Cryptsy trading halted

[Chris Sokolowski]

This morning, we decided to halt trading at Cryptsy. We requested a BTC withdrawal at 3:41 AM on November 8, and as of this post, 24 hours later, the withdrawal is still "pending" in Cryptsy's system. I have contacted Cryptsy, and all they did was respond with the same generic response:

Hello Christopher,

I am sorry for the inconvenience this may have caused you.
We do apologize for the inconvenience. We are currently experiencing delays with BTC withdrawals.
Our technical team is working on this issue. We will update you soon as your withdrawal has processed.
If you would like to cancel your withdrawal while we work on this issue, please let us know.
We are sorry for the delay and thank you for your patience.

Sincerely,

Joyce
Cryptsy.com

Regardless of whatever with Cryptsy is causing this delay, we don't want to have to delay our payouts for multiple days. Therefore, we have disabled Cryptsy and will only be trading through our other five exchanges until Cryptsy fixes its problems. We are not sure how this will affect profitability, but if you are earning coins that are only traded at Cryptsy, then your payouts may be delayed until Cryptsy fixes its withdrawals. In the meantime, I have transferred funds from my personal account to so that BTC payouts can go out on time.

Once Cryptsy sends us all the withdrawals we are owed, then I will test Cryptsy's withdrawals to make sure that they execute in a prompt time. I will only re-enable Cryptsy for Prohashing if withdrawals take less than three hours.

[Steve Sokolowski]

I want to point out that this decision was not taken lightly, and we recognize the possible decrease in profitability that will occur as a result. The delays in Cryptsy withdrawals have been occurring for days, increasing in length over the past week. These delays are in addition to the 10 hour delays we have periodically been encountering due to the bitcoin network being overloaded with transactions (which I pointed out in yesterday's blog post). Chris submitted multiple tickets, and this particular ticket asked to speak with a supervisor, a request that was ignored.

Cryptsy's debts to us now total $1500; this delayed withdrawal was only part of what is owed. We had to take action and buy these bitcoins out of personal funds before the total owed by Cryptsy got out of hand. Otherwise, a sudden increase in the price of bitcoin could ruin us.

As Chris said, we will reexamine our relationship with Cryptsy after we determine that withdrawals are processed promptly every night for at least one week.

[pumaro]

Steve,
I have experienced the same exact issue at Cryptsy, I was only able to move 6 BTC to Bittrex via DGB withdraw. I was able to convert back to BTC and withdraw quickly. I am trying to move the rest of my coins away as quickly as possible.
Ron

[Steve Sokolowski]

Thanks pumaro. Chris was successfully able to cancel a 3 bitcoin withdrawal. He converted some of it to Litecoins and has issued a withdrawal request. We'll use the litecoins to get to Poloniex where we can sell them and reimburse our personal accounts.

Hopefully this will work. We'll keep you updated. Whatever happens, the pool's reserve is positive already since Chris injected $2,000 of his own money.

[coinaday]

Did the LTC work for you?

Honestly, I'm glad to see you guys making this move. I don't have good expectations for where Cryptsy is going to go and I don't want to see you get burned by them.

Is there a list of the five exchanges you now use? You guys got Cryptopia added at some point, right?

[Steve Sokolowski]

Chris was successfully able to remove all of our money from Cryptsy. He purchased Monero, Ethereum, and other coins that had deep markets on Poloniex and sold them there.

He took a loss of about $40 due to the slippage he caused and all the withdrawal fees, but losing a few percent is better than getting nothing out.

[Chris Sokolowski]

I'm glad we got out of Cryptsy when we did. Their wallets are now all frozen supposedly due to a server failure.

Considering that we need two dedicated servers just to host our coins and that we can operate with one server failed (albeit with half the coins offline) I wonder about how Cryptsy runs its operations and if this is just an excuse for a more serious issue.

Whatever goes on with Cryptsy, we are completely unaffected since we ceased all operations with Cryptsy two weeks ago. We trade through six other exchanges: Poloniex, Bittrex, Bleutrade, C-CEX, Cryptopia, and Yobit, and they all are working properly.

[kires]

Wow, talk about dodging a bullet... Good call!