UPDATE (9/19/22)
On September 13, 2022, the Claims Administrator distributed check payments to certain eligible claimants, and on September 16, 2022, the Claims Administrator sent PayPal payments to certain eligible payments. Claimants who previously received a wire payment will again receive a wire in the next two weeks if the Administrator has been in contact with you. If you have not been contacted to confirm your wiring information, please contact the Administrator at: info@cryptsysettlement.com.
UPDATE (4/13/22)
On April 6, 2022, the Claims Administrator disseminated notices to deficient and denied claims, where applicable. Claimants who were emailed or mailed a deficiency or denial notice have 20 days to respond per the Settlement Agreement, which means responses are due no later than April 26, 2022. Claimants who contest the rejection or insufficient designation of their claim, must provide documentation that supports their claim via email to info@cryptsysettlement.com or to the following mailing address:
All responses received by April 26th will be reviewed and processed. The Claim Administrator estimates to begin issuing payments to eligible claimants in July of 2022.
If you were a Cryptsy account holder and unable to access your cryptocurrency at Cryptsy, you may be entitled to receive compensation from additional monies from the ongoing litigation to recover monies for victims of the now defunct cryptocurrency exchange that was known as Cryptsy. Recently, a lawsuit known as a “claw-back action” was brought and resulted in the recovery for the class of Cryptsy victims an additional sum total of $874,391.24. That action is styled James D. Sallah, Esq., not individually, but solely in his capacity as the Court-appointed Receiver for Project Investors, Inc., d/b/a Cryptsy. v. Xiuxia Liu, U.S. Dist. Ct. - S.D. Fla. -- Case No. 9:20-cv-81041-MARRA (the “Liu Action”). You can read about how the additional monies were obtained below the charts on this page, and in the Notice on the Important Documents page of this website.
If you already made an approved claim in the class action against Cryptsy or in the related class action against Coinbase, you do not have to take any action to submit a new claim. Your approved claim from the Cryptsy and/or Coinbase case will be reviewed, and you will receive an additional settlement payment.
If you did not make a claim in the first recovery against Cryptsy or in the Coinbase case, or if your claim(s) were denied, you can make a claim or supplement your previous claim(s). If you submit a valid claim, you may receive money from this additional recovery. Click Here to Submit a Claim Form online or click Here to download a Claim Form.
Important Dates
January 12, 2022 — Deadline to submit a Claim Form (must be submitted online by or postmarked by this date)
April 6, 2022 — Deficiency and Denial letters distributed
April 26, 2022 — Deadline to submit a Deficiency or Denial response (must be postmarked by this date)
| SUMMARY OF YOUR LEGAL RIGHTS AND OPTIONS WITH RESPECT TO THE RECOVERY IN THE LIU ACTION | |
|---|---|
DO NOTHING |
Get a payment. Class Members who submitted valid claims in the Cryptsy and/or Coinbase Settlements will not be required to submit another claim to receive a settlement payment in the Liu Action. Your prior claim will be reviewed, processed and paid here. |
DO NOTHING |
Get no payment. If your claim in the Cryptsy and/or Coinbase Settlement was not approved, and you did not receive a payment, and you choose to not submit another claim here, you will not receive a settlement payment in the Liu Action. If you did not submit a claim in the Cryptsy and Coinbase Settlements, and you choose to not submit another claim here, you will not receive a settlement payment in the Liu Action. |
SUBMIT A CLAIM FORM |
If you did not previously submit an approved claim in the Cryptsy and/or Coinbase Settlements, the only way to receive money from this recovery is to submit a claim by January 12, 2022. Click here to submit your Claim online or click here to download a Claim Form. |
Background
- On August 25, 2016, the Honorable Kenneth A. Marra of the United States District Court for the Southern District of Florida entered an order certifying in a class action lawsuit a class of Cryptsy account holders who were unable to access their cryptocurrency. That lawsuit is styled Leidel, et al. v. Project Investors, Inc. d/b/a CRYPTSY, Paul Vernon, and Lorie Ann Nettles, Case No. 9:16-cv-80060- MARRA (the “Cryptsy Case”).
