For Some Reason People Are Still Depositing Funds To Cryptsy

Over the past few weeks, it has become apparent that digital currency exchange Cryptsy is facing some serious problems. While the official word is that the site is under DDoS, and hardware upgrades are being implemented to cope with the growing demand, a lot of Bitcoin community members feel this exchange is turning into a new Mt.Gox. After all, users can still deposit funds to Cryptsy, but withdrawing has not been possible for quite some time now.

Also read: Microsoft Enables Carrier Billing For Windows Store – Bitcoin Integration Soon?

Stop Depositing To Cryptsy – It’s For Your Own GoodTheMerkle_Cryptsy Deposit

One thing to keep in mind when getting involved in the world of Bitcoin and digital currency is that any funds spent from one’s wallet are non-refundable. This means that, if one were to send a few Bitcoins to anyone else on the network, there is no way of getting that money back if things go awry.

This scenario is especially true when it comes to using digital currency exchanges, as nearly all of them will act as an intermediary to hold customer funds. Whenever a problem arises with one of these exchanges regarding getting money out again, people should instantly stop depositing more funds into the platform.

Cryptsy, which is the example exchange in this story, also has the responsibility to stop people from depositing funds until they have all of their issues sorted. Unfortunately, that does not seem to be the case, which only leads to more frustration and speculation regarding what is going on with the platform.

 

Trouble started brewing for Cryptsy when a Twitter post mentioned a server failure, pausing all wallets active on the cryptocurrency exchange. This was back on November 22nd, and everything was scheduled to be resumed very shortly. However, that issue never got sorted, and things have only gotten worse from there on out.

Two days later, Cryptsy’s BigVern posted a message saying how the website was offline due to a denial-of-service attack. At that time, the wallet situation hadn’t been resolved yet, and a lot of platform users started getting worried. Getting funds out of Cryptsy’s wallet was – and still is – impossible at that time.

 

Over the past few weeks, things had quieted down on the Cryptsy front, with no updates whatsoever. That was, until December 10, when another Twitter update was posted to “thank everyone for their patience, and the team is working hard”. Not a message anyone is really happy with it, albeit it is an update of some sorts.

What’s Next For Cryptsy?TheMerkle_Cryptsy

The big question is how the situation will evolve over the next few weeks. We can only hope that Cryptsy customers will be able to get their funds out sooner rather than later, but there does not seem to be any indication of that being the case anytime soon. For now, everyone will have to rely on sparse Twitter updates, and hope for the best.

That being said, Cryptsy can rest assured their already shaky reputation has taken a major blow because of these issues. In the Bitcoin world, it is not acceptable to hold customer funds hostage for such an extended period of time, without any proof of what has happened, or being done, to rectify the issue.

Are your funds stuck in one of Cryptsy’s wallets? Let us know in the comments below!

Source: Twitter

Images credit 1,2,3

  • Anon

    I want my 20M EAC back crytpsy I have a ticket in for that reason the reason being I was locked out of my account due to inactivity now i come back after not even 90days and you reopen my account and i find my shit is gone, im cashing out going over to bitstamp f this bot site

    1313.1313 bots

    • reiniere2015

      I had -300000 MINT coins on Cryptsy (lol) I have never seen this before on an exchange.
      Support was not able to fix it. Crypty has serious problems.
      I dont know if people are aware but Mintsy (cloud mining) is sister-website from crypty. I have
      lost 50% of mining-results on this website due to server problems.
      My advice: stay away from crypty. go to bittrex instead.

  • Jason Swift

    Cryptsy seems to be in financial trouble and is now on its way to legal trouble. While I hadn’t logged into my account for over 6 months, I had two assurances. One I was signed up utilizing two factor auth for login and transactions. This meant before I could login to my account I would receive a txt message confirming my pin to be able to login. The same thing before transactions. In addition since I was inactive for over 6 months Crypsty for safety deactivated my account so I could not even log in. The problem occurred when I went through Crypsty support to reactivate my account it took a week. Then when I finally got in all of my funds were gone. Crypsty had a good history of them being sent out of my account on 3 different dates twice in November and once in December. The problem is I never received a pin confirm to login, secondly to make a transaction, third my account was deactivate during the time the transactions were made so the only people who could have made that transaction were internal admins of the system. It wasn’t a Ddos attack against my account.. Not possible, it wasn’t a brute force to gain creds. This was an employee or a hacker with admin access. The fact that the transactions were made over such a long period of time unfortunately leads me to believe this was an internal empoyee. I have read the forums and it seems I am not the only one this has happened too, so while some folks believe hack/Ddos I am an Sr IT Engineer by trade in the realm of security and this is not what hacking or Ddos looks like. This is called Internet fraud and although I hope I am incorrect, I will find out in the upcoming week from my open ticket response with support what kind of resolution the company plans to provide since the internal part of this is so apparent.

    • JeanMouloudDeLaRochelle

      I also reactivated my account after more than a year without activity and all my funds are in.
      No issues.

      • ButtCoiner

        Try pulling out all your funds and see how that works out for you.

  • Vladimir Antonov

    My Dashes are pending one week (

  • Me

    They do not want to withdraw my 0,5btc… They are scammers !!!

  • matthew rodbourne

    I have 10 bitcoin in cryptsy 🙁 I have done weell trading on there but it seams now all my effort may be to waste. Will I get it back?
    I dont know

    • Rootdownfm Allmusicradio

      Please see my post above Matthew – try selling out to alt coins and moving those.

  • Eric Swank

    Cryptsy withdraw only by the buddy system…
    I have pending LTC at Cryptsy since the 6th of December and watch the chat box as “jShock’ a moderator/admin pushes some traders LTC and BTC through, when I ask about my problem I’m told to use a support ticket. Anyway “jShock’ bans me from chat for a week while no one answers back from support. Pending transactions are also cancelled by moderators/admins but only for a select few. Many traders including myself have received TrxID for withdraws that are not even found in the blockchains.

    • Rootdownfm Allmusicradio

      The admins claim to be able to “push” withdrawals through but I believe all they are doing is pushing the transaction up the queue. The transaction itself will still be blocked if it is of any more than few cents value. Two weeks ago I was able to sell 5 btc for DOGE and withdraw those in 1m chunks. I was not able to withdraw any BTC more than 0.02, even though admins claimed to be pushing the transactions for me.

  • CTTE

    Yes, I have 6.42 Btc still on Cryptsy that I was trying desperatly to get off the site for several weeks prior to the shutdown. Now, it appears lost!