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.