They've gone full Gox.

Cryptsy has now been seized by the courts with all assets frozen after being placed under receivership.

A receivership is basically when a court takes away everything a business owns and hands it over to another person who keeps their good eye on it while the court stuff happens. 

More properly explained as: 

"the process of appointment by a court of a receiver to take custody of the property, business, rents and profits of a party to a lawsuit pending a final decision on disbursement or an agreement that a receiver control the financial receipts of a person who is deeply in debt (insolvent) for the benefit of creditors."

As we've been reporting for several days, the site has been down for "maintenance" with nothing but a webpage stating this claim instead of the normal yellow box at the top of the site where these things are normally mentioned. We suspected the worst and well...we hate being right.

The court order was handed down after the attorneys handing the class action law suit filed against the exchange earlier this year requested a court appointed monitor who apparently went in and pulled the plug.

The order grants the receiver, Sallah, admin god control over the entire lot which includes:

“all cryptocurrencies, monies, funds, property, and other assets” 

It also prohibits anyone to sell or transfer Cryptsy assets anywhere meaning anyone with coins stuck on the exchange might at well pack a lunch and get ready for a long nap because you're not going to see these coins any time soon.

It states the defendants as:

PROJECT INVESTORS, INC. d/b/a CRYPTSY, a Florida corporation,
PAUL VERNON, individually, and
LORIE ANN NETTLES, individually,

The second of those on that list being the so called leader of this sinking ship who told everyone earlier this year that his divorce had nothing to do with the problems at Cryptsy right before court documents were discovered indicating all the problems he was having as a direct result of his divorce.

Now we have a receivership upon this disaster under the aforementioned court order as a result of a move that the attorney's made on behalf of the wife for the divorce that has pretty much botched up the entire operation during its time of not "affecting" anything. 

But again ... Paul Vernon claimed that divorce was not an issue. If that's true then I'd hate to see if the divorce really did cause problems or what in that pea brain of his would be considered causing trouble..

Lies and More Lies

Let's face it, even if the divorce hadn't had a direct effect on this entire situation it still would have had a direct effect on this situation. That's the way divorce works. Its a legal tool to make all parties lives involved a living hell until its over with and each is left with a terrible aftertaste that never goes away. If it were a pleasant process marriage counselors would be out of business. So trying to lie about what it actually did is lying anyway even if Vernon believe the bullshit coming out of his mouth.

Now the question is what on earth does everyone else with assets locked up in this receivership do about this? 

The short answer is get an attorney and hurry up and wait. Just like everyone is still waiting on the outcome of the Mt Gox bankruptcy claims.

At least this time allot of folks were able to jump ship before it sank.

Story by dinbits
Banner image by staff

The opinions expressed by authors of articles linked, referenced, or published on do not necessarily express, nor are endorsed by, the opinions the of or its affiliates.

Post a Comment

Powered by Blogger.