I might be a couple weeks late on this news but I just found out about this court document that made me jump in excitement. This is huge for anyone who lost bitcoins or altcoins from Cryptsy when Paul Vernon closed the doors. Apparently, the courts have gained access into Crptsy servers containing the Alt-coin wallets and have planned to liquidate them to pay back users.
http://cryptsyreceivership.com/v1/wp-content/uploads/2016/06/Receivers-Motion-for-Authorizing-to-Liquidate-Certain-Cryptocurrencies-Secured-by-the-Receiver.pdf
If your not familiar with Cryptsy, it was a decent sized alt-coin exchange comparable to bittrex that got hacked for roughly 10k bitcoins. The owner Paul Vernon, aka. Big Vern, then chose to hide the fact they were insolvent while trying to cover the losses through trade fees generated through cryptsy. The cover-up was going smooth until a user attempted at withdrawing a large amount of bitcoins and was denied. This user then blew up social media with his claims of cryptsy which caused a cash-dash on the balance of bitcoins resulting in exposed insolvency and a slew of lawsuits. This prompted Big Vern to close the site and dissapear from his Florida mansion and go into hiding; rumored to be in China.
Long story short, Cryptsy was one of the "Trusted" alt exchanges for many years before it collapsed in a short couple months. This fast collapse, along with failed bitcoin and major altcoin withdraws, left many users out of luck when the site closed. Many people, including me, lost significant amounts of bitcoin value from Cryptsy. If you were a victim of Paul Vernon's Cryptsy and his gross negligence of users bitcoins, your best bet for a recovery of a % of assets is to fill out the request mentioned in the Class action lawsuit.
http://cryptsyreceivership.com/v1/wp-content/uploads/2016/06/Oct-26-2106-Class-Action-and-Receivership-Settlement-Agreement.pdf
Although it should be noted that at the time of closure, roughly $12 million was the total user coin values, it has been estimated that a recovery would net less than $4 million, in which 25% of that will most likely go to lawyers. The method of liquidation hasn't been reveiled, but from past experience dealing with courts, the normall method has been an auction of some sorts.
So if everything goes smoothly, users could expect to see close to 1/4 of there Cryptsy account value reimbursed, which is much more than the big zero (0) I was expecting.
I'll Take That!
Thank you for reading. Please feel free to complain about Cryptsy or vent your hate for Big Vern in a comment.
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