The court-appointed receiver for Cryptsy , the defunct, Florida-based cryptocurrency exchange that claims to have lost more than $5 million in investors’ funds to theft, has filed a report that identifies some of the banks and exchanges the defendants used in operating the scheme that left hundreds of investors without access to their accounts.
The receiver, James D. Sallah, an attorney for Miami, Fla.-based Payton & Associates LLC, filed the report in the U.S. District Court Southern District of Florida.
The court appointed Sallah as receiver last month in response to an investor lawsuit and gave him control of Cryptsy’s assets, CCN reported. Investors Want Answers
The class action suit was filed on behalf of Brandon Leidel , Michael Wilson and “all others similarly situated” against Project Investors, Inc., doing business as Cryptsy, and Paul Vernon and Lorie Ann Nettles. The plaintiffs claim Vernon, Cryptsy’s principal, closed the company’s operations and fled to China with approximately $5 million in cryptocurrencies and investor funds.
Investors claim they have not been able to access their Cryptsy accounts and that Vernon and Nettles (now his ex-wife) purchased a home in Delray Beach for $1,374,881 in cash from Cryptsy-derived funds. Nettles later received the property in a divorce settlement from Vernon.
Sallah, a former Securities & Exchange senior counsel, has sought to secure wallet, account and bank records in Cryptsy’s name. He gained access to business records after subpoenaing various parties. A First Month Update
The purpose of his first report is to advise the court and investors what he has done since assuming receivership one month ago. He said his investigation is still in the early stage, and he expects to file a second report in 90 days.
“We continue to be concerned that our clients’ investments and portfolios at Cryptsy are still missing,” David Silver, […]
