Court Documents Show Cryptsy CEO Predicted Exchange Would Fail
Weeks before disclosing that the digital currency exchange Cryptsy was insolvent, CEO Paul Vernon told a Florida divorce court in a financial affidavit that he expected the operator of the exchange to fail. The affidavit was filed on 22nd December – less a month before Cryptsy would go on to claim that it had been the target of a debilitating hack in 2014 that left it insolvent and with millions in customer liabilities. At the time, Vernon said that the exchange, which largely focused on alternative cryptocurrencies, had been able to stay afloat thanks to fee income, but that profits had....
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Cryptsy CEO Paul Vernon may have stolen as much as $3.3m from the now-defunct digital currency exchange and destroyed evidence of his illicit actions. That's according to new court documents from the ongoing class action lawsuit filed against the troubled industry exec. A report from court-appointed receiver James Sallah, published on 2nd August, details efforts to take control of assets tied to Cryptsy, most notably the digital currency holdings sought by the exchange's former customers. The updates are the latest to follow Cryptsy's collapse in January, when after months of growing....
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....
A Florida law firm is pressing charges against digital currency exchange Cryptsy, accusing the company of fraudulent business practices and negligent security measures. In court documents filed in the 15th Judicial Court of Florida yesterday, Silver Law Firm stated that Cryptsy violated the state's Deceptive and Unfair Trade Practices Act by failing to provide critical information regarding security risks and customer fund management protocols. Plaintiff and Cryptsy customer Skye Bonow, according to the filing, lost 140 BTC in January due to a security breach stemming from the undisclosed....
Months before the digital currency exchange Cryptsy declared its insolvency and claimed it was the target of a debilitating hack and theft, CEO Paul Vernon's estranged wife claimed in a court filing that she was afraid her husband would flee the country with funds taken from businesses he owns, including Cryptsy. Court documents obtained by CoinDesk offer new details about an ongoing legal battle between Vernon and his wife, Lorie Ann Nettles, who filed for divorce last fall. The motion for injunctive relief sought a court order freezing the assets of Cryptsy and other entities owned by....
Holders of Unobtanium (UNO) caught a break when the Bittrex exchange noticed the assets of the largest UNO wallet strangely appeared on Bittrex and impounded it. The wallet had been somehow transferred from Cryptsy, an exchange that has been discontinued and its assets placed under court receivership. A Twitter post shows the UNO assets that appeared on the BIttrex exchange.While Cryptsy’s assets were placed under the control of a court receiver last year, the transfer of 15,000 UNO to Bittrex reveals that someone has access to Cryptsy assets and attempted to cash them. Bittrex....