Back in October, 2015 when the public was still unaware of Cryptsy’s underlying problems we wrote an article warning users of depositing funds to Cryptsy because they might face potential problems withdrawing those funds. Due to numerous posts on Bitcointalk we decided to bring user’s complaints to light and shed light on potential problems that Cryptsy was facing. We titled the article Do Not Deposit to Cryptsy – gone gull MtGox. Looking back the title couldn’t have been more appropriate as recent news report over 10,000 BTC have gone “missing” from the Cryptsy exchange. The CEO Paul Vernon is conveniently hiding out in China not only from a pending class action lawsuit, but also due to current divorce proceedings with his wife which she filed because she found evidence of infidelity with a Chinese woman.
Our Cryptsy article got lots of attention and made it to the front page of reddit, this goes to show that people did agree with our concerns and wanted other to see the issues that were going on at Cryptsy. However, we were forced to remove the article shortly after due to a Cease and Desist letter we got from [email protected]. Horus aka John MacPherson represented Project Investors Inc which represented Cryptsy. A quick look on BBB shows that the business is not BBB accredited and has a rating of F:
Furthermore, a closer look as to why the business has received such a low rating shows problems with the product / service which comes to no surprise:
The fact that the Cease and Desist letter was sent to us goes to show that Cryptsy’s agenda this whole time was not to admit to the “hack” and take care of the problem, their agenda was to hide the fact that they were having issues for as long as they can and use new customers’ deposits to cover old customer withdrawals.
We complied with Horus’ C&D and removed our article because we wanted to give Cryptsy the benefit of the doubt, we even thought that the posters on bitcointalk were indeed trolls that simply wanted to ruin Cryptsy’s reputation. After we removed the article we asked Horus to allow us to inverview anybody in the Cryptsy executive team in order to get their side of the story, we sent the following questions but never got a response:
What are the withdrawal limits for Bitcoin? Altcoins?
Do user’s have to verify identity before withdrawing large sums of any cryptocurrency from Cryptsy, if so what kind of information is needed and how long does the verification process take.
Why are these users claiming withdrawal problems in this thread: https://bitcointalk.org/index.php?topic=1173703.200 s
such as: https://bitcointalk.org/index.php?topic=1173703.200 , https://bitcointalk.org/index.php?topic=1173703.msg12732047#msg12732047 , https://bitcointalk.org/index.php?topic=1173703.msg12712004#msg12712004Are the users coming onto Crytpsy chat and the bitcointalk forum simply trolls trying to ruin your reputation or disgrunted customers who are having legitimate issues.
Instead of trying to suppress public speech in the Bitcoin community the Cryptsy team should have written this blog post 5 months ago when the supposed “hack” occurred. Now that we know what truly happened to Cryptsy and now that thousands of customers are missing their hard earned bitcoins and now that Cryptsy is facing a class action lawsuit it is finally time for the truth:
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