Bitcoin & Crypto & NFT News
The legal team behind the class action lawsuit against defunct digital currency exchange Cryptsy has launched a new site in a bid to locate potential claimants.
The site, CryptsySettlement.com, details the process by which affected customers of the exchange can submit a claim or to request an exclusion – an option potentially preferred by those hoping to launch their own litigation related to the exchange. Potential claimants have until 17th May to file, with a fairness hearing scheduled for 2nd June.
According to David Silver, one of the attorneys working on the class action suit, the settlement fund has collected over $1m. In October, plaintiffs in the case settled with Lorie Ann Nettles, the ex-spouse of CEO Vernon, who they claimed had benefited from funds received during the operation of the exchange.
That said, any potential payout would need to be approved by the court in Florida. As the site statement explains:
“The Court in charge of this case still has to approve the settlements with the Settling Defendants. Payments will be made if the Court approves the settlements and orders that the settlement funds be distributed, and if any appeals of the Court’s approval of these settlements are resolved in Plaintiffs’ favor. Please be patient.”
The launch comes more than a year after Cryptsy, following months of growing complaints over site problems, withdrawal delays and concerns about its insolvency, abruptly closed its doors after claiming it had been hacked two years prior. The class action lawsuit was filed a day before Cryptsy shut down.
The situation became messier as the months progressed. Court documents obtained by CoinDesk indicated that Cryptsy’s downfall was foreseen by CEO Paul Vernon, who fled to China following the collapse of the exchange. In past comments to CoinDesk, Vernon said that Cryptsy’s insolvency was kept hidden to avoid a “panic”.
In April, following a request from the class action plaintiffs, a Florida court pushed Cryptsy into receivership, setting the stage for customers to seek recourse for the funds they lost.
Settlement site aside, the legal process shows no sign of abating. Late last year, the class action lawyers filed suit against Coinbase, alleging that the digital currency exchange startup was used to clear millions of dollars in illicit proceeds.
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