Class Action Lawsuit Filed Against Digital Currency Exchange Cryptsy

By January 14, 2016Bitcoin Business

court, gavel Two Florida law firms have filed a class action lawsuit in US district court against digital currency exchange Cryptsy and its CEO, Paul Vernon.

Filed in the US District Court for the Southern District of Florida on 13th January, the case alleges negligence, unjust enrichment, conversion and violation of Florida’s Deceptive and Unfair Trade Practices Act . The lawsuit was filed by Jinyao Liu, a Cryptsy customer based in Virginia.

Liu, in addition to other members of the class, is being represented by Wites & Kapetan, PA and the Silver Law Group , the latter of which filed suit in state court on behalf of a Cryptsy customer last year . That case was later settled, according to the firm.

Attorney David Silver told CoinDesk that the new suit grew out of a growing number of complaints that his firm received regarding withdrawals.

In interview, Silver highlighted that Cryptsy is registered with the Financial Crimes Enforcement Network (FinCEN), arguing that the exchange needs to be forthcoming with its customers about site issues.

He told CoinDesk: "As a FinCEN member, you have certain obligations, and those obligations require you to communicate with your customers. And here, customers don’t know why they are being denied access to their money." The exchange, founded in 2013, offers a number of markets for bitcoin and alternative cryptocurrencies. Customers have complained for months that Cryptsy has withheld their withdrawals for extended periods of time, an issue the exchange has attributed to technical problems.

Vernon did not immediately respond to requests for comment. Case details

According to the complaint, the plaintiff made a deposit on 27th December, and since that date has not received a withdrawal despite repeated requests."Plaintiff, on December 27, 2015, deposited 84,000,000 Dodge Coin (a commonly used cryptocurrency) to fund his CRYPTSY account. The value of that […]

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