Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 341. (Read 1007075 times)

Its no wonder they wanted that prime controller and Garza's volume now right? Remember xmas 2014? That was a few months after the hack BigVern would have been grasping at anything he could get volume wise to make that back..


However after 1 year they were able to reduce losses from 13,000 btc to 10,000 btc... that's 3000 btc in a year if price accelerates it would have taken them forever to pay back.

Also that china exchange if its to be believed that the scripts were sold... are they vulnerable? whos to say it was an irc bot? I suspect cryptsy china was a desperate effort to get some china customers to make the rest of the worlds user funds in normal cryptsy whole.


We need some Horus truth now... its out in the open and I suspect our boy horus knows more than he said due to NDA or something else....

ahh, i noticed that too... very very strange, maybe that was "hacked" too?

Vern- if your reading this. how does it feel to have to have had an attack on your site to come clean about what was going on? very very sad, i look forward to getting my funds back through a lawyer or the courts, i vote bankruptcy

A word might be missing there. Couple dozen, couple hundred?


He's reading this thread, no worries. Although the blog post was not signed, so who's "he"?

i like how he wants our input, but really no way to contact them haha. the chat was disabled, wasnt it?

Hmmm this isn't too good

very good questions . We need more details about the alts holdings.
I have many stucked there  

edit : ahh , he said


plz define "a couple other"  

for missing BTC - cryptsy produced an explanation

but why all other altcoins are blocked?

Damn. I feel sorry for all of us having funds there. And to lie your customers for over a year and a half is unacceptable!!!

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.

This is probably the biggest pile of poo in this whole story. You have $5mil stolen and you can't find a way to get the law enforcement on it? In 15+ months?

Gross negligence? Failure to report a crime? This can't be just brushed aside as not wanting "to cause panic".

And how does one steal 10k+ from a COLD WALLET? In one TX:

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

That's one of the things I said I doubt its divorce likely hacked, sec or something more nefarious...

My big question now is did horus know and just refuse to say under NDA etc? He can say now because its on the blog... as the security guy either he was in the dark or held back and if he held back and continued to work then its pretty unethical.

So all along the fudders saying that cryptsy never been hacked were lies... Vern's hit on coinfire saying that cryptsy had issues was bs... ? This is dodgy as vern should of reported it at the time.

Funny how the trollbox on cryptsy is all empty now where are the admins facing the music?

LOL, this shit's too funny. I love how Vern just thinks he can give three ultimatums and just like magic all will be forgiven. 
That dude is nuts. 
He's going to jail for this shit. 
Like... How could you think covering up the hack and paying it outa pocket is going to work? 
Not only that.. He was still taking deposits up till a few minutes ago. 
Anyway,... His goose is cooked. 
Game over for cryptsy. 

so how can i get in touch with a lawyer/ court to get my coins back? i hear there is a few lawsuits going on. any ideas? and if they do file for bankruptcy, will i be notified?

Right. So they lied for a year and a half but it's Coinfire's fault that the shit hit the fan.

Seems this guy was right back in December:

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


"Cryptsy has had problems for some time now and it’s time to let everybody know exactly why.  These problems were NOT because of any recent phishing attacks, or even a ddos attack, nor does it have anything to do with me personally.
About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies.   After a period of time of investigation it was found that the developer of Lucky7Coin had placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit.   This Trojan had likely been there for months before it was able to collect enough information to perform the attack.  It does not appear that this was the original developer for LK7, as on 5/22/2014, we received this message from the new developer who wanted to maintain the codebase:
—
Hello,
Lucky7Coin is not maintained and I would like to take care of it. I have announced that on bitcointalk.org in Lucky7Coin thread. You’re the only exchange for this coin and I hope you will let me take care of it. I’m responsible. You don’t have to be afraid of errors or forks. I’m developing multipool and I know bitcoin internals and protocol.
https://bitcointalksearch.org/topic/m.6861797
For a start I’ve changed irc network, so clients could synchronize blockchain. Please upgrade as soon as you can.
Github repo:
https://github.com/alerj78/lucky7coin
Branch “master” will always be for stable version, branch “devel” could be dirty. In a 2-3 weeks I’ll release new version with p2pool support and checkpoints. Before that I’ll contact you to check few blocks hashes for checkpoints and make sure there is no fork.
I hope we can cooperate and make this coin live again!
Jack
—
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.
If you happen to be the perpetrator of this crime, and want to send the coins back no questions asked, then you can simply send them to this address:  
1KNi4E4MTsF7gfuPKPNAbrZWQvtdQBTAAa
If they are returned, then we will assume that no harm was meant and will not take any action to reveal who you are.  If not, well, then I suppose the entire community will be looking for you.
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.
I think the only real people who can assist with this are the people of the Bitcoin community itself.
Trades and withdrawals will be suspended on the site undefinately until some sort of resolution can be made.
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."



