So if this is in fact true, and there is a high level of mixing and suspicious activity (where one sends money to crypsty and immediately withdraws and continues a shuffle), that means crypsty has a duty and a responsibility to report that account to Fincen in order to comply with their AML/KYC laws.
The worse part is Paul stated that there were no TX fee's associated with this happening, which tells me (along with the private emails between Vern and Josh) that this was not ignorance but potentially helping launder coins.
This is very serious and I am amazed this has not gained more attention.
Keysersoze has done his best to derail this thread over the last few pages. Probably a Crypsty (or GAW) shill. This needs to be reported ASAP. Cryptsy are colluding in a fraud.
Contact the authorities with this information, tell them that Cryptsy may be in breach of it's responsibilities.