Cryptsy CEO Paul Vernon may have stolen as much as $3.3m from
the now-defunct digital currency exchange and destroyed evidence of his illicit
actions.
That's according to new court documents from the ongoing class
action lawsuit filed against the troubled industry exec. A report from
court-appointed receiver James Sallah, published on 2nd August, details efforts
to take control of assets tied to Cryptsy, most
notably the digital currency holdings sought by the exchange's former
customers.
The updates are the latest to follow Cryptsy's collapse in
January, when after months ofgrowing issues, Vernon blamed the
closure on a previously undisclosed hack. At the time, Vernon claimed as much
as $10m in customer liabilities. He later told CoinDesk that customers were misled in order to avoid a
"panic".
Yet, court documents that surfaced at the time revealed that Cryptsy’s
failure was predicted a month prior due to a lack of profit. That collapse
ultimately sparked a class action lawsuit, and in April, a court approved
an asset freeze that pushed the defunct exchange into receivership.
Now, that receiver is alleging millions of dollars worth of
digital currency was taken from the exchange by Vernon over the course of its
operation.
