Cryptsy Receivership Status Update

[MicroGuy]

As many of you know, the last tweet from Big Vern's account, on April 12, indicated that the exchange had been turned over to the court-appointed receivership.



https://twitter.com/cryptsy/status/719773151098327040

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Since the time of that tweet, I have been monitoring some of the known Cryptsy cold wallet addresses. This is easy to do by matching rich addresses to dates and deposit behaviors. Two days ago, on May 19, the coins started moving.

The person in charge of the coins appears to be a competent crypto professional. I assume the receivership hired this individual.

In the case of Goldcoin (GLD), the receivership appears to have combined the hot wallets and cold wallets into a single address. Using the ownership claim feature of the block explorer, this individual even took the time to claim the address. He labeled it, "Cryptsy Receiver Wallet."



http://gld.cryptocoinexplorer.com/rich

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Based on this behavior, I would think this is a good sign that the coins of former Cryptsy customers are in good hands. Hopefully, these users will have their coins returned in the near future.

[MicroGuy]

This should help to remove much of the uncertainty from the market by easing the fears of investors. 

The coins stored in that address belong to hundreds of individual investors and adopters. It is important that we get the word out to these users that their coins will be returned. The main reason it's been so quiet in the community is because many adopters had thought their coins were lost forever.

Now that progress is being made on returning these coins to our people, their motivation and incentive to contribute to Goldcoin's success can also return. I will do everything in my power to make sure these coins are returned to their rightful owners. United we will stand strong.

Once I have more information, I will provide it promptly in this thread.

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[MicroGuy]

Lot's of coins being moved around. This looks like good news for people with coins on Cryptsy. 

https://bitcointalk.org/index.php?topic=527500.msg14975740#msg14975740

[hxiilmis]

Sorry to burst your bubble but it is highly unlikely that the receiver will return any GLD to anyone.  All of cryptsy's assets will be combined and sold for USD.  It is unlikely that the receiver will receive fair market value in the bulk liquidation of these assets. The USD will then be distributed proportionally to all those holding claims against cryptsy...but not until AFTER the receiver takes a fee. The receiver charges a fee, similar to the rate of a common attorney:  several hundreds of  dollars per hour.  Sorting through cryptsy files. moving digital assets, contacting creditors, etc will be hundreds of billable hours.

[MicroGuy]

Sorry to burst your bubble but it is highly unlikely that the receiver will return any GLD to anyone.  All of cryptsy's assets will be combined and sold for USD.  It is unlikely that the receiver will receive fair market value in the bulk liquidation of these assets. The USD will then be distributed proportionally to all those holding claims against cryptsy...but not until AFTER the receiver takes a fee. The receiver charges a fee, similar to the rate of a common attorney:  several hundreds of  dollars per hour.  Sorting through cryptsy files. moving digital assets, contacting creditors, etc will be hundreds of billable hours.

This is incorrect. The frozen altcoins are not the property of Cryptsy and are not subject to liquidation.

The receivership is in the process now of doing a full accounting to determine the coin owners so they can be safely returned. The court never authorized the property of others to be stolen, only that the receiver should act as custodian.

https://www.scribd.com/doc/306964085/2016-4-4-De-33-Order-Appointing-James-Sallah-as-Receiver-Corporate-Monitor-for-Crytpsy

All 'exchange property' including computer hardware, bank accounts, intellectual rights, and real estate, etc., is however subject to forfeiture. I will be providing additional details as soon as possible.

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[MicroGuy]

I spoke at length with the receivership attorney yesterday and a forensic investigator. They had hoped to reconstruct the Cryptsy website but it appears that Vern deleted the databases and wiped the disks the day of his departure.

The problem at this point is determining which coins belong to which users. The hired experts are attempting to recover the databases, but at this point it looks doubtful.

We will be asking the receivership to recommend to the courts that the coins be returned to the various communities whereby a system can be worked out to fairly redistribute the coins. In any case, I was told the legal process could possibly drag out for years.

There will be more details released during our weekly Team meeting this Sunday at 1:00pm. You can join in here:  https://discord.gg/0s44ZF1V4kAxQGwT

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[demmy12345]

I spoke at length with the receivership attorney yesterday and a forensic investigator. They had hoped to reconstruct the Cryptsy website but it appears that Vern deleted the databases and wiped the disks the day of his departure.

The problem at this point is determining which coins belong to which users. The hired experts are attempting to recover the databases, but at this point it looks doubtful.

We will be asking the receivership to recommend to the courts that the coins be returned to the various communities whereby a system can be worked out to fairly redistribute the coins. In any case, I was told the legal process could possibly drag out for years.

