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

If you are a Cryptsy account holder and are unable to access your cryptocurrency, you may be entitled to compensation from these class action settlements, and your rights may be affected by the class action lawsuit that is currently pending against the remaining defendants.

The Cryptsy class action lawsuit alleges defendants Project Investors Inc. d/b/a 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 Cryptsy 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 that they have engaged in any wrongdoing and maintain they have not violated any laws. However, they have agreed to settle the Cryptsy class action lawsuit to avoid the burden and expense of ongoing litigation. These two 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 class action settlements.







The litigation against Cryptsy and Vernon is still 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 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 Cryptsy cryptocurrency settlement must do so no later than April 17, 2017. The deadline to object to the Cryptsy class action settlement is May 3, 2017.

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