The Florida based Bitcoin exchange Cryptsy was shut down earlier this year leaving lot of users short of their bitcoins. Repeated attempts to contact Paul Vernon, the founder of Cryptsy turned futile until now. A recent article on the Miami New Times claims to have interviewed Paul over email.
According to the publication, it received an email from the founder of Cryptsy soon after reports about him fleeing to China to hide from the US legal system surfaced on various publications including the Miami New Times. The mailer identifying himself as Paul Vernon apparently offered to clarify the circumstances around Cryptsy’s downfall and his disappearance.
The publication had sent a series of questions for him to answer and earlier today it published his responses.
According to the responses sent, Paul confesses that he made a mistake by not informing customers about the hacking incident where the platform lost funds. He claims to have done so because he believed that he could fill in the missing funds from Cryptsy’s revenues. However, the falling bitcoin prices and reduced trade volume made it impossible. He also adds that he regrets the decision he made at that time.
Regarding the $1.3 million house he bought in 2015, Paul claims that the money was part of the $3 million revenues made by the company, where he took a salary of $1.1 million through Cryptsy’s payroll and another $600000 as a loan from the company.
And finally, regarding the huge amount of bitcoin encashed by Paul Vernon on Coinbase, he explains that the company used to make revenues in the form of bitcoin and it is the same bitcoin which was converted to fiat on Coinbase.
He also mentions few people who knew about the theft and expresses his confusion regarding the failure of his former wallet manager’s failure to divulge those details to the lawyers handling the class action lawsuit filed against him and Cryptsy.
While Paul has attempted to throw some light on the incidents involved in the downfall of the exchange, it is unlikely to convince or comfort the ones who lost money after Cryptsy closed its doors.
Ref: Miami New Times