Cryptsy is a leading cryptocurrency news source that covers a wide range of topics and insights. Whether you’re new to Bitcoin or an experienced trader, this site has something for everyone.
The founder of a Delray Beach-based digital currency exchange was accused of hiding millions of dollars in his customers’ wallets and absconding to China with the money. Read More.
About Cryptsy
Cryptsy is a Florida-based exchange that trades in over 130 Cryptocurrencies. It started out as a Bitcoin exchange but has now expanded to support many lesser known currencies. It also offers merchant services to enable them to accept crypto-currency payments.
It has been a hit with miners who need to convert their coins into Bitcoin and fiat currency. Recently the company has started to offer fiat trading for certain limited coins. The site has a user friendly design and provides a wealth of information for cryptocurrency enthusiasts.
The founder of the site, Paul Vernon, is facing a class action lawsuit and a series of complaints with the state attorney. He has been accused of stealing 13,000 BTC and 300,000 LTC, or more than $5 million at current prices. He is charged with tax evasion, wire fraud, money laundering, computer fraud, and tampering with records and documents. He is believed to be hiding in China.
Cryptocurrency News
Cryptsy’s collapse is a reminder that unregulated Bitcoin exchanges are not immune to fraud and other crimes. It may also discourage more people from investing in cryptocurrency.
On January 15, 2016, Cryptsy announced that it had suffered a loss of 13,000 Bitcoin and 300,000 Litecoin in a cyber attack, and that millions in digital currency assets were stolen. Founder Paul Vernon, better known as Big Vern, promised to make a blog post explaining the situation and apologized to customers for concealing the problem all this time.
Now, a class action lawsuit filed by Florida attorney David Silver and Wites & Kapetan accuses Vernon and Cryptsy of fraud, misappropriation, money laundering and other charges. The suit claims that the defendants used Cryptsy funds to purchase luxury real estate, including a waterfront villa in West Palm Beach, and to fund their own businesses. The lawsuit adds that customers were denied access to their accounts over the course of several months.
Trading
Cryptsy is a crypto-to-crypto exchange that supports over 80 different cryptocurrencies. The exchange offers a variety of deposit and withdrawal options. These vary by platform and payment method. The platform also offers a number of tools and features to help traders analyze and make informed trading decisions.
The platform is designed to be user-friendly and provides insights into upcoming technologies. It is possible to purchase cryptocurrencies using the Cryptsy platform through a credit card. However, the exchange has strict anti-money laundering guidelines and requires all users to undergo an identity verification process.
In addition to the settlements for Cryptsy, Silver Miller and Wites & Rogers were designated class counsel in a cryptocurrency lawsuit against Coinbase. The case was a result of information suggesting that Coinbase knew about Paul Vernon and Cryptsy’s theft of customer cryptocurrency. In addition, the firm was able to establish that Coinbase “aided and abetted the theft and fraud by converting and liquidating the stolen cryptocurrencies into USD through its accounts.” This was a hard-fought case.
Security
Whether you are investing in Bitcoin or simply trading on a crypto exchange, you should take the necessary steps to protect yourself from hackers. It’s important to have a robust cybersecurity program and ensure that the third parties you work with are also taking proper security measures.
One way to do this is by enabling two-factor authentication on your account. This is a simple step that can help limit the damage if your cryptocurrency exchange or wallet is hacked.
Recently, a bitcoin exchange named Bitfinex was hacked, leading to a huge drop in the price of the virtual currency. It eventually put all trading and deposits on hold until it could resolve the matter. The Florida law firms Wites & Rogers and Silver Miller are litigating the second known class action against a crypto exchange.