Sad news from Cryptsy | Bitcointalksearch.org

CryptoCanary

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Quote from: FinanceUS on February 15, 2016, 08:43:31 AM

Quote from: bitspill on February 14, 2016, 01:06:26 AM

Quote from: Dogedarkdev on February 13, 2016, 08:29:33 PM

Quote from: barrysty1e on January 15, 2016, 11:07:32 AM

The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

^ what an idiot. clearly he didn't even actually compare them, because the lucky7 coin does have an irc backdoor, and the batcoin source does not.
dooglas summed it up pretty well in his "issue"

https://github.com/alerj78/lucky7coin/issues/1

maybe barrysty1e cant read.

In addition to Dooglus' explanation if a diff tool is used you can clearly see the new code that barrysty1e claims isn't there.

https://www.diffnow.com/?report=8u6xk

Yes but Cryptsy could just disable irc in the code and such hack could then be avoided.

I do not think Cryptsy could just disable IRC, FinanceUS. Coins cloned prior to the 0.6 release of bitcoin use IRC to find peers. In more recent cloned versions of bitcoin's source it is still implemented and can be enabled using the -irc command line option. Disabling or removing IRC from a coin would not only cause it to loose this ability, it may in fact, cause the coin to not function as it does need the ability to find peers. I have not inspected Lucky 7's code to know which version of bitcoin it was cloned from or if it was cloned from a subsequent clone. But, in any form and in Cryptsy's defense, blindly removing or disabling sections of code, especially what very well may be fundamental code, is not a good practice. I am not saying Cryptsy could not have avoided this. Simply, I am saying, disabling IRC is not the way they could have been expected to avoid this because, surely their staff knew of the core necessity of IRC in coins.

Take a peek in your favorite coin's debug.log file. Search for IRC.

FinanceUS

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Quote from: bitspill on February 14, 2016, 01:06:26 AM

Quote from: Dogedarkdev on February 13, 2016, 08:29:33 PM

Quote from: barrysty1e on January 15, 2016, 11:07:32 AM

The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

^ what an idiot. clearly he didn't even actually compare them, because the lucky7 coin does have an irc backdoor, and the batcoin source does not.
dooglas summed it up pretty well in his "issue"

https://github.com/alerj78/lucky7coin/issues/1

maybe barrysty1e cant read.

In addition to Dooglus' explanation if a diff tool is used you can clearly see the new code that barrysty1e claims isn't there.

https://www.diffnow.com/?report=8u6xk

Yes but Cryptsy could just disable irc in the code and such hack could then be avoided.

bitspill

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Quote from: Dogedarkdev on February 13, 2016, 08:29:33 PM

Quote from: barrysty1e on January 15, 2016, 11:07:32 AM

The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

^ what an idiot. clearly he didn't even actually compare them, because the lucky7 coin does have an irc backdoor, and the batcoin source does not.
dooglas summed it up pretty well in his "issue"

https://github.com/alerj78/lucky7coin/issues/1

maybe barrysty1e cant read.

In addition to Dooglus' explanation if a diff tool is used you can clearly see the new code that barrysty1e claims isn't there.

https://www.diffnow.com/?report=8u6xk

Dogedarkdev

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$XVG - The Standard in Crypto as a Currency!

Quote from: barrysty1e on January 15, 2016, 11:07:32 AM

The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

^ what an idiot. clearly he didn't even actually compare them, because the lucky7 coin does have an irc backdoor, and the batcoin source does not.
dooglas summed it up pretty well in his "issue"

https://github.com/alerj78/lucky7coin/issues/1

maybe barrysty1e cant read.

barrysty1e

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Quote from: Lightsplasher on January 15, 2016, 01:36:29 PM

Quote from: barrysty1e on January 15, 2016, 11:07:32 AM

The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

Something doesn't seem to add up right to me. If your running an exchange you should be building daemon code from source and not put any executables from an unknown source on critical to function computers. Since we have access to the code in question I would really like to hear a detailed technical explanation of how the code could have been used in this way.

If you ask me transparency is critical in any exchange (or any big institutions) right now. We deserve the right to know what is happening at the time it happens and not a year and half later. Trying to turn a “profit” after such an event is just plain ridiculous imho. Where's the value for 13,000 BTC and 300,000 LTC really being taken from if you think about it?

I really don't wish this situation on anyone and hope things turn out fine for everyone at whatever the outcome.

They do build daemons from source; they also audit any code before compilation/acceptance.
They also run each daemon in a chroot/jail meaning individual daemons are isolated from each other.

