Mystery of Cryptsy’s Collapse Grows as CEO’s Whereabouts Unknown

May 10, 2016 | Back to News

David Silver Quote:

Speaking to CoinDesk, attorney David Silver of the Silver Law Group reiterated a past call for Vernon to cooperate with plaintiffs and said that efforts to gain control of assets and client funds remain ongoing. ”While we are trying to do everything we can to protect our clients’ interests, we are limited in what we can do,“ he said. ”Members of the Cryptsy community have been actively following this case, and any help or information they can provide is much appreciated.

One month after a Florida court first appointed a receiver in charge of troubled digital currency exchange Cryptsy, the representative has filed a report detailing efforts to retain information about the whereabouts of Cryptsy assets, as well as CEO Paul Vernon.

Entered by receiver James Sallah, the filing comes months after users first began voicing concerns about their inability to withdraw funds from the exchange or receive clarity from its management on the status of such services.

Back in January, two Florida law firms filed suit against Project Investors, the company that oversaw the exchange’s operation, just prior to the emergence of claims that Cryptsy had been hacked and robbed nearly a year and a half prior. At the time, Cryptsy claimed that it owed its customers millions in various digital currencies, denominated primarily in bitcoin.

Claims about the hack, widely disputed by both customers and critics, were kept hidden at the time to avoid a panic, Vernon told CoinDesk in January, but that dwindling income brought the extent of the exchange’s insolvency to the fore.

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