It appears they have removed their chatbox from the site entirely. Any messages you see showing up in SuperTrollbox are from users who still have a window open with the chat in it.

Their NEWEST development / drama may just be a coincidence.

Timing wise it's fishy but that is all we have to go on.. and we have to be honest coincidences DO happen.

What i am saying is the previous activity posted here for 100+ pages *may* have nothing to do with the last bit of the story.

I'm waiting to see what BigVern says..
He said he would speak up a couple days ago and it's been a couple days..

But if i put my tinfoil hat back on
It is possible they had lost / stolen BTC internally by accident or on purpose months ago or all along
and ARE just now coming up with this next "phishing" excuse to cover it up.. or maybe they were just phish scammed ? LOL

Based on what info we -DO- see such as money flowing away from Cryptsy by tracked TX's
we see a big account that has 6 million in BTC and the guy that dug up info on that also had
more info on that which lends credibility to his digging..
So it sure does look like BigVern has been siphoning away large amounts of Bitcoin for a long time. (or his standard practice)
All the various stories & delays etc might be his way of covering it up.

My most likely scenario is he has been investigated by the Fed's and can not speak about it and
they in turn cut off access to his cold wallet during the investigation.
OR..
He normally had a large amount of BTC in his cold wallet and obviously never expected us to see it.
And his latest excuses are because he is hiding his 6 million dollar's worth of Bitcoin stash
to hide it all from his Wife's divorce lawyers.
Either scenario is highly plausible in my eyes.

And both of those above may seem like he is just looking out for things.
Maybe his intent is NOT to rip-off customers with the big cold wallet ?
Maybe he is actually doing it to make sure he DOES NOT lose customers BTC on the exchange. (from Wife's divorce Lawyer)
If so it still does not absolve him of his responsibility to his customers.
By making sure the exchange WORKS moving coins in a timely fashion and..
THAT he keeps us all informed !
The disappearing act stuff is not acceptable at all !

Their long time history and their staff activity etc is still bad at times.
Paycoin ? Mintsy ? Cryptostocks Share Pay out's ? Staff shenanigans etc..

The divorce stuff seems to be happening precisely at the same time so i don't know..
There is a hell of a LOT going on with this story ..hard to keep track of it all.
Like where does the Cryptsy China site "Chintzy" fit in ?

No matter what BigVern has to face the music over this sooner or later.
His lack of public appearances telling us what is going on for 4 months
tells me something big is going on.. and he probably thinks the public pissed off at him is the least of his worries.
It's possible the dozen companies / sites named by his wife's lawyer are in jeopardy
and while that is happening he may be in the middle of a secret US Federal investigation..
More than likely he is overwhelmed and probably doesn't care about the crowd watching & wondering.

@Gleb Gamow
I am running low on Cookie reserves and need to buy more, before i can get any more munchy pic's to post.

EDIT: spelling corrections as usual guys

Yeah, looks like she's going to blow soon. It looks like she could slip below the waves at any minute.



I wear this notification proudly. It's a badge of honor.

I really didnt want to believe in this Cryptsy scenario... Was just reading the topic and following story unfolding. But it seems obvious now it was all true.

It is never good to cover up the truth. That was the big mistake. If they were hacked or had their coins stolen they should have come clean and face the consequences...

Has anyone tried to sic law enforcement on them yet?  I'm sure they've broken all sorts of security laws and the longer they are allowed to keep postponing things, the more time they have to get away. But I don't think they will.