question mark The controversy surrounding the digital currency exchange Cryptsy has shown little sign of abating amid problems with customer withdrawals, allegations of fraud and mismanagement, user frustration and a lack of clarity from the exchange.
Founded in 2013, Cryptsy is a digital currency exchange that lists bitcoin and a variety of alternative cryptocurrencies, or altcoins , and for months, customers of the exchange have voiced concerns about delayed withdrawal requests. Some customers claim that their funds have been unavailable for weeks or more at a time.
Many of these complaints have filtered throughout social media, sparking speculation that the exchange is set to follow in the footsteps of Mt Gox, the Japanese bitcoin exchange that shut its doors and later declared bankruptcy after potentially losing hundreds of millions of dollars in customer funds.
In some instances, according to testimonials from Cryptsy customers, withdrawals have been successfully made in lower-volume altcoins – a move that has reportedly resulted in disparate prices between exchanges and may have resulted in Cryptsy being removed from exchange-oriented services like Coinmarketcap.
At this time, it is unclear how much money is being held by the exchange or the total amount of outstanding withdrawal requests, though some have speculated that the amount may be in the millions of dollars. Services cut ties
In light of the problems, some cryptocurrency services are moving to sever ties with Cryptsy, citing both the problems with withdrawals as well as problematic exchange rates.
As reported last week , digital currency pricing website Coinmarketcap moved to delist Cryptsy amid the ongoing issues. At press time, the exchange remains unlisted on the site.
Altcoin mining pool service Multipool.us announced on 4th January that it was suspending its auto-deposit integration with Cryptsy.The site said in a statement at the time: "We have attempted several times now to contact […]
