Cryptsy: Trades & Withdrawals Suspended Indefinitely, Claims Bitcoin Theft

Cryptsy: Trades & Withdrawals Suspended Indefinitely, Claims Bitcoin Theft

Following months of uncertainty customer withdrawal difficulties, Cryptsy has revealed that it can no longer go on, in its current state.

The digital currency exchange claimed in a blog post today that it was the target of a bitcoin wallet theft on July 29, 2014. The ‘critical event’, as Cryptsy deemed it, has the exchange alleging that 13,000 BTC, approximately, was stolen. The exchange also claimed a theft of 300,000 LTC, approximately.

Cryptsy alleges the developer of Lucky7Coin behind the theft, claiming the developer placed an IRC backdoor with Trojan or command and control capabilities.

The exchange added that it was still earning more than it was spending at the time of the hack, which meant that a conscious decision was made to dig in to the company’s profits and reserves to fill the affected wallets. This decision, Cryptsy adds, was to “avert complete closure of the website at the time.”

An excerpt from Cryptsy’s blog added:

This worked fine for a while, as profits decreased due to low volume and low Bitcoin prices, we

Read more ... source: TheBitcoinNews

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