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A random user on Reddit recently accused cryptocurrency trading platform Cryptsy of stealing his funds.
“I made an account on cryptsy last year after getting some Dogecoin and traded it for BTC,” CRYPTONUMISMATIST narrated. “It wasn’t a huge amount of money and I had created a unique login/password and kept the credentials offline so I wasn’t too concerned. I log in today, over a year later, because I wanted to withdraw the BTC, and all my coin balances are 0.”
However, the Cryptsy staff ensured the accuser that his funds were safe and in fact were moved to a secure cold storage due to an overlong inactive period of his account. CRYPTONUMISMATIST however questioned Cryptsy’s intentions as they never informed him of any fund transfer. “Why is there NO INDICATION WHATSOEVER that balances are moved to ‘cold storage’,” he questioned the cryptocurrency exchange while further accusing them of misusing the funds of inactive accounts.
“Why do I have to collect all this evidence, deduce a f*** up on their part, and open a ticket?”
But We Were Just Doing Our Job
In the same post, CRYPTONUMISMATIST also accused Cryptsy CTO of misbehaving with him. He posted a long quote made by the exchange’s representative, in which he furiously explained his role to protect the funds stored in users’ hot wallets, especially when they themselves have left them unattended.
Considering the version told by CRYPTONUMISMATIST to be true, we believe Cryptsy was simply doing its part of job, i.e. securing coins from potential security breaches. The cryptocurrency exchange, at one point, also returned the user’s Dogecoin to sum up the matter. The user however claims that his Bitcoin funds are not returned yet. But indeed, he could be a troller who is simply messing with a smoothly run business.
Moral of the ‘Cryptocurrency’ Story
On the whole, cryptocurrency users are literally not allowed to trust exchanges when it comes to keeping their coins in their hot, and even cold wallets. Even the most prestigious trading platforms like BitStamp and BTER have faced security lapses. So better be preventive rather than abused.
NewsBTC doesn’t guarantee any allegation made by the aforementioned user, but is simply aiming to inform users of the risks involved in keeping funds online.
Cryptsy_Jim 
cohagen 
Wild Dog 
Due to this discussion, some have made very valid points. We will be taking a
closer look at how we are handling accounts that are inactive for long
periods of time. Our main priority is to keep our users investments as
secure as possible even if they are not currently active, and provide a safe platform to trade. We will keep
the userbase informed of any changes.
HAH! You got caught with you’re hand in the cookie jar and ya got slapped! You really think some young liberal wanna be anti gov punk living in mommas basement wouldn’t have an online melt down if you “touched his stuff”? Exchanges are in a nasty corner. You leave it alone and it gets hacked or a rogue employee heists it, you put it in safe keeping and you get called a thief.
You are not interested in helping anyone so stop pretending you are.. All you want to do is steal peoples money without telling them. Shame on you – it’s scamming businesses like Cryptsy that make digital currency look bad 🙁
I have also had coins stolen from my account by Cryptsy. They are refusing to unlock my account & give me my coins back. Don’t believe anything Cryptsy_Jim says as he is just trying to make Cryptsy look good on social media – he is one of the people who is refusing to fix things for me.. If anyone wants proof for a media article just let me know as it’s about time everyone knows the truth about their scam. CRYPTSY ARE THIEVES – STAY AWAY FROM THEM!