Cryptsy Threatens Bankruptcy, Claims Millions Lost in Bitcoin Heist

Embattled digital currency exchange Cryptsy is now claiming that it is insolvent.

The exchange alleges in a newly released blog post that it was the target of a hack in July 2014, an incident that it said cost it approximately 13,000 BTC ($7.5m at the time) and approximately 300,000 LTC (then $2.08m).

Unless the funds are recovered or a buyer is able to cover the losses, the post continued, the site will be shut down and bankruptcy declared.

The acknowledgement of insolvency and the hack claims come after months of customer withdrawal delays, comparisons to the now-defunct Japanese bitcoin exchange Mt Gox, and the filing of a class action lawsuit against the exchange.

Cryptsy said that it has outstanding liabilities of approximately 10,000 BTC, or roughly $4.15m at press time. The site, which previously said that it would suspend trading and withdrawals indefinitely, has been taken offline as of press time.Source: CoinDesk