Topic: So Cryptsy's CEO predicted this would happen. - page 2. (Read 1556 times)

It is better to use good&reputable exchange with long traditions that trying to find a deals and trade bitcoin on your own imo.
It is true that we have some major exchange flops in the past with the Mt.Gox failure at the top of the list. But it all could have been avoided.

If you are so paranoid about exchanges why don't you try https://gemini.com/ I doubt that they will ever have problems with stability.

I say just wow
I hate exchanges. You give them your coins & they go out buying a house then running away with investor's coins. Seems like their typical script.

I think its possible the "hack" was just a diversion. An excuse for why they were shutting down and why they had no money to return to customers (which was of course a lie. The wife has stated rather clearly in divorce proceedings that Vernon holds a significant amount in Crypto. This is almost certainly the Cryptsy funds). Vernon mentioned specifically in the divorce proceedings that income for the company had dried up weeks before any of the Cryptsy customers were notified, and that he expected the company to shut its doors. He even mentions he had no salary. The part about "economic conditions" I think was just to give the court an excuse.

What I think happened was Vernon knew his wife would go after everything non crypto because the court would really have no way to get Vernon to give up his crypto holdings. So he made claims that the company was failing and had no income, and therefore had nothing to offer. Which it was actually failing, except that he conveniently left the reasons out, instead stating "economic conditions" as the cause.

Personally I think this is a test of the American judicial system. Those holdings that are being fought over in court do not belong to either Vernon or his wife. They belong to Cryptsy customers. The fact that they're even allowed to have discussions about who gets assets that likely don't belong to either of them boggles my mind.

One thing is sure, when the money goes, the spouse goes too. {80% of the time} His wife has seen this coming for a long time, and she is going to lose that house as part of the settlement to the

money owed to the members of the class action. The divorce court will have to settle any debt acquired first, before paying out any money owed. While he is banging Chinese girls in China and paying

in Bitcoin, his ex-wife is left behind to pick up the pieces.  

What a selfish move by nettles and vernon. They used cryptsy's customers funds for their personal expenses. Vernon knew it was going to fail at some point but again didn't do anything to improve the situation. And now, after being too late to act upon the failure, they don't seem to give back people money  (wow, there's no words that describes them). KARMA will happen.

yes there is no reason to hope to get lost coin back from cryptsy. 

I see, so its mismanagement and greed? With relationship problem with his wife,and finally lead divorced his finances was affected that lead to devastation.What about this hacking incident (in cryptsy),its just a diversion?

What happens next is the lawsuit against Cryptsy has been updated to include the estranged wife of Paul Vernon. IMO this is good for Cryptsy customers, really bad for the wife.

Its stated in the divorce filings that the majority of marital assets were held in crypto currencies, which are essentially out of control of the divorce court because Vernon has fled to China. But because the wife was also a beneficiary of the 1.4 million dollar home purchased with customer funds, they believe she's liable. It means the lawsuit might be able to recoup some additional money, but I wouldn't hold my breath.

It sure seems to me that Paul Vernon had been planning this for some time. Scumbag.

There is in fact a class action lawsuit filed in Florida against Paul Vernon and Cryptsy.  I was told by one of the lawyers not to expect to get much from it because the money is probably mostly all gone (and the lawyers get a huge chunk of what's left).

Yikes - Cryptsy funds diverted to purchase 1.4million property in Florida.  So what happens next?  Is there a class action lawsuit with Cryptsy members?

He also claimed that it would dissolve due to "economic conditions" - I am not understanding what he is talking about, isn't this just poor bookkeeping?

According to a Florida divorce court, anyhow. What I'd like to know is how he thought Cryptsy members wouldn't be ticked... http://www.coindesk.com/court-cryptsy-ceo-predicted-exchange-failure/