A federal court has appointed a receiver for Cryptsy, the cryptocurrency exchange that claims to have lost $5 million in funds to theft. In response to the lawsuit by Cryptsy clients seeking to recover their funds, the U.S. District Court Southern District of Florida appointed James D. Sallah, Esq. as the receiver and given him control of Cryptsy’s assets.
The court has taken possession of Cryptsy’s assets, “of whatever kind and wherever situated.” All powers of the company’s agents, employees, officers and directors are suspended.
The court assigned the receiver in response to a suit by Brandeon Leidel, Michael Wilson and “all others similarly situated,” a group that has also sued to halt the sale of a property that the defendants bought in Delray Beach, Florida. Court Freezes Assets
All individuals and entities with any control of Cryptsy assets are prohibited from transferring them. The freeze includes assets on deposit with any financial institutions, crypto exchanges or third parties.
The order grants the receiver the right to use “reasonable” efforts to determine the location and value of Cryptsy’s assets.
The receiver faces a big task considering Cryptsy’s principal, Paul Vernon, has disappeared and his ex-wife, Lori Ann Nettles, also a defendant, has taken ownership of their home in a divorce agreement.
While the home is on the market for $1.5 million, there is no current estimate for the value of Cryptsy’s assets, said David Silver, Esq., of the Silver Law Group in Coral Springs, Florida., who is representing the plaintiffs.
The order calls on the defendants, upon being served, to provide all assets belonging to Cryptsy.All entities owing any obligation to Cryptsy are ordered to pay all such obligations to the receiver. House Transfer To Hide Assets The suit seeking to prevent the sale of the Delray Beach property claims Vernon fraudulently transferred it […]
