Cryptsy Considers Spreading its 10,000 BTC Loss to Users
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....
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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....
Florida Law Firm, Silver Law, has filed lawsuits against two Bitcoin companies on behalf of users who claim damages due to either company negligence or intentional intent malice. The Cryptsy lawsuit is the more interesting of the two, as Bitcoin Savings & Trust's Ponzi scheme was revealed so long ago even the SEC has officially dubbed it as such. Silver Law's press release unfortunately lumps the two companies together, even while the alleged actions of the two are far different. Silver Law, on behalf of its client, Skye Bonow, accuses Cryptsy of exaggerating its security protocols and....
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....
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....
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....