Re: GROUP ACTION: CRYPTSY EXHANGE NEGLIGENCE

Quote from: TECSHARE on January 28, 2014, 08:03:23 AM

Seeing as Cryptsy is clearly hurting many coin communities here by frivolously adding coins then not supporting them correctly, refusing to suspend new registrations when they are overwhelmed with registrations, allowing coins to go missing from customer accounts, blatantly lying to customers, and trapping people in their exchange for weeks or longer, I would like to help organize group action against Cryptsy to put pressure on them to resolve these issues in manner that doesn't result in the user base suffering while they profit. I have personally had coins trapped there for a half of a month as of today, and I know there are many others suffering from Cryptsy's negligence. They are only doing this because NO ONE IS PUSHING BACK. Let Cryptsy know playing with your money isn't a game they want to play.

Possible plans:
-Group protests at their HQ
-Social media campaigns exposing their negligence (like done with BFL)
-Class action lawsuits

What do you think is the best way to do this?

LETS PUSH BACK

From the Josh Garza Scam Thread:

The noose begins to tighten.

http://coinfire.io/2015/10/04/federal-investigations-of-cryptsy-underway/

Coin Fire is now able to report that multiple federal investigations are underway regarding Crypsty.

The online exchange is under several investigations with multiple agencies including the Securities and Exchange Commission, the Internal Revenue Service, and the Criminal Investigation Division of the Internal Revenue Service, among others.

Documents from various investigations obtained by Coin Fire show a litany of purported wrongdoing by the company and several team members. The large number of allegations levied against the company varies from agency to agency in more than 300 pages of documents. In some instances, the investigation alleges that the company failed to obtain appropriate licenses. In one particular instance, a connection is made between a Cryptsy team member and GAW Miners fraudulent operations. Other government agencies report a failure to report gains appropriately, market manipulation, the sale of unlicensed securities, money laundering, and more.

The document cache obtained by Coin Fire contains materials ranging from the Securities and Exchange Commission to the Department of Homeland Security. The earliest records in the cache against Crypsty contain minor investigations of wrong-doing and are dated prior to the larger investigation of Mr. Homero Joshua Garza and Mr. Carlos Garza; however, the information discovered during the GAW Miners investigation caused lead investigators from multiple organizations to begin scrutinizing Crypsty and its parent company, Project Investors, more closely. The investigation against Cryptsy intensified after a PayCoin controller was exchanged to the company and the two investigations began to run concurrently.

In one document, FinCen began to examine allegedly illegal transactions where money was being moved to accounts connected to suspected terrorists, but the investigation had since stalled. This document was set aside and ignored for several months until recent information indicated potential transactions with suspected terrorists. Later documents referenced this earlier FinCen document, with the most recent alleging that both Project Investors and Cryptsy were aware of an account on their platform being used by an individual with ties to banking watch lists and restrictions.

The documents also explore other allegations. In one report, an organization alleges that the company utilized automated trading software on a platform that directly benefitted Crypsty staff members. The report also alleges that a key Cryptsy staff member performed fraudulent transactions related to the movement of PayCoin by Mr. Garza.

Another document shows one organization beginning a probe of PayCoins blockchain history. This document alleges that Cryptsy was being used by Mr. Garza to disguise money movement for both him and his associates. Furthermore, the report claims that the company was aware of this movement and not merely complicit; this allegation is echoed by material within the document indicating that (1) staff member engaged in these fraudulent transactions and transfers, and directly engaged in market manipulation.

A wide variety of federal agencies have taken an interest in cryptocurrency companies over the last year, with many preparing for administrative actions and even criminal charges in early 2016. These agencies have been seen cooperating on several levels. One agent with the Securities and Exchange Commission told Coin Fire that they were,

"Looking at the worst offenders in cryptocurrency and would be closing in further on our unofficial top ten list of which Cryptsy and Project Investors will find itself to be in the Top 5."