Cryptsy CEO: Bitcoin Theft Kept Hidden to Avoid 'Panic'
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....
Related News
One month after a Florida court first appointed a receiver in charge of troubled digital currency exchange Cryptsy, the representative has filed a report detailing efforts to retain information about the whereabouts of Cryptsy assets, as well as CEO Paul Vernon. Entered by receiver James Sallah, the filing comes months after users first began voicing concerns about their inability to withdraw funds from the exchange or receive clarity from its management on the status of such services. Back in January, two Florida law firms filed suit against Project Investors, the company that oversaw the....
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....
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 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....
The plaintiffs in a class action lawsuit filed after the collapse of Florida digital currency exchange Cryptsy are moving to settle with one of its defendants. Lorie Ann Nettles, the former spouse of Cryptsy CEO Paul Vernon, was named as a co-defendant in the class action, which was initiated in January. The lawsuit was filed after the now-defunct exchange claimed that it had been hacked two years prior, leaving it with millions of dollars in customer liabilities. Cryptsy’s collapse followed months of growing problems with customer withdrawals. Vernon later claimed that the exchange's....