Topic: CRYPTSY stopping withdraw locking accounts without notifying users! Class Action - page 528. (Read 1006931 times)

You're interesting.  Cryptsy provides a method to run a ponzi.  As far as I know they don't actually run a ponzi coin themselves.  Profit from?  Absolutely.

Now with these withdrawal limits and other "KYC" crap for coin withdrawals it does appear that Cryptsy itself may be a ponzi... not just a ponzi facilitator.

For what it is worth, in order to trade crypto for crypto (no fiat) on Kraken I did have to tell them who I was and where I lived but I never had to provide documentation to prove it.  They don't ask for documentation until you decide to start trading for fiat.  I haven't traded there in a while so I can't recall if there are transfer limits or not.

Where the hell have you been during the last 3 years ?!

Fyi, Cryptsy set the standard when it comes to inhouse shitcoin ponzis and the shitcoin sweatshop that cloned them. lol

See all those mice with the busted right clickers !?

Since Cryptsy is supposedly abiding by all US laws and statures, exactly why have they opted to have their operation based in Belize under the auspices of an entity located in Florida?

Except Cryptsy is not the creator nor the maintainer of the altcoins.  They are merely a slightly more secure forum than raw P2P to exchange said coins between two people.  When they brought in FIAT to exchange for coins then they became a regulated trading platform.  That's the key.  Without FIAT there is no need for KYC.  So if you don't exchange FIAT at all, ever, KYC shouldn't ever hit your doorstep.

Since you disagreed with me... don't forget to kiss my ass.

Best Buy isn't paying you and Best Buy pays Quarterly Taxes and Sales Tax there and they report a sale for PnL statements. They have accounting and costs of goods and are not exchanging their TV for BitCoin or giving you an Alt Coin as change for your purchase. They do give rewards though and those are written off as Advertising. But if they gave you Best Buy Alt Coins instead that were speculated on then they might have a different outcome. Even though they would still have to say what the coin is worth and that would be the top end so it stops all speculation on the up side.

The Dollar you give them also had to be reported as income on your Taxes and can be used as a write off if you are buying for a business expense. Just not the same comparison at all. Exchanges are held to a different standard. But this is the problem since the exchange knows exactly how many BitCoin or Alt Coin you sent in, so they would know how much you have lost and or made in trades. Then this amount only should be able to be held.

Since Cryptsy no longer makes money on trades and only on withdrawl technically you could setup a trading system within Cryptsy and pay no fees ever. A merchant would cash out to FIAT and that is it. So you setup a Merchant Account inside Cryptsy and Alt Coin is sent in for Free and the merchant gets an internal transfer to their account for a product and then ships you their product and cashes out to FIAT. Of course there may be no one buying but at least the trades are free. So you could setup a virtual Cryptsy Store and money only goes in and then translates back out to FIAT for the merchant. The coin that is bought inside Cryptsy could be BitCoin only too. Now Cryptsy would handle the Volume to FIAT and BitCoin onlly comes in and Goes out through Cryptsy to FIAT or whoever is willing to buy internally at Cryptsy and face the Transaction barrier or hold and play the market to offset a FIAT transfer fee.

Then Cryptsy takes their proceeds and goes to another exchange to sell lol!

BigVern ‏@cryptsy 2 h2 ore fa

Markets added:  SHND/BTC, TRBO/BTC, & LGBTQ/BTC



Son of a bitch!
I've no other words for this person!

Still not an explanation from them after almost one month.

The way they ninja-ed these limits onto their users and the unusual silence from the typically verbal BitJohn et al is a good indication that the whole thing is a big stinky pile of cowcrap.

P2P will never successfully be regulated or monitored.  Nature of the transaction.  What I was bringing up is the fact that businesses that conduct transactions using FIAT (not credit which has indentification as an inherent feature) do not have KYC requirements even for products/items that are in excess of 1k usd.  My simple statement plugs holes in Cryptsy's bullshit excuse for needing more identification.

I can walk into Best Buy and purchase as many Samsung UN78JS9500 TVs (on sale at 9999.98usd each as of this post) as I wish for cash but I can't withdraw more than 100usd per month from Cryptsy without telling them who I am, when I was born, where I live, etc?  That shows that their claim of needing said information is bullshit.  So much bullshit, so little time to shovel it.  Limiting FIAT transactions to 0 until verification of identity is in accordance with KYC.  Limiting altcoin transactions to any number above zero shows there is no KYC requirements at all.

My opinion.  Anyone who disagrees can kiss my ass.  

person to person transactions look like they may not be subject to kyc...as its not with an institution or conducted by professional intermediaries

saw this on wiki:

For the purposes of a KYC policy, a Customer/user may be defined as:
- a person or entity that maintains an account and/or has a business relationship with the bank;
- one on whose behalf the account is maintained (i.e. the beneficial owner);
- beneficiaries of transactions conducted by professional intermediaries such as stockbrokers, Chartered Accountants, or solicitors, as permitted under the law; or
- any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, for example, a wire transfer or issue of a high-value demand draft as a single transaction

KYC is a tricky bitch and I would recommend you ask all questions regarding it to a properly qualified and licensed individual but the general understanding I have is that KYC is not bound to an amount transacted but the type of transaction that occurred:  i.e. banking, gambling, high value products, etc.

question , are individuals who want to exchange btc and fiat, or btc and other crypto,  subject to the reporting requirements of kyc anti money laundering rules, or does that fall under some other statute. For some reason I seem recall something about a $3,000 limit for stuff like that. Or is it $10,000 that would need to be reported. ?

Lawsuit for a probable amount of <$1,000usd in coin... yeah... I can see a lawyer going to jump on that...

While it is fee free trading and the "only" revenue source they claim to be making is withdrawal fees if you don't have the coin to send you have a capital problem; and the only way that I see for them to solve a capital problem is to prevent said capital from leaving your hands (i.e. withdrawal limits).

That is what I believe they are doing: reducing your (and any other non-verified individual) total withdrawal ability to increase total capital to pay out verified individual's withdrawal requests.

I'd love another explanation.  KYC seems to me to be bullshit.  You don't see Best Buy demanding your identification to sell you any of their goods, some of which is way over the value of a single btc.  Why are altcoins, all but one (I think) under 1btc in value each, considered (by Cryptsy) to be high value and then why are they still violating KYC if that's their stance?  That's my question.  I look forward to hearing an answer... but I won't hold my breath.

So when do we see proof of a lawsuit ?

I don't think it is in the interest of Cryptsy to hold off on withdraws as that's how they make money now it's fee free trading. withdraw fee's I doubt the advertising covers costs, Unless of course they have spent every ones coins and don't give a fuck

Someone would please explain me why these assoholes still refuse to put in contact with me, still refuse to verify my account and to process my withdrawals after 26 days?

Note: i've never touched fiat on their ******* exchange, i'm not a terrorist, i'm not a drug smuggler, i'm just someone who was market making 20/25 altcoins for these assholes before i decided to test them.

That is a very good interpretation of the seemingly relevant passages pertaining to kyc anti money laundering guidelines and how they may or may not apply to cryptsy. It is also quite possible that lawyers and kyc consultants who are advising cryptsy have a different opinion. Or they may be out of money, I guess time will tell.  Didn't gox have $5 million seized by US authorities for non compliance...possibly helping facilitate their downward spiral.

And I'll be looking at those numbers in the near future... I really don't see a valid reason for the new non-FIAT tiers as FIAT, in my opinion, is the only monetary/high value product that is currently under the purview of KYC being traded at Cryptsy...

i.e.
https://www.pwc.com/gx/en/financial-services/assets/pwc-kyc-anti-money-laundering-guide-2013.pdf

Go to page 37 for the relevant US mandates as Cryptsy is based in the US.

Very clear that non-FIAT transactions of low value goods (i.e. altcoins) don't apply.


What else is clear... if they decide to state that altcoins are indeed high value assets then there is no "limit" that they can put in place to be outside KYC...  See question 8 on page 38.


Either way, I believe their claim(s) are fake and also believe that this further shows that Cryptsy is only reducing withdrawals as I previously opined.

Found the answer: https://medium.com/@EditorMJ/moving-forward-25f11a51fdfd#.maanbpccu