NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Exchange Cryptsy Faces an “Updated” Class Action Lawsuit

Yashu Gola
Yashu Gola
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The class action lawsuit filed against Bitcoin exchange Cryptsy has just been updated with the name of one more defendant.

The updated lawsuit filed by Silver Law Group (SLG) and Wites & Kapetan names Lorie Ann Nettles – Paul Vernon’s former wife – as the new defendant. It says that both the individuals, who operated an online business for public to trade and exchange Bitcoin and similar cryptocurrencies, prevented customers from accessing around $USD5 million worth of assets. Instead, the defendants misused these funds for their own business and personal use, including the cash purchase of a $USD1 million worth waterfront villa in West Palm Beach, Florida.

The lawsuit goes on accusing that Vernon and Nettles took part in a deceptive marriage resolution to improperly transfer the said villa’s ownership to Nettles. The marriage dissolution, according to the available court documents, was concluded within four months.

The accusations made in the lawsuit has brought Vernon and Nettles under the purview of multiple criminal charges, including Claims for Negligence, Conversion of Funds and Property, Violation of Florida’s Deceptive and Unfair Trade Practice Act, and Unjust Enrichment.

“The class action lawsuit is pending in the United States District Court for the Southern District of Florida under Case No. 9:16-cv-80060,” SLG confirmed via mail.

A Look into Cryptsy’s Past 

Cryptsy was launched in 2013 under the flag of Project Investors Inc, owned and operated by Paul Vernon. The new Bitcoin exchange later registered itself with the Financial Crimes Enforcement Network (FinCEN) as a “Money Services Business”, which legitimately enabled it to solicit public to register, deposit and trade bitcoin and other digital currencies for fiat.

In May 2015, Cryptsy reported on its blogpost that millions of dollars in customers’ funds were disappeared from its online wallets. During the same time, many customers and media outlets accused Cryptsy of not complying with the FinCEN regulations after discovering that it never filed a Suspicious Activity Report with the regulators after the “alleged theft” of $USD5 million.

Sometime around November 2015, many of Cryptsy customers reported of difficulties in withdrawing funds from Cryptsy accounts. Vernon however blamed it on a “server failure” and assured the issue will be resolved. In another tweet, he said the official website www.cryptsy.com had faced a DDOS attack.

Two days after the commencement of lawsuit — on January 15th 2016 — Cryptsy admitted on its blog that it had concealed facts regarding the insolvency of $USD5 million from customers and regulators. The exchange also admitted that it had lied to customers about the nature of the problems all this time. Vernon however tried to reason with customers, saying that he didn’t want to cause any panic. He also sought help from the Bitcoin community to recover the lost funds.

Readers can access the full copy of the lawsuit here.

Source: Mail Tip

Tweet123Share196ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

值得在7月下注的百倍幣有哪些?5個即將爆發10X上漲的最佳加密貨幣!

進入2025年第三季,加密貨幣市場熱度不減,資金輪動快速。與其追逐已經爆發的比特幣與以太坊,不少投資者正悄悄將目光投向那些價格仍低於0.1美元的潛力幣種。這些「百倍候選人」具備低門檻、高槓桿潛力,正是...

Mark Mak 2 hours ago

Bitcoin Market Enters Caution Zone Amid Rising Sell-Side Pressure, Analyst Says

Although Bitcoin (BTC) has recorded slight gains over the past month – up 3.6% in the last 30 days –...

Ash Tiwari 3 hours ago

Альткоины усиливают позиции на фоне стабильности Биткоина

Рынок альткоинов уже несколько месяцев страдает от продолжительной волатильности и сильного давления продаж, что заставляет многих инвесторов задаваться вопросом, когда...

lisachaikina 4 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin crash

Analyst Calls For Bitcoin Crash As Price Pulls Above $108,000 — Details

Scott Matherson 27 minutes ago
solana

Solana Summer Loading? SOL Eyes $180 Following Staked ETF-Fueled Breakout

Rubmar Garcia 1 hour ago
Ethereum

Ethereum At Risk? If $2,200 Cracks, $1,160 May Be Coming

Keshav Verma 2 hours ago

Premium Sponsors

Press Releases

  • Bitcoin Eyes $112K on Fed Cut Bets and ETF Frenzy

    5 hours ago
  • 仮想通貨プレセール残り24時間で800万ドル目前 次の100倍銘柄となるか?

    ...

    18 hours ago
  • 1ドル以下で注目される仮想通貨おすすめ、Solana系トークンに割安銘柄あり?

    ...

    18 hours ago
  • Най-добрите криптовалути преди...

    18 hours ago
  • リップルとSECの訴訟終了後に注目すべき新しい仮想通貨プロジェクトとは

    ...

    18 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.