Led 19

Cryptsy Announces 1000 BTC Reward for Stolen Coins

Source: bitcoin

Cryptsy scam

Cryptsy is quickly capturing headlines and even being referred to as “the next Mt. Gox.” Things do not seem quite as simple as Cryptsy running away, as the unannounced vacating of their headquarters may have suggested. A new blog post from Cryptsy posted January 14th, claims that the loss of funds did not result from a recent malicious or DDOS attack, nor malicious actions on the behalf of any of the Cryptsy staff, as well as a bounty of 1000 BTC “for information which leads to the recovery of the stolen coins.” Instead, the beginning of these problems happened a year and a half ago, and Cryptsy is no longer able to keep
themselves afloat.

Also read: Bitcoinist Weekly News Re-Hash: Mike Hearn Has Fled the Building

Claims of Theft

The posts details that after some investigation, the culprit seemed to be the developer of Lucky7Coin, which “had placed an IRC backdoor into the code of wallet.” Acting as a Trojan, it was suspected to lay dormant for months before it gained the necessary information to perform the attack.

According to the blog post, “about a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies”. In total, around 13,000 BTC and 300,000 LTC was taken, which alone is worth around $5.9 million USD at current market prices. Not to mention the “couple other cryptocurrencies”, which could lead to the total amount stolen being closer to $6 million.

Cryptsy, it seems, decided to keep things low-key. They planned to resolve the deficit using profits made from the exchange, and the reserve they still had of the cryptocurrencies. While this plan would have solved things over time and done it quietly to boot, a combination of low volume and low Bitcoin prices led to low profits that made this plan of resolution difficult to abide by.

“Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting.”

Cryptsy points to Coinfire’s article, which they claim contains many false accusations, being the final straw, leading to depleted reserves as everyone was trying to withdraw their money.

In Cryptsy’s current state, the most likely option is to file bankruptcy, but Cryptsy is not ruling out reacquiring the stolen funds to process withdrawals, nor someone else purchasing the exchange and making good on the withdrawal requests. Bitcoinist will keep you updated on any developments regarding the Cryptsy exchange.

Is Cryptsy going to end up like Mt. Gox? Have you lost money from the exchange? Let us know in the comments below!


Photos Courtesy of Cryptsy and PixaBay

The post Cryptsy Announces 1000 BTC Reward for Stolen Coins appeared first on Bitcoinist.net.

Cryptsy Announces 1000 BTC Reward for Stolen Coins

Led 09

Cryptsy Has Moved Out of Their Building Unannounced, Nowhere to be Found

Source: bitcoin

Cryptsy scam

Bitcoinist has received exclusive news regarding Cryptsy that is related to the issues surrounding the cryptocurrency exchange as of late. According to a confirmed source, who wishes to remain anonymous, the company has moved out of the building that housed its headquarters. This move was unannounced, and was discovered accidentally when our source went to the building to visit the team. 

Also read: 2016 and Bitcoin: What Changes Will Come?

Cryptsy’s Mysterious Disappearance

This news comes in the midst of Cryptsy customers experiencing difficulty withdrawing funds in recent days, with customers taking to social media to express their frustration. Additionally, around three days ago, the exchange halted its trading engine, and activity did not resume until the next day. These troubles prompted coverage from the Bitcoin media, and speculation from the community. Several threads popped up on the bitcoin subreddit concerning the withdrawal difficulties going on at Cryptsy, with people accusing the exchange of stealing their money. One post in particular went as far as to suggest a “collaborative lawsuit” against Cryptsy in hopes of retrieving lost funds:

Now, if Cryptsy is really going down, I think we’d better take action before it is too late. . .I have lost money to GAW miners and Hashprofit, so I hope we can get together and take a positive action towards Cryptsy, before it is too late.

Now, our anonymous source has informed us that Cryptsy has moved out of its building, without leaving any clue of where they might be. Our source went to the building yesterday to visit Vern, the Founder of Cryptsy. Upon arriving, he found the building to be empty, with no Cryptsy team members in sight. Our source contacted the building manager about the disappearance, and he informed our source that the company moved out a couple weeks ago. The building manager did not have any further information regarding Cryptsy’s whereabouts after the move.

Presently, there is no evidence to suggest that this unannounced move is connected to the withdrawal difficulties experienced by Cryptsy customers in recent days. Customers have been reporting difficulties withdrawing from the exchange for at least 25 days, but the major speculation on the state of Cryptsy did not begin until the company halted trading three days ago.

The following pictures show the building that used to house the Cryptsy headquarters, which is now empty. These pictures were sent to us by our source.

Bitcoinist will continue to investigate the situation and will provide updates as they become available.

What do you think about Cryptsy’s unannounced move? Let us know in the comments below!

The post Cryptsy Has Moved Out of Their Building Unannounced, Nowhere to be Found appeared first on Bitcoinist.net.

Cryptsy Has Moved Out of Their Building Unannounced, Nowhere to be Found