Cryptsy CEO may have stolen $3.3m from exchange

posted almost 6 years ago
Cryptsy CEO Paul Vernon may have stolen as much as $3.3m from the now-defunct digital currency exchange and destroyed evidence of his illicit actions.

That's according to new court documents from the ongoing class action lawsuit filed against the troubled industry exec. A report from court-appointed receiver James Sallah, published on 2nd August, details efforts to take control of assets tied to Cryptsy, most notably the digital currency holdings sought by the exchange's former customers.

The updates are the latest to follow Cryptsy's collapse in January, when after months of growing issues, Vernon blamed the closure on a previously undisclosed hack. At the time, Vernon claimed as much as $10m in customer liabilities.

Yet, court documents that surfaced at the time revealed that Cryptsy’s failure was predicted a month prior due to a lack of profit. That collapse ultimately sparked a class action lawsuit, and in April, a court approved an asset freeze that pushed the defunct exchange into receivership.

Now, that receiver is alleging millions of dollars worth of digital currency was taken from the exchange by Vernon over the course of its operation.
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