The Cryptsy Crumble: CEO Makes Bizzare Claim About Recovering Stolen Bitcoin | dinbits


Just when you think the story cannot get any more bizarre. Just when you think the CEO, Paul Vernon (aka Big Vern) could not do anything more stupid. Just when you thought the facts and numbers didn't really add up and there may be something amiss at the Cryptsy camp.

This happens.

Vernon supposedly worked out a deal with an unknown entity, Cryptohacker, who claimed the ability to recover the stolen coins for Cryptsy with their super-powers of stolen bitcoin retrieval. Which means this Cryptohacker either stole them, was part of the heist, or more likely doesn't really exist at all.

Suspicious Activity 

We have a much more comprehensive timeline in an earlier article, but lets review some of the basic facts here. 

  1. This happened well over a year ago way back in July of 2014
  2. There was never any report of this. Nothing. 
  3. This was never reported to law enforcement or FinCEN.
  4. When service trouble, delays on withdraws, and account locks began, this was not mentioned.
  5. Suddenly, months later, a story was posted about a hack to explain everything away.

Now this bizarre document. The suspicious activity is that of Cryptsy who would have you believe that the thieves who pulled off this caper just up and turned a new leaf out of the goodness of their heart, for no good reason, at a significant loss in profit since they already had all of the funds, and at risk of imprisonment and other legal issues.  

These same hacker(s) who:

  1. Got away with this crime well over a year ago
  2. Hasn't been heard from since by anyone,
  3. Who Cryptsy themselves have stated they cannot locate, 
  4. Were not reported to any law enforcement agency or FinCEN, and
  5. Have not been made aware of to anyone, anywhere, at all until a month ago

Is there anyone on earth who believe one word of this document? Anyone at all? Please contact press@dinbits.com or feel free to comment below because we would just love to hear why. 

Here's the kicker, the hacker gets to keep 13%. No questions asked. Nearly three quarters of a million dollars, $672,000 and some change.

The More Likely Story

What makes much more sense and would be along the lines of what we reported earlier this year is that Cryptsy found themselves in a financial bind and dipped into the cookie jar.

In other words they ripped everyone off, or are trying to rip everyone off, by coming up with this scheme and then making up this fictitious hacker to get themselves out of the whole thing Scott free and squeaky clean.

We outlined all of the reasons why the hacker story doesn't make any sense to begin with in this article. To make that long story short, the opportunities to pay back the stolen coins were vast and many to actually reduce their debt had they done it or even tried. The article goes over every single one of them. 

This new document makes the entire thing even less believable, but what it doesn't start to piece together is a possible misappropriation of customer funds held. Essentially what Cryptsy might have done is spent or lost the money in other ways, and now in a last ditch effort to save face has concocted this ridiculous story over the last couple months to scrape by the fact that they messed up.

[This way] instead of looking like an idiot, the masters of the Cryptsy universe would look like hero's that saved its customers funds from the grasp of the evil hackers with their ultra-impressive-super-duper-hacker negotiating skills of no compare. Once this is done everyone will be so happy that the bulk of their "stolen" funds were returned, they will be more than happy to not worry about that piddly little 13.5%.

Just an guess and an opinion. Its certainly far more believable than what Cryptsy is shoveling. However, it's not out of the realm of possibility that the hacker really did have a change of heart. It does happen. Maybe its true.

At the end of the day somebody somewhere changed their mind, being that either Cryptsy or the hacker(s). Somebody decided to start giving money back to the people of whom it belongs. 

At least at this moment, that is a positive thing. If it takes this fabrication to make that happen, then so be it. At the end of the day all anyone wants is that the funds are returned to the rightful owners.

... then we'll worry about that 13%.






Story by dinbits
Cryptsy logo courtesy Project Investors, Inc.


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