There will be more details released during our weekly Team meeting this Sunday at 1:00pm. You can join in here:  https://discord.gg/0s44ZF1V4kAxQGwT

~~

I had a mixture of various coins in Cryptsy. The estimated value would be approximately $1500. Can anyone offer any advice as to what the best course of action is?

[MicroGuy]

I had a mixture of various coins in Cryptsy. The estimated value would be approximately $1500. Can anyone offer any advice as to what the best course of action is?

The forensic team is still trying to recover the deleted user database showing which accounts held which coins. If this process is unsuccessful, then we will recommend to the courts that the coins be returned to the various communities. The main problem at that point will be how to redistribute the coins.

There is also the possibility that Bigvern will grow a conscience and provide a backup so the exchange website can be fully restored. Then the exchange could be put into "withdrawal only mode" and users would be able to login and retrieve their coins.

~~

[demmy12345]

I had a mixture of various coins in Cryptsy. The estimated value would be approximately $1500. Can anyone offer any advice as to what the best course of action is?

The forensic team is still trying to recover the deleted user database showing which accounts held which coins. If this process is unsuccessful, then we will recommend to the courts that the coins be returned to the various communities. The main problem at that point will be how to redistribute the coins.

There is also the possibility that Bigvern will grow a conscience and provide a backup so the exchange website can be fully restored. Then the exchange could be put into "withdrawal only mode" and users would be able to login and retrieve their coins.

~~

OK, Thanks for the advice.

[demmy12345]

I had a mixture of various coins in Cryptsy. The estimated value would be approximately $1500. Can anyone offer any advice as to what the best course of action is?

The forensic team is still trying to recover the deleted user database showing which accounts held which coins. If this process is unsuccessful, then we will recommend to the courts that the coins be returned to the various communities. The main problem at that point will be how to redistribute the coins.

There is also the possibility that Bigvern will grow a conscience and provide a backup so the exchange website can be fully restored. Then the exchange could be put into "withdrawal only mode" and users would be able to login and retrieve their coins.

~~

Do you think there is a realistic chance that the victims will get their coins returned? Mine were a mixture of bitcoin, litecoin, gold, quark and infinite.

[MicroGuy]

Do you think there is a realistic chance that the victims will get their coins returned? Mine were a mixture of bitcoin, litecoin, gold, quark and infinite.

Yes. I think there's a realistic chance. We should know more about the potential and process over the coming weeks.

~~

The story has really started to pick up steam on BCT: https://bitcointalk.org/index.php?topic=1173703.msg15085366#msg15085366

UNU discussion from today: https://bitcointalk.org/index.php?topic=527500.msg15086401#msg15086401

[Stouse49]

Unfortunately, I didn't make screen shots that showed my account balances before they went offline.  I had around GLD (13,000), DOGE (18,000) and BTC (1.0) and perhaps 10 of BitcoinDark.  Of course I was trying many things to try to get my coins out.  Since BTC wasn't working and GLD got stuck on its way out (the transaction wasn't sent - Cryptsy had a transaction hash though), I tried to buy other currencies in order to transfer the coins out.  Dogecoin and BitcoinDark failed to get sent out as well.

I figured that all was lost in January, so I made no effort to prove that I owned anything.  It will be good if some or all the GLD can be recovered.

[dustint]

luckily i made screenshots since i had 10 btc worth of coins in cryptsy hopefully my pics help me get some coins back

[demmy12345]

Do you think there is a realistic chance that the victims will get their coins returned? Mine were a mixture of bitcoin, litecoin, gold, quark and infinite.

Yes. I think there's a realistic chance. We should know more about the potential and process over the coming weeks.

~~

The story has really started to pick up steam on BCT: https://bitcointalk.org/index.php?topic=1173703.msg15085366#msg15085366

UNU discussion from today: https://bitcointalk.org/index.php?topic=527500.msg15086401#msg15086401

Do you think it is helpful to keep the log in times that Crptsy provided each time a trade was conducted. I think I can prove my litecoins which amount to about 400 us dollars. Do you have any idea how the currencies will be returned? I also have about 1 bitcoin and some quark and infinitecoin,

[Aurophilicity]

Cryptsy coins won't be returned to their owners. Big Vern destroyed the database. Coins will be sold through an exchange.
However, this doesn't apply to GLD which doesn't have a high liquidation value.

http://cryptsyreceivership.com

Latest document from 16 Sep 2016:

http://cryptsyreceivership.com/v1/wp-content/uploads/2016/06/Receivers-Motion-for-Authorizing-to-Liquidate-Certain-Cryptocurrencies-Secured-by-the-Receiver.pdf