121 times)