- The Cryptsy Case was based on the unlawful conduct of Cryptsy and its founder, Paul Vernon (“Vernon”), including their theft of the cryptocurrencies from the Cryptsy account holders, who are known as the “Class.” Mr. Vernon closed Cryptsy, moved to China, refused to participate in the Cryptsy Case or return the cryptocurrency that he stole from Cryptsy account holders, and is not known to have returned to the United States.
- On April 24, 2016, the Court also appointed James D. Sallah to act as the Receiver in this matter. The Receiver took control of Cryptsy and worked with the lawyers for the plaintiffs in this class action to recover monies and assets for the Cryptsy account holders, which are part of the Settlements.
- Ultimately, Plaintiff and the Receiver obtained a settlement that secured and liquidated various assets in the total gross amount of more than $1,500,000.00 for purposes of making a first distribution to the class victims through a Court-approved class settlement and distribution process. The Court gave final approval to the Cryptsy Class Action Settlement on June 13, 2017. You can read about the completed Cryptsy Settlement at www.cryptsysettlement.com.
- Class Counsel subsequently pursued on behalf of the Cryptsy Class a class action lawsuit against another cryptocurrency exchange known as Coinbase and, through a negotiated settlement with Coinbase, recovered additional monies for the Cryptsy Class. That lawsuit was styled Leidel v. Coinbase, Inc., Case No. 9:16-cv-81992-MARRA (the “Coinbase Case”). Judge Marra approved the Coinbase Class Action Settlement. You can read about the completed Coinbase Settlement at www.coinbasesettlement.com.
- In the Cryptsy and Coinbase Settlements, the same plan of allocation was used, and each Class Member submitting a valid claim was allocated a pro rata share of the Net Settlement Fund based on their claim compared to the total number of valid claims. Each Class Member’s claim was based on the valuation of their respective cryptocurrency at Cryptsy as of November 1, 2015, which was the date Cryptsy shut down.
- No Class Member has received an amount equal to 100% of their losses when accounting for their combined respective distributions from the Cryptsy and Coinbase Settlements. While Plaintiff and the Receiver are pleased to distribute additional funds to the Class, such distributions, whether standing alone (i.e., for Class Members who make a claim for the first time) or in conjunction with prior distributions, very likely will not make any class member whole.
- Most recently, Class Counsel and the Receiver brought a claw-back action against Xiuxia Liu that successfully recovered for the class of Cryptsy victims an additional sum total of $874,391.24. That action is styled James D. Sallah, Esq., not individually, but solely in his capacity as the Court-appointed Receiver for Project Investors, Inc., d/b/a Cryptsy. v. Xiuxia Liu, U.S. Dist. Ct. - S.D. Fla. -- Case No. 9:20-cv-81041-MARRA (the “Liu Action”).
- Judge Marra is the presiding Judge in the Liu Action and entered an order authorizing the distribution of net amount of such monies obtained in the Liu Action (i.e., after the deduction of the costs of litigation, attorney’s fees, notice and administration) to the Cryptsy Class as part of the Cryptsy Case.
- Class Members who submitted valid claims in the Cryptsy Settlement were not required to submit claims in the Coinbase Settlement to receive a distribution, and Class Members whose claims were denied in the Cryptsy Settlement were afforded the opportunity to re-submit their claim and provide additional supporting material. The same rule will apply here.
- As in the Cryptsy and Coinbase Class Actions, Class Members who submitted valid claims in the Cryptsy and/or Coinbase Settlements will not be required to submit another claim to receive a settlement distribution from the Liu Action. If any Class Members who have not previously submitted a claim, or whose claim was previously denied, submit a valid claim here, such Class Members will receive a distribution from the funds recovered in the Liu Action so that all Class Members will receive the same pro rata distribution. All remaining funds will be distributed to the Class Members pro rata.
- If you are a Class Member and you did not make a claim in the Cryptsy and/or Coinbase Settlements, or if such claim was denied, you have a right to make a claim now in the Liu Action. Click here to submit your Claim online or click here to download a Claim Form.
- This is not a lawsuit against you. Your participation in this lawsuit or acceptance of money will not affect your employment status or compensation in any way.
- Please read the Notice carefully. The Notice explains your legal rights and options—and the deadlines to exercise them. Your legal rights will be affected whether you act or don’t act, and you have choices to make now.
To obtain more information about the claims and defenses in this lawsuit, you can view the complaint, the answer, and other court documents in this case on the Important Documents page of this website.