Cryptsy in disarray

Journalist:
April 17, 2014

The popular cryptocurrency trading site Cryptsy.com has been having some noticeable issues these past few hours. Users of Cryptsy have been reporting negative balances, frozen transfers, suspended withdrawals. Speculation is that a recent update is causing the issues. Cryptsy is aware of the issues, but no official statement has been released yet.

Who’s been hit?

I spoke to BlackDogeOfWallSt, one of the developers of BlackCoinPool.com (BCP), which has probably been the hardest-hit community from Cryptsy’s problems. BCP has had to delay their payments due to the problems. BCP’s payouts have to go through an exchange first — one of the exchanges they use most is Cryptsy. Cryptsy isn’t the only exchange they use, but it’s one of their most used. BCP has to go through Cryptsy because BlackCoin can’t be mined, so the pool mines other cryptocurrencies and converts them to BlackCoin through Cryptsy. The BlackCoins are then distributed to the miners in the pool. When Cryptsy froze, BCP had no way to convert their mined cryptocurrencies to BlackCoin, so none of their miners could get paid. BCP is the official BlackCoin mining pool, and a large portion of BlackCoins come from it.

We will continue to update you on this situation as more news is released.

Edit 1: 4/17/14 9:29 AM EST. No official statement has been released by Cryptsy, and it seems as though users are still experiencing problems. This could be Mt. Gox part 2, which would be very, very, bad… Or it could not, only time will tell. The worst thing Cryptsy could do right now is leave the public out of the dark — their customers need to know what’s going on, or they will switch to other exchanges.

Edit 2: 4/17/14 10:04 AM EST. Cryptsy has released an official statement regarding the shutdown of services. They say they chose to keep Cryptsy online while performing modifications to a new ledger system (holds and organizes data such as user balances), which ended up being a mistake. This was the cause of the goofed user balances. They then turned off withdrawals, but the incorrect balances were messing with the trading system, so they shut that down too. Cryptsy says a full system audit has been run to ensure the accuracy of balances, and that everything is back to normal.

If you can’t click on the link above, here’s Cryptsy’s official release on their blog (copy and paste the link into your browser): https://blog.cryptsy.com/post/82992987380/4-16-2014-maintenance-post-mortem

Edit 3: 4/17/14 10:20 AM EST. While Cryptsy claims that everything is back to normal, the first person I spoke to about it online begged to differ. The user (who wishes to remain anonymous) says he’s credited as owing Cryptsy 1,200,000 (1.2 million) dogecoins (about $784), when he only had about 700,000 dogecoins in his account during the problems. I’ll continue to look into this situation.

Edit 4: 4/17/14 10:28 AM EST. The second user I talked to online who has coins in Cryptsy, ‘loq’, is also having issues. Yesterday loq was trading cryptos before he knew of Cryptsy’s troubles. He was making profit so he kept on trading, and once he had a fair amount of Dogecoins he attempted to withdraw them. His withdrawal is still pending, and it’s been 24 hours, while it usually only takes a few seconds to confirm and withdraw. loq has a -0.23 bitcoin balance (yes, negative), and a -160,000 Dogecoin balance.

Edit 5: 4/17/14 2:16 PM EST. The user who wishes to remain anonymous just told me that his balance has been restored and everything seems to be ok. He opened a ticket with Cryptsy support and received a response four hours later.

Edit 6: 4/20/14 6:25 PM EST. A Cryptsy customer has sent me an email and told me that not all of their issues have been sorted out. They’ve been emailing Cryptsy support, but still have a negative balance.

Edit 7: 4/22/14 5:18 PM EST. The second user who I talked to online, ‘loq’, had his problems sorted out two days after sending in a support ticket.

Do you have any information about the Cryptsy problems? Let us know in the comment field below!

Last modified (UTC): April 22, 2014 23:19

Tags: cryptsy
Jonathan Saewitz @SuperCryptoGuy

I am a teenager in high school who is very interested in digital currencies. I enjoy researching Bitcoin and other digital currencies, but my favorite crypto is Dogecoin. Please feel free to email me at jonathansaewitz@gmail.com.