Cryptsy Cryptocurrency Class Action Settlement

CRYPTSY CRYPTOCURRENCY CLASS ACTION LAWSUIT SETTLEMENT UPDATE:

• Cryptsy accountholders who were unable to access their cryptocurrency at Cryptsy may be entitled to receive additional compensation after a recent “claw-back action” lawsuit resulted in the recovery of an additional $874,391.24 for the Class.
• Those who already made an approved claim do not need to take any action. Those claims will be reviewed, and additional payments issued.
• Those who did not make a claim in the first recovery or who had their claim denied may make a claim or supplement their previous claim. The deadline to file this claim is Jan. 12, 2022.

Cryptsy cryptocurrency settlements have been reached in a class action lawsuit filed by account holders who allege they were unable to access cryptocurrency held in their Cryptsy accounts.

Cryptsy account holders who are unable to access their cryptocurrency may be entitled to compensation from these class action settlements, and their rights may be affected by the class action lawsuit that is pending against the remaining defendants.

The Cryptsy class action lawsuit alleges defendants Project Investors Inc., doing business as Cryptsy and Paul Vernon, stole the cryptocurrencies of Cryptsy account holders and converted it for their own use; defendant Lori Ann Nettles, during her marriage to and divorce from Vernon, was unjustly enriched by assets purchased with the proceeds of the stolen cryptocurrency; and defendants Ridgewood Investments Inc. and Kaushal Majmudar (“KM”) were unjustly enriched by the consulting fees received from Cryptsy.

According to the class action lawsuit, the Cryptsy defendants operated an online business that allows consumers to exchange, invest and trade in digital cryptocurrencies such as Bitcoin and Litecoin, which exist only in the “virtual” world. Cryptsy customers deposited their digital currency in accounts held by Cryptsy.

The plaintiffs assert the Cryptsy defendants unlawfully denied Class Members the ability to use or withdraw the funds in their Cryptsy accounts.

Nettles, Ridgewood, and KM deny they have engaged in any wrongdoing and maintain they have not violated any laws. However, they have agreed to settle the class action lawsuit to avoid the burden and expense of ongoing litigation.

These two cryptocurrency settlements, one involving Nettles and the other involving Ridgewood and KM, are independent and separate. Therefore, a judge may decide to approve one or both of the Cryptsy cryptocurrency settlements.

The litigation against Cryptsy and Vernon is ongoing.

According to the class notice, these defendants have repeatedly refused to respond to the Cryptsy lawsuit. A judge has issued a default judgment against them, and Vernon has reportedly fled to China.

Class Members in the Cryptsy cryptocurrency settlement will be notified if money or other benefits become available from any of these non-settling defendants in the future.

Class Members who would like to opt out of the cryptocurrency settlement must have done so no later than April 17, 2017.

The deadline to object to the cryptocurrency settlement was May 3, 2017.

NOTE: The plaintiffs have filed a separate lawsuit against Coinbase Inc. in attempt to recover more money for Class Members.

Who’s Eligible

Class Members of the Cryptsy settlement include anyone who was a Cryptsy account holder between Nov. 1, 2015 and June 2, 2017, and held Cryptsy Bitcoins, alternative cryptocurrencies or other forms of money that you are unable to access, trade or otherwise obtain.

Potential Award

To Be Determined.

Each claimant who submits a timely and valid claim form will be allocated a pro rata share of the net class action settlement fund based on the value of the claim compared to the total number of valid claims filed.

Proof of Purchase

Claimants must provide details about their holdings at Cryptsy between Nov. 1, 2015 and June 2, 2017.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement, do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

4/17/2017

SECOND/SUPPLEMENTAL CLAIM DEADLINE: 01/12/2022

Case Name

Leidel, et al. v. Project Investors Inc., Case No. 9:16-cv-80060, in the U.S. District Court for the Southern District of Florida

Final Hearing

6/2/2017

UPDATE: The Cryptsy Ctryptocurrency class action settlement was granted final approval on June 13, 2017. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

UPDATE 2 on July 26, 2017: According to the settlement website, settlement fund distribution is expected to take place in Q1 of 2018.  Top Class Actions will let our viewers know as soon as we learn that checks are in the mail!

Settlement Website

www.CryptsySettlement.com

Claims Administrator

Cryptsy Claims Administrator
1801 Market Street, Suite 660
Philadelphia, PA 19103
Phone: 1-888-868-4936
Fax: 1-215-525-0209

Class Counsel

Marc A. Wites
WITES & KAPETAN PA

David C. Silver
SILVER LAW GROUP

Defense Counsel

Mark A. Levy
BRINKLEY MORGAN

Jose G. Sepulveda
STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON PA