I didn't use cryptsy, but what sense does it make to drop trading fees to 0% when you're trying to make good on insolvency? I would have thought that collecting trading fees would be your best hope of making up the shortfall.
0% trading fee, people deposit more coins to trade for free, charge instead % for withdrawal so people leave their coins on your platform.....sounds like the perfect plan if you're coming undone with not having the coins on your books.
OK, thanks, that makes sense.
Charge a fee on withdrawals so you still have a way of making up the shortfall while simultaneously encouraging people to leave their coins with you so a) your insolvency is less likely to become apparent and b) if it all goes wrong you have more coins to exit scam with.
I remember after MtGox went belly up there was a lot of noise made about requiring exchanges to do regular proof-of-solvency audits. Whatever happened to this? Is it still standard practice for exchanges to just ask their clients to trust that they are solvent?