On November 2, Syscoin Team Manager Dan Wasyluk uploaded five legal documents to the official Syscoin blog. The documents detail Syscoin’s case against Ryan Kennedy/Moopay LTD and show Kennedy’s defense. Wasyluk explained the altcoin decided to make the documents public because the case has implications for the entire cryptocurrency community.
Syscoin is just one little corner in the rapidly growing crypto-currency landscape, but our case impacts everyone within it. Our case will set important legal precedents which will affect future cases. It will also send a clear message to would-be bad actors that their activities will not be tolerated and that they will be called to court to answer for their actions. Far too many of us have lost far too much bitcoin by trusting people who promised to be responsible with our wealth but instead chose to enrich themselves by scamming from their customers. The personal hardship and financial losses they cause are hard to quantify. We don’t think it has to stay like this.
A lot of the information contained within the documents had already been made public by Syscoin and their lawyers. However, two of the documents are from Kennedy or his lawyers and explain his defense. In the following witness statement, Kennedy claims he discovered a bug in the MintPal code that allowed “unscrupulous users” to withdraw more coins than they owned, which drained the reserve accounts. Moreover, he claims he never personally had possession of Syscoin’s bitcoins. Document available here.
A judge has now ordered Kennedy to hand over the server hard drives so forensic investigators can determine whether or not the alleged bug exists. CCN will continue to provide updates as the story develops.
What do you think of the legal documents? Comment below!
Disclosure: The author has no affiliation with Syscoin or Moolah, other than using both Prelude & MintPal.
Images from Syscoin & Shutterstock
Last modified (UTC): November 5, 2014 14:00