What i posted was the IRC module from Batcoin vs Luckycoin, they are nearly identical. My point was that the LuckyCoin accusation is a load of crap. Irc.cpp is literally a tiny IRC client that logs onto public IRC nodes, so they can find other peers to communicate with

In fact, go to github.com, type 'irc.cpp' (without the quotes) into the search box and see how many coins have this mechanism.

Next person who continues to believe BigVern is going to cop a belt from me.
His cloak and dagger/divert attention tactics are so obvious.

Woody20285

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Supporting DMD, ERC & PIO

Quote from: fauceteer on January 15, 2016, 08:00:16 PM

Just got the bad news.
Are all assets frozen on Cryptsy ? Or only BTC LTC. Hence can I pull out my DASH?

Website is not working at all - you can see your balances but no buys or sells. Closed for business.
It strikes me that an easy way to steal that much would be to claim you were hacked... and head for an island.

fauceteer

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Just got the bad news.
Are all assets frozen on Cryptsy ? Or only BTC LTC. Hence can I pull out my DASH?

Hash72

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★YoBit.Net★ 350+ Coins Exchange & Dice

There is no complete trust in any EXG(platform against hackers or administration itself) around .so better to keep your coins safe in fully encrypted wallet ,so better to hit - trade - safe and quick return to the wallet () .

MisO69

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My mule don't like people laughing

I don't know the details of his divorce, but if his ex is trying to get his money then why not fake a hack. Keep all the BTC in a wallet for now and say its the hackers wallet. Ex-wife gets nothing.. A few years later he retires to another country without extradition treaties to the US.

seedooroff

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Hello! Theft with cryptsy occurred much earlier than the loss are correct.
It is also strange that the thief has not yet been cashed BTC (they are not on any of the exchanges, and they are on the private purse). I think it's made himself Vern, trying to stock up on "golden parachute". Do you think I'm wrong? But remember that the faithful continued to accept deposits in the last days, when he was preparing the announcement of the closing. Vern was responsible for the means of the users and earned it, so he has to compensate fully for the damage to his negligence. Now we have to put an ultimatum: "Either Vern returns the money somehow, or he goes to jail!" Do not blanch it, he tries to cross everything on the shoulders of the user when he is guilty.

Lightsplasher

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Quote from: barrysty1e on January 15, 2016, 11:07:32 AM

The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

Something doesn't seem to add up right to me. If your running an exchange you should be building daemon code from source and not put any executables from an unknown source on critical to function computers. Since we have access to the code in question I would really like to hear a detailed technical explanation of how the code could have been used in this way.

If you ask me transparency is critical in any exchange (or any big institutions) right now. We deserve the right to know what is happening at the time it happens and not a year and half later. Trying to turn a “profit” after such an event is just plain ridiculous imho. Where's the value for 13,000 BTC and 300,000 LTC really being taken from if you think about it?

I really don't wish this situation on anyone and hope things turn out fine for everyone at whatever the outcome.

barrysty1e

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The luckycoin scapegoat is so unbelievably pathetic.

Compare:
https://github.com/alerj78/lucky7coin/blob/master/src/irc.cpp
https://github.com/OriginalBatCoin/BatCoin/blob/master/src/irc.cpp

This is how many early coins found their peers.

Not only did BigVern rip everyone off, he used such a pathetic excuse which he knew everyone who can't code would believe.
Its hype like this, from people repeating 'fings they herd' - that has ruined cryptocurrency.

Acidx

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Silk road 2 all over again?

Splatters

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★YoBit.Net★ 1400+ Coins Exchange

I'm not using crypsty for a long time now, I don't know why, but I started using another exchange and I don't have BTC left or alt on cryptsy.
Anyway, what's happening it's not a good thing, this means that every exchange can die soon, but this is not the news. Tomorrow could born a new exchange and even trex or ccex could die. Better be prudent with our coins.

X68N

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Quote from: onemorexmr on January 15, 2016, 06:33:27 AM

Quote from: DeCrypterManiac on January 15, 2016, 06:29:31 AM

Quote from: tbearhere on January 15, 2016, 06:27:42 AM

Quote from: X68N on January 15, 2016, 06:21:26 AM

Quote from: tbearhere on January 15, 2016, 06:14:35 AM

Did anyone take into consideration that allegedly vern is in a divorce proceedings?
Had link but they changed it.

you mean he stole the money because of court debts from divorce ?? xD wtf

No a possible legal battle over the cold wallet. I think the court would freeze it until ?

When you have money - you have girls - when the money 's gone - the girls are too... Always the same, all around the world...

