Cryptsy Funds Have Moved To A Bittrex Wallet
With the investigation into Cryptsy still underway right now, it seems odd one of the exchange’s altcoin wallet addresses has a declining balance. To be more precise, someone noted how the Cryptsy Unobtanium wallet has been sending funds to Bittrex, where a major dump of the digital currency took place. So far, the Bittrex team remains tightlipped regarding the incident.
Cryptsy Funds On The Move
By the look of things, someone has been moving Unobtanium funds from a Cryptsy wallet over to the Bittrex exchange. Based on various Twitter reports – which are always subject to interpretation – it looks as if close to 15,000 UNO coins made it to the Bittrex platform yesterday, making it the largest Unobtanium altcoin wallet across all exchanges.
Several digital currency community members noticed this unexpected transfer of funds, and started sharing more details on Twitter:
— Craig Swalby (@cswalby) April 10, 2016
As one would come to expect from this type of action, it did not take long until the Unobtanium price on Bittrex started to collapse under the selling pressure. Even though the UNO price seems to be recovering right now, there was a lot of selling action taking place in the past 24 hours. Several community members allegedly reached out to Bittrex, asking them to freeze the wallet and all trading action in the Unobtanium market. At the time of publication, the exchange was still investigating the matter, and no further information has been provided.
Most people are well aware of the current court order against Cryptsy, which prevents the exchange from moving funds to a different wallet. James Sallah, the appointed monitor of Cryptsy funds, has full administrative control over all funds belonging to the exchange. Similar to what is happening with Mt. Gox, James Sallah will oversee any claims regarding ownership of coins.
Thank you for your reports regarding the possible coin movement from Cryptsy. Unfortunately, we can't comment about ongoing investigations.
— Bittrex (@BittrexExchange) April 11, 2016
Keeping this in mind, it seems very unlikely the funds in the Unobtanium wallet was moved by Mr. Sallah himself. After all, the funds were dumped on Bittrex immediately at the lowest prices possible, which may indicate an unknown third-party had – or has – access to Cryptsy funds. For now, the only thing we can do is await the Bittrex investigation, and see whether or not James Sallah has an explanation for this illegal transfer of funds.
What are your thoughts on this story? Why are the funds moving all of a sudden? Let us know in the comments below!
Images courtesy of Cryptsy, Bittrex