Cryptsy: ‘We Have Never Been Investigated for Anything’
This week, CoinFire reported that the US Securities and Exchange Commission (SEC), the Internal Revenue Service, FinCEN, Department of Homeland Security, and other government agencies have officially launched multiple investigations into Cryptsy International LTD, a Belize-based bitcoin exchange headquartered in the US and Canada. Cryptsy allegedly engaged in fraudulent operations with GAW Miners, a defunct exchange founded and operated by Josh Garza, the creator of a multi-million dollar cryptocurrency investment scam PayCoin. Government agencies and law enforcements including the SEC....
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The popular cryptocurrency trading site Cryptsy.com has been having some noticeable issues these past few hours. Users of Cryptsy have been reporting negative balances, frozen transfers, suspended withdrawals. Speculation is that a recent update is causing the issues. Cryptsy is aware of the issues, but no official statement has been released yet. Who's been hit? I spoke to BlackDogeOfWallSt, one of the developers of BlackCoinPool.com (BCP), which has probably been the hardest-hit community from Cryptsy's problems. BCP has had to delay their payments due to the problems. BCP's payouts have....
In what has been one strange and cryptic piece of news after another about the troubles that Cryptsy and its founder have been surrounded by, an update of the class action lawsuit against them has been released and it expands the subjects of whom is liable for the lost assets over the past year and a half. In what seems to be a mixture of both information compiled from Cryptsy’s last updates of their blog, the founder Paul Vernon’s Twitter account and some individually investigated findings, the class-action lawsuit’s updates increase the level of criminal allegations against Cryptsy....
A user on Reddit just explained that he was able to withdraw 60 Bitcoins from Cryptsy even though his balance was 0. His current balance is now -60. This guy must be one of the most honest Bitcoin users out there, letting Cryptsy know about the failure and even sending the Bitcoins back. As he says, it is someone elses Bitcoins. Creds for this guy. He writes: I have sent back the 60 BTC I was mistakenly able to withdraw from Cryptsy. If this affected you too, please do the same. Don't take someone else's bitcoin. Xmas is coming up : ). We advice all of our readers to withdraw their OWN....
This writer has received more complaints about Cryptsy since his last story on the subject than he has billing notices. Seriously. Some of them were messages of support, some were further complaints. Most of them had a common theme: Cryptsy won’t let the customer withdraw his or her funds. Within the last 24 hours, Cryptsy had some serious downtime. Their message was simple and, at this point, expected: “Trade engine and withdrawals paused while we investigate cause of lag. Your patience is appreciated. Thank you.” Something should be gotten out of the way: with as many dissatisfied....
Today, the Cryptsy team has a total liability of 10,000 BTC, which based on the price of bitcoin at the time of writing is equivalent to US$3.8 million. As of now, the Cryptsy team is is trying to find a new owner or an investor to take over the exchange. The Cryptsy team considers “Spread the loss to all users in the system and allow trades to continue.” The alleged operator of Cryptsy stated that many suggested this option for the Cryptsy team to implement. However, by the looks of the users, it seems like not many users will be willing to adapt to this “solution.” Cryptsy, amid various....