$8.2 Million: Court Orders Default Judgment Against Cryptsy CEO

David Silver Quote :

This order is a big step in the path towards vindication and justice for our clients in the cryptocurrency world who were taken advantage of by an exchange operator they trusted with their hard-earned funds.

A U.S. judge has ordered that the chief executive of the now-defunct cryptocurrency exchange Cryptsy must pay $8.2 million in damages to its customers.

U.S. District Judge Kenneth Marra handed down the order in the long-running class action lawsuit against the Florida-based cryptocurrency exchange that collapsed in January 2016 after months of growing complaints from customers. The class-action lawsuit was filed shortly afterwards, with the court ultimately moving to place Cryptsy into receivership the following April.

According to Marra's July 27 court order, Cryptsy CEO Paul Vernon – who has denied stealing user funds – "is liable to the Plaintiff Class in the principal sum of $8,200,000, for which let execution issue forthwith."

Vernon, who is believed to be currently residing somewhere in Asia, did not respond to the allegations in court, a circumstance which led to this week's default judgment.

The order notably states that the more than 11,000 bitcoins taken from the exchange by Vernon are owed to the customers.

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