Cryptsy claims it was hacked, millions lost in Bitcoin

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Cryptsy world’s premier bitcoin and digital currency exchange claims that it was hacked. About 13,000 BTC ( $7.5m) and 300,000 LTC ($2.08m) was stolen.

According to Cryptsy official blog post, developer Luck7Coin has placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit.

This issue started a year and a half ago in Cryptsy, and now it was told, which raised questions such as why were clients not warned immediately and why were they allowed to continue depositing their funds into the exchange.

Big vern tried to involve the FBI in the matter, but has not received any help from them. Cryptsy is now under investigation by the US federal court.

Cryptsy owes around 10,000 BTC to its clients and Big Vern has only three ways to  solve this problem

  • To shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements.
  • Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.
  • If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.

Big Vern is looking for some help from bitcoin community leaders to participate in an advisory board for keeping Cryptsy operational.

 

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