Cryptsy CEO Recruits Hackers to Recover Lost Coins

Skye Bonnow is an altcoin trader that had 140 BTC swiped from his Cryptsy account in January of 2014. Skye maintains that he adhered to Cryptsy's Terms and Conditions and was still utterly defrauded of his bitcoins. The lawsuit is currently seeking the maximum damages for the lost coins: treble the amount of the current usd value, or $180,000. Skye is using Silver Law Group to bring his claims against Paul Vernon and Cryptsy, who operate as PROJECT INVESTORS, INC. Also read: Cryptsy in Disarray. The Cryptsy Hack. Earlier this year, certain users started to notice that they could withdraw....

Moreover, Cryptcracker has agreed to return the funds in exchange for a 13% bounty, which will add up to roughly 2,000 Bitcoin. That is still a very significant amount of “clean” money to deal with after such a major breach, albeit it pales in comparison to the funds controlled by this person right now. What is particularly worrying is how this announcement makes no mention about the addresses where this fund is being kept. Cryptsy used to be one of the more prominent Bitcoin and altcoin exchanges in the realm of digital currency, even though there have always been minor issues with the....

Plaintiffs seeking to recover losses from Cryptsy, the defunct, Florida-based cryptocurrency exchange that claimed to have lost more than $5 million due to theft, have reached a settlement with one of the defendants, although the principal defendant remains at large, according to a court filing. The plaintiffs reached a settlement in excess of $1 million from defendant Lorie Ann Nettles, depending on proceeds of asset liquidation, according to the filing in the United States District Court, Southern District of Florida. Principal defendant Paul Vernon is believed to have fled to China with....

Cryptsy is quickly capturing headlines and even being referred to as “the next Mt. Gox.” Things do not seem quite as simple as Cryptsy running away, as the unannounced vacating of their headquarters may have suggested. A new blog post from Cryptsy posted January 14th, claims that the loss of funds did not result from a recent malicious or DDOS attack, nor malicious actions on the behalf of any of the Cryptsy staff, as well as a bounty of 1000 BTC “for information which leads to the recovery of the stolen coins.” Instead, the beginning of these problems happened a year and a half ago, and....

In response to Coinfire's article, which piled up a long list of allegations and accusations against Cryptsy, we reached out to Paul Vernon, the CEO of Cryptsy, to try to get his voice out to the public and go through his defenses against Coinfire's vicious attacks!! Here is how the interview went on: Tamer: Who would you narrate to Newsbtc 's readers the "Cryptsy" story? Paul: Cryptsy was created as a hobby, because I was running around 25 different altcoin pools, from litecoin to Mintcoin to Feathercoin and many other coins. I just can't name them all. I had too many different pools and....