Cryptsy: Hacker Theft Stole Millions; Bankruptcy Now an Option
In a blog post earlier this week, the crypto currency or Bitcoin exchange Cryptsy reported that hackers executed a
heist of more than $9 million worth of digital currency from the exchange last July. The thieves stole roughly 13,000 Bitcoin and 300,000 LiteCoin, which Cryptsy asserts has left the exchange in a state of insolvency. This news
comes on the heels of two separate suspensions of trading over the last two weeks.
According to the posted explanation, Cryptsy had avoided going public with this news due to its belief that the
exchange was profitable enough to simply cover customers losses - and thus avoid a public panic over the situation. In addition, the exchange or bitcoins price alleges that its efforts to make law enforcement aware of the situation
proved unfruitful. As trade volume on the BTC exchange declined in recent months, Cryptsy came to the realization that those losses simply could not be covered.
When it Rains, It Pours: Cryptsy Facing Class Action Suit
This week in Florida, a class action lawsuit was filed against embattled digital currency exchange Cryptsy. The
action was filed by a Cryptsy customer from Virginia, Jinyao Liu, and asserts that the exchange has violated
Florida’s Deceptive and Unfair Trade Practices Act, unjustly enriched itself, and demonstrated negligence. The
exchange’s failure to properly communicate with its customers is also at issue in the case.
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