This is Paul Vernon.
At 19, he joined the Army.
At 38, he ran the fastest-growing crypto exchange.
Today he's a FUGITIVE with $1 BILLION in stolen #Bitcoin | A thread 🔥
At 19, he joined the Army.
At 38, he ran the fastest-growing crypto exchange.
Today he's a FUGITIVE with $1 BILLION in stolen #