Cryptsy CEO: Bitcoin Theft Kept Hidden to Avoid ‘Panic’


The future of digital currency exchange Cryptsy remains in question following news last week that withdrawals and trading would be put on hold indefinitely and claims from the company it was hacked in 2014.

Cryptsy first announced it was insolvent on 15th January after months of withdrawal problems, a situation it, until recently, blamed on technical issues. The insolvency disclosure followed on the heels of a class action lawsuit filed in federal court by Florida law firms on behalf of customers.

Since then, the exchange has opened up some of its wallets, allowing customer withdrawals in alternative cryptocurrencies. Market trading and deposits remain offline at press time, according to an announcement on the site’s main page.

Yet, last week’s disclosure raises questions as to why exchange customers weren’t told about the true nature of the problems at the exchange.

A Freedom of Information Act (FOIA) request submitted to the Federal Trade Commission by CoinDesk points to reported withdrawal problems dating back to early 2014. Some critics have suggested that exchange itself may be behind the thefts.

In new comments, CEO Paul Vernon reiterated the exchange’s earlier statement that it kept the information hidden to prevent

Read more ... source: TheBitcoinNews