Cryptsy: Trades & Withdrawals Suspended Indefinitely, Claims Bitcoin Theft
Following months of uncertainty & customer withdrawal difficulties, Cryptsy has revealed that it can no longer go on, in its current state. The digital currency exchange claimed in a blog post today that it was the target of a bitcoin wallet theft on July 29, 2014. The ‘critical event’, as Cryptsy deemed it, has the exchange alleging that 13,000 BTC, approximately, was stolen. The exchange also claimed a theft of 300,000 LTC, approximately. Cryptsy alleges the developer of Lucky7Coin behind the theft, claiming the developer placed an IRC backdoor with Trojan or command and control....
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As the situation surrounding Crypsy continues to unfold, we saw the company post a blog entry stating that the majority of the funds within the company were stolen over a year ago and that that company has been insolvent for quite some time for a variety of reasons, one mainly being the theft of 13,000 BTC and 300,000 LTC. This announcement was coincidentally made just a day after Cryptsy was informed that a class-action lawsuit was being filed against them. So now what? Currently, Cryptsy seems to be in too big of a financial hole to dig itself out no matter what happens and is....
The future of digital currency exchange Cryptsy remains in question following news last week that withdrawals and trading would be put on hold indefinitely and claims from the company it was hacked in 2014. Cryptsy first announced it was insolvent on 15th January after months of withdrawal problems, a situation it, until recently, blamed on technical issues. The insolvency disclosure followed on the heels of a class action lawsuit filed in federal court by Florida law firms on behalf of customers. Since then, the exchange has opened up some of its wallets, allowing customer withdrawals in....
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....
Embattled digital currency exchange Cryptsy is now claiming that it is insolvent. The exchange alleges in a newly released blog post that it was the target of a hack in July 2014, an incident that it said cost it approximately 13,000 BTC ($7.5m at the time) and approximately 300,000 LTC (then $2.08m). Unless the funds are recovered or a buyer is able to cover the losses, the post continued, the site will be shut down and bankruptcy declared. The acknowledgement of insolvency and the hack claims come after months of customer withdrawal delays, comparisons to the now-defunct Japanese bitcoin....
A Florida court has frozen the assets of the digital currency exchange Cryptsy and placed it under receivership, months after it collapsed amid claims that it had been the target of a hack. The court-appointed monitor, James Sallah, was selected after a request by the plaintiffs in a class action law suit filed against the exchange in January. That lawsuit stemmed from problems with customer fund withdrawals that had worsened for months before withdrawals and trading activities were suspended entirely. Prior to its shutdown, Cryptsy said that it had outstanding customer liabilities of....