Cryptsy CEO Paul Vernon has fired back at allegations he moved millions of dollars in funds from the now-defunct digital currency exchange to personal accounts.
In new statements, Vernon told CoinDesk that the finding, issued by the court-appointed receiver earlier this month, is "misleading", arguing instead that the contested money movements came as a result of mingling business and personal accounts.
Vernon told CoinDesk:
Cryptsy collapsed earlier this year following months of growing complains about withdrawals. The exchange ultimately closed its doors, blaming a debilitating hack in 2014 that it said had left it insolvent and with millions in liabilities.
Vernon did not not immediately respond to questions about the other allegations included in the filing, such as the claim that he deleted information from Cryptsy’s servers before the receiver took possession of company assets.
He further accused the receiver of "intentionally" avoiding information that "may be detrimental" to his case, while refuting claims about the exchange improperly handled funds held in alternative digital currencies.
"I do not know why the receiver, whom is supposed to be neutral, is cherrypicking information that only benefits the plaintiff," he said.
Representatives for the class-action lawsuit’s plaintiffs were not immediately available for comment.
Image via YouTube
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.