"Knock knock!"
"Who's there?"
"Cryptsy's intimate connection."
"Cryptsy's intimate connection to who?"
"Cryptsy's intimate connection to the Garza family and Paycoin scam may be of much interest to the SEC since they are taking Josh Garza to court over scamming people out of approximately $20,000,000.00 with his mining contracts shared profit scam.
They may also take an interest in the fact that Cryptsy.com users are waiting weeks, even months for a few hundred dollars in Bitcoin, yet some wacko peonminer proved that their Cryptsy.com-old and new wallets are shuffling thousands of dollars of Bitcoin to a rogue wallet, which is then sent to a $6,000,000.00 address that is appeared to be used in mixing Bitcoins.
They may also be interested in the privy information that may be connecting that mixing address to the Scryptsy scam and another HYIP scam that has recently popped up."
"Oh. Um. Yeah. Don't come in. We have no idea what you're talking about. All of those connections are probably wrong. I'm not sure, but it just doesn't make sense. I would think someone would have caught that by now. Just come back In Two Weeks™. Mein Fuhrer should be back from China then. By the way, his visit to China has nothing to do with
www.bitebi9.com so stop digging, um, I mean, knocking. Oh, and if the SEC asks, you never heard of Scryptsy.com or Mintsy.com . . . understood? I mean, we don't have a clue about those sites either."
So again from my view on working inside Cryptsy the Garza thing just isn't a path as far as Paul. There were some talks but mostly related to InsideBTC in Las Vegas and him wanting to be a part of Cryptsy. That never happened. Can't speak much to Marshall he was there about 5-6 months before he left. As far as the SEC Marshall Long being CTO was not a secret. Honestly most of the stuff you guys are talking about is available to them. I know on the paycoin thing action was taken not sure on the legalities of me speaking to it at this point. When I was at Cryptsy the Fincen stuff was a pain in the ass because its actually illegal for them to comment if someone did something.
I saw lots of posts when I was there where a guy would say his stuff is frozen etc. 99% of the time it was he was flagged and reported to Fincen. But the stupid law says you cant tell them that. It was a painful restriction. So lets say a company did something wrong who was a customer it was likely filed as a SAR. The big downfall with that is Cryptsy couldn't say hey yeah its fucked up so we reported it to Fincen. As that would be considered informing someone they were under investigation. At least my understanding.
I'll add I definitely don't think the current issues are SAR related lol. Unless the system started flagging all users.
As far as what your saying Peon. I don't work there don't really care I'm just telling folks what I know from being an insider within the bounds of the NDA I signed. There are plenty of folks working there who would be all over it if that was the case (at least my opinion) and they would not stay.
Mintsy recently announced a launch of its new cloud mining service as the first digital currency cloud mining company to use proof-of-reserves, accomplished through cryptographic proof-of-hashrate.
Bitcoin Magazine sat down with Marshall Long, who is the CTO of Cryptsy, and more recently CTO and board member at Mintsy, to discuss what he says is unprecedented innovation in the realm of cloud mining.
Mintsy provides users with malleable contracts, which assuages any worries on being locked into a contract they no longer need. Long says users are “able to sell their remaining contract time on the Mintsy marketplace where other folks may want a shorter contract and can bid on contracts that are up for sale by the user.”
Mining the Future
At the time of this post, Mintsy is made up of 20 people, and is the result of a joint venture between Terraboss Inc. and digitalBTC. The development team is spread out between the United States and London, while the majority of the accounting takes place in Australia. DigitalBTC is an Australian company that is publicly traded on the Australian Securities Exchange under the ticker DCC.
With a bitcoin mining pool going strong at more than 5 PH/s, Mintsy offers SHA-256 and Scrypt contracts ranging with flexible three-month and six-month contracts, although “more exotic algorithm contracts will be online soon.”
Thinking Outside The Box: Cryptographic Proof of Hashrate
Long, a serial entrepreneur in the fields of Bitcoin, drones and manufacturing, explains that previously, many cloud-based mining services “got away with lots of bitcoin in the beginning because nobody demanded proof of what they were selling.”
He explains that Mintsy will circumvent all of the problems relating to the auditing that their accounting staff may have to deal with, since all of their hashrate information will be transparent.
Naysayers are given proof that the cloud mining company is not double-selling hashrates, instead running a 100 percent full reserve by having all of their information accessible on the blockchain.
Long has been working with Bitcoin core developer Peter Todd to implement the cryptographic proof-of-hashrate for Mintsy. This feature is still in development with a planned release in mid- June.
Another feature that Mintsy will have is the ability for users to use the website’s service and rent out their rigs to other users for a fee, much like Betarigs.
In the meantime, users can limit their luck variance by allowing their customer base to “take their contract and point it to any pool.” When users don’t put all of their eggs in one basket, the choice in picking their mining pools is “not only transparent, it’s more efficient since your [one] pool is not lucky all the time.”
But is Cloud Mining still profitable?
It’s no surprise that conventional mining is not as easy as it used to be.
“If your electricity bill is very high, then there is no way you can make money mining even with the most advanced of chips,” explains Marshall. To him, cloud mining not only helps those who don’t have access to cheap power, but also provides new users with a way to ease into mining for a very small fee. The company’s smallest contract costs a little under $20, and users can always trade contracts on the Mintsy marketplace.
So, Marshall Long is co-founder of Cryptsy, CTO of Cryptsy, CTO of Project Investors, CTO of Mintsy, and was trying to crawl in bed with Josh Garza while living with Jaime Garza, but had nothing to do with Paycoin, GAW, etc. Hell, I don't even think my bud, Leroy Fodor, could've came with up that story.
Thanks for your insider perspective. We appreciate your feedback. Although, bound by your NDA, it is like reading the back of a bound book. There is so much fruit inside, yet you can not open the book, due to the tightly locked buckle put around it. 
