Court Takes Control of Digital Currency Exchange Cryptsy
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....
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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 federal court has appointed a receiver for Cryptsy, the cryptocurrency exchange that claims to have lost $5 million in funds to theft. In response to the lawsuit by Cryptsy clients seeking to recover their funds, the U.S. District Court Southern District of Florida appointed James D. Sallah, Esq. as the receiver and given him control of Cryptsy’s assets. The court has taken possession of Cryptsy’s assets, “of whatever kind and wherever situated.” All powers of the company’s agents, employees, officers and directors are suspended. The court assigned the receiver in response to a suit 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....
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....
Two Florida law firms have filed a class action lawsuit in US district court against digital currency exchange Cryptsy and its CEO, Paul Vernon. Filed in the US District Court for the Southern District of Florida on 13th January, the case alleges negligence, unjust enrichment, conversion and violation of Florida’s Deceptive and Unfair Trade Practices Act. The lawsuit was filed by Jinyao Liu, a Cryptsy customer based in Virginia. Liu, in addition to other members of the class, is being represented by Wites & Kapetan, PA and the Silver Law Group, the latter of which filed suit in state court....