IMHO you know the wrong type of girls

not the wrong type, the common type!
I know the only way to avoid this divorce theft from a women, is to not marry a women under your own wealth status!
That is the only Soloution to not get divorce robbed. If you own a business, date only women with similar value assets!

damn the truth came out quickly, the damn b**** thinks she can grab our funds? i mean its client money not verns money , stupid greedy wh**** , i am really pissed ~2,5K* on the edge.

here i found this on youtube:
https://www.youtube.com/watch?v=PmozhPZncvo

onemorexmr

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Quote from: DeCrypterManiac on January 15, 2016, 06:29:31 AM

Quote from: tbearhere on January 15, 2016, 06:27:42 AM

Quote from: X68N on January 15, 2016, 06:21:26 AM

Quote from: tbearhere on January 15, 2016, 06:14:35 AM

Did anyone take into consideration that allegedly vern is in a divorce proceedings?
Had link but they changed it.

you mean he stole the money because of court debts from divorce ?? xD wtf

No a possible legal battle over the cold wallet. I think the court would freeze it until ?

When you have money - you have girls - when the money 's gone - the girls are too... Always the same, all around the world...

IMHO you know the wrong type of girls

DeCrypterManiac

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Quote from: tbearhere on January 15, 2016, 06:27:42 AM

Quote from: X68N on January 15, 2016, 06:21:26 AM

Quote from: tbearhere on January 15, 2016, 06:14:35 AM

Did anyone take into consideration that allegedly vern is in a divorce proceedings?
Had link but they changed it.

you mean he stole the money because of court debts from divorce ?? xD wtf

No a possible legal battle over the cold wallet. I think the court would freeze it until ?

When you have money - you have girls - when the money 's gone - the girls are too... Always the same, all around the world...

tbearhere

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Quote from: X68N on January 15, 2016, 06:21:26 AM

Quote from: tbearhere on January 15, 2016, 06:14:35 AM

Did anyone take into consideration that allegedly vern is in a divorce proceedings?
Had link but they changed it.

you mean he stole the money because of court debts from divorce ?? xD wtf

No a possible legal battle over the cold wallet. I think the court would freeze it until ?

X68N

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Activity: 672

Merit: 500

Quote from: tbearhere on January 15, 2016, 06:14:35 AM

Did anyone take into consideration that allegedly vern is in a divorce proceedings?
Had link but they changed it.

you mean he stole the money because of court debts from divorce ?? xD wtf

tbearhere

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Did anyone take into consideration that allegedly vern is in a divorce proceedings?
Had link but they changed it.

pc888

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https://bata.io

Not good news which ever way you look at it.

MikroTik

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I don`t know what to say to guys which loose coins on cryptsy, but notsofast talked about this a year ago on twitter to withdraw all funds.

ethought

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Quote from: CryptoMaik on January 15, 2016, 03:54:58 AM

Damn... i lose a lot of coins when cryptsy closed the doors.

Unfortunately, I had long been suspected that the problems with crypsty causes by hacking. I was unable to withdraw.

You see...even cold storage are not safe.

What Cryptsy had was NOT a cold storage wallet if someone was able to withdraw coins from it.

It was a hot (or warm at least) wallet or inside job, I suspect the former.

CryptoMaik

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Blockchain entrepreneur✔

Damn... i lose a lot of coins when cryptsy closed the doors.

Unfortunately, I had long been suspected that the problems with crypsty causes by hacking. I was unable to withdraw.

You see...even cold storage are not safe.

CryptoCanary

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Canary in the crypto mine!

I wrote a quick article about the topic. http://us.newsbtc.com/something-is-out-of-the-bag-at-cryptsy-cat-or-truth/

I hope I summarized the sentiments of the community well.

cinnamon_carter

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It's about time -- All merrit accepted !!!

no excuse for waiting such a long time to disclose shortage of btc

i cannot defend their action , but i will state that those who continue to try to handle bitcoin or other coins with 'old style money' solutions, like bankruptcy, lawsuits ect will always fail

the most important sentence of what cryptsy's post said is a solution may only come from the bitcoin community ====

had they posted this information as soon as they were aware with all details of how /when and exactly what code was run on thier system it would be a lot more likely to find out what happened when ....

again not defending allowing deposits to continue or such but people need to stop seeking old style solutions to problems created by the action of people mishandling others private keys ect.... which is how i see this a matter of trust.....

get used to the fact that you can sue someone in the US and get a judgment, they can file bankruptcy and if they were incorperated you won't get a f'ing dime

but no court or siimilar authority back by 'guys with guns' (which is all that backs up dollars, euros ect,....) can produce or refund bitcoin

it was designed with those who have a vision for the future beyond these outdated systems

I hope people will start learning this ...... before anyone else has to lose anything.

