Home News According to a court notice, Cryptsy victims may be eligible for additional...

According to a court notice, Cryptsy victims may be eligible for additional compensation


According to a court notice, Cryptsy victims may be eligible for additional compensation. Cryptsy was a cryptocurrency exchange that went bankrupt in January 2016 after months of user complaints about withdrawal difficulties. Before fleeing to China, Cryptsy Founder Paul Vernon took millions of dollars in digital assets from consumers, according to the court. Later that year, a number of Cryptsy users filed a class-action lawsuit against the company and its founder. And the exchange fell into receivership.

Who lost money in a 2016 crypto exchange robbery may be eligible for additional compensation

Some older users of the now-defunct cryptocurrency exchange Cryptsy received word last week that the continuing class settlement procedure had taken a new turn. The document, which was approved by the United Suggests District Court for the Southern District of Florida, states that anyone who was deceived during the digital finance platform’s 2016 collapse may be entitled to money from extra recovery.

The court-appointed receiver began liquidating various assets related to the deceased company in June 2017. Collecting approximately $1.5 million to be sparse among the victims.

The receiver and class representative then filed a second complaint against Coinbase. Alleging that the company aided and abetted Vernon’s criminal behaviour by allowing him to transfer stolen assets to US dollars. Coinbase agreed to pay over $1 million to duped Cryptsy account users in a class action settlement in January 2020. After nearly three years of litigation.

The most recent announcement relates to the recovery of swindled funds in yet another round. The victims’ representatives were able to secure an additional $875.000 on behalf of the class through legal action against Xiuxia Liu, Paul Vernon’s girlfriend.

How they will distribute the refunds

The cash will be allocated proportionally to people who made successful claims in the two prior settlements. Or who filed a valid claim in the Liu settlement by January 12, 2022. According to the letter, payments are likely to begin on or before February 20, 2022.

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