PSA: Cryptsy Down, Claiming DDoS

Journalist:
November 25, 2015

For nearly twelve hours, Cryptsy.com, an elder “alt coin” exchange which has been the subject of semi-regular community outrage for various reasons, has been inaccessible. According to one of the exchange’s proprietors, Paul Vernon, the site has suffered a DDoS attack not unlike the one CCN has been experiencing as of late.

The difference is that CCN has managed to come back online in a matter of a couple hours, not half a day. More importantly, CCN isn’t holding onto anyone’s money.

Cryptsy has recently had other serious issues as regards its wallet servers, which it is claiming will have to be rebuilt before withdrawals of any type can resume. These are not minor issues. Many thousands, if not into the millions, are daily traded across the exchange in various ways, and Cryptsy rakes it in whenever someone goes to withdraw.

CCN is currently investigating numerous claims of fraud on the part of Cryptsy. The boilerplate response from Cryptsy is that users who are unable to withdraw are in that position because they refuse to verify their accounts, but CCN has heard other claims as well.

Also read: Cryptsy Needs to Get Away From Paycoin – Now

We encourage all our readers to send in any information, screenshots of exchanges with Cryptsy support, and anything else which may help us accurately present the story of the withdrawal troubles. Cryptsy claims to be a regulated exchange but there have been other outlets which have said that they are currently under investigation in a major way, potentially related to the assistance the company rendered to defamed former GAW CEO Josh Garza. The thinking goes that Garza utilized the exchange to wash perhaps millions of dollars worth of ill-begotten paycoins.

CCN would like to tell the story as it is, so please send any information to this writer, who is tasked with digging in (paul.madore@cryptocoinsnews.com). Thus far, attempts to get accurate information from Cryptsy themselves have resulted in one-line responses that amount to “not much to say about that.”

For the present, the most we can do is remind all our readers: never leave coins of any kind on an exchange. An exchange is not a wallet, and any place that you don’t control the private keys, well, you don’t control anything.

Featured image from Shutterstock.

Last modified (UTC): November 25, 2015 18:04

P. H. Madore @bitillionaire

P. H. Madore has written for CCN since 2014. Please send breaking news tips or requests for investigation to bitillionaire+phm@gmail.com. He lives in Maine, USA. A single father of four young children, he does not discourage financial donations, provided they do not come with strings attached.