Bitcoin exchange Cryptsy: Chef allegedly embezzled millions

In January, the Bitcoin exchange Cryptsy had declared insolvent and named as basic loss of a hack, 2014. Now the trustee says that the Cryptsy boss has diverted 3.3 million dollars into his own pocket.

The head of the fallen into insolvency Crypto Wallet Cryptsy is accused of having embezzled funds market. As is clear from a report of the appointed liquidator James Sallah, to Paul V. crypto money have diverted worth around 3.3 million dollars into his own pocket. At the same time he is also trying to destroy evidence. Sallah handed its report to a district court in Florida one that negotiates a class action against V., as the skilled service Coindesk reported.

In January Cryptsy had declared to be insolvent. The reason a time unreported hacker attack in 2014 was given in which unknowns 13,000 Bitcoins (then worth about EUR 7 million) and 300,000 Litecoins (then around 1.9 million euros) to have mastered. Trying to keep running on fractional reserve and gradually compensate for the losses is, ultimately failed. In the Bitcoin community, the market has long been hotly debated for their active times due to frequent trading dropouts and late payments.

Users had been brought to the notice towards a class action, in April the market was then placed under administration. According to the liquidator V. to have branched off from 2013 exchange funds amounting to about 1100 Bitcoin and exchanged on various other exchanges to the then exchange rate. The money had ended up in his account and his then wife and flowed among others in the financing of a beach estate.

At the same time probably wanted V. or someone other telltale traces in April on the Exchange servers blur: Three times someone had given with the login of V. in a remote connection erase commands for the database of all customer data and account balances. The information could not yet be restored. Neither the work of a forensic team still searching for backup was successful. The full extent of embezzlement by V. So let not yet be quantified precisely. Sallah complained also that V. still actually controlling belonging to the stock exchange crypto cash balances and have already carried out several times transfers.

V. has not taken any position on the allegations. He is said to have fled to China, where he was said to be also involved in the creation of a crypto wallet named Bitebi9 that is currently not reachable.

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