Bluestreet

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This shouldn't surprise anyone. Look deep within yourselves and you know they were adding some really dodgy currencies that were blatant scams.

enhu

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bankruptcy? nice! Grin

I don't believe about hacking. Exchange sites secure their websites to all penetration and they knew this well for hackers are always there keeping an eye for every opportunity. If its indeed true, the hacker just did it after cryptsy's scamming.

d-trix

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Quote from: jimlite on January 15, 2016, 01:01:44 AM

Or it could be a Cryptorush excuse. Big Vern is like O.J., still looking for the real killer.

Not much of a difference both of them got hacked big time.

shitalsmenon

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Only thing now is to :- do remember all the Cryptsy team , Cryptsy fanboyz and devs that were along/supporting in this show all the time together for future such events be caught quickly ! As its the same people making making GOX show repeat again and again ! Specially the fanboyz who where telling i totally trust Cryptsy and they never go poof ! Similar to Garza fanboys ! Without this fanboyz, truth would have came out pretty soon ! Blind dumb herd mentality followers !

bitspill

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Just in case...

https://archive.is/7pzRf

Code:

Announcement
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://bitcointalk.org/index.php?topic=295157.msg6861797#msg6861797
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 indefinately 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.
Jan 14th, 2016

jimlite

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Or it could be a Cryptorush excuse. Big Vern is like O.J., still looking for the real killer.

Robertt

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Quote from: X68N on January 15, 2016, 12:44:24 AM

i can see why they waited 1,5 years , to avoid a complete crash.
They decreased the liabilities from 13000 to 10000 BTC which is a good thing which justifies this action.
If they did just shut down 3000 BTC more funds where missing.

And for the hackers i watched the scene (10 years) long enough to maek a judgement for myself.
The old categories black/white/grey-hat script kiddies is just a point of view, since you never now for sure until the police get them in jail.
I am just sick of this BS, but thanks for your comment.

greetings

Police don't put hackers in jail. Sure they catch very few, but the majority never get caught or questioned.
When I was 12-13 years old I would do very stupid things, such as injecting websites with my name, cross site scripting with sites, defacing & destroying sites, stealing & selling databases, some of the bigger stuff, etc. Nothing too bad like stealing 5 million but some of the stuff I was doing was still a criminal offence in some places, including my country/state. Funny thing is I never used any sort of protection, my IP was very easy to trace, and yet nothing happened. The categories aren't just a point of view, it's a way to describe them. The real hackers don't need to use things like script kiddies. Others just help with security, and the rest are in between.

Everyone is sick of the hacking bullshit that is used when someone's account scams, when a site loses money, when a person needs an excuse, etc. I'm tired of all the people using the same shitty accuse, it is pretty annoying how no one can at least come up with a better excuse. They claim that the cold wallet funds were stolen due to a Trojan infection but that makes no sense because they said the Trojan was uploaded in the site as a backdoor, and last time I checked cold wallets/storages weren't stored on websites.

X68N

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i can see why they waited 1,5 years , to avoid a complete crash.
They decreased the liabilities from 13000 to 10000 BTC which is a good thing which justifies this action.
If they did just shut down 3000 BTC more funds where missing.

And for the hackers i watched the scene (10 years) long enough to make a judgement for myself.
The old categories black/white/grey-hat script kiddies is just a point of view, since you never now for sure until the police get them in jail.
I am just sick of this BS, but thanks for your comment.

greetings

Robertt

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You can't blame the hackers for this, if there even were any hackers.
Out of the big amount of legitimate hackers, only a smaller amount use their skills for bad. The other ones who are theirs aren't crooks, they use pre made tools and think they are hackers.
You have to blame cryptsy, because first of all; they lied about it for a whole year. Why would you do that? Because you want more people to deposit, meaning you get more money for yourself. If they were actually hacked they would have admitted it and not waited a year. Bounty hunters will think the BTC isn't worth hunting so the bounty they set won't be paid, and it gave them more than enough time to use/hide the BTC.
I'm not sure why you call them hacker pigs, most hackers do what they do for a reason and most of them help instead of harming. You don't hate hackers, you hate script kiddies.

X68N

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i began to hate hackers more and more i grew older, think like they are hacker pigs Sad

http://blog.cryptsy.com/

there is a slight chance of a soloution but in general if cryptsy claims bankcruptsy this will be the next big bad news for cryptocurrencies.
I for my self as longterm investor lost my faith in the crypto project. The security measurements cryptsy had taken seems not enought.
So for an average, the task of securing cryptos values is like black magic.

"Well" done hacker pigs, another nail into the coffin of the cryptocurrencies.

Topic: Sad news from Cryptsy (Read 4228 times)