Cryptsy Founder Paul Vernon May Have Absconded to China
The founder and CEO of now defunct Cryptsy appears to have moved out of the United States to China. There have been few interesting developments in the class action lawsuit filed against Cryptsy by its customers. Paul Vernon, the founder of the now-defunct Bitcoin exchange, is reported to have gone missing amidst an ongoing enquiry. There are indications that he may have moved to China to escape the possible legal repercussions for allegedly mismanaging customers funds, and committing fraud. Bitcoin and scams sometimes go well together. We are well aware that it is not the digital currency....
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According to the Miami New Times, Cryptsy founder Paul Vernon, otherwise known as “Big Vern,” has spoken to the publication while in hiding. The New Times ran a report on Cryptsy last week, and according to Vernon’s wife he dipped off to China with a girlfriend. Apparently, after this article was published, Vernon reached out to the news outlet willing....
Florida-based exchange Cryptsy trades in over 130 cryptocurrencies, and cryptocurrencies alone. There are no government-denominated currency trading pairs on the exchange. At least, not yet. Cryptsy regularly exceeds 2,300 BTC in volume on a 24-hour basis. That makes it the largest crypto-to-crypto exchange, at which people routinely trade altcoins for bitcoin, and vice versa. So, where did the idea of a cryptocurrency-only altcoin exchange come from? How does Cryptsy decide to add new coins? And will the company take compliance seriously when it adds fiat into its enormous mix of digital....
Update January 12, 2016: Paul Vernon tweeted that a new phishing scam is targeting Cryptsy customers. Earlier this morning, we reported on the mysterious disappearance of the Cryptsy team from the building housing their headquarters. An anonymous source visited the building to see Paul Vernon, the cryptocurrency exchange’s Founder, and discovered that the building was empty. Upon contacting the building manager, our source learned that Cryptsy had vacated the building several weeks prior. This unannounced move comes in the middle of controversy surrounding Cryptsy, as many customers have....
Moreover, Cryptcracker has agreed to return the funds in exchange for a 13% bounty, which will add up to roughly 2,000 Bitcoin. That is still a very significant amount of “clean” money to deal with after such a major breach, albeit it pales in comparison to the funds controlled by this person right now. What is particularly worrying is how this announcement makes no mention about the addresses where this fund is being kept. Cryptsy used to be one of the more prominent Bitcoin and altcoin exchanges in the realm of digital currency, even though there have always been minor issues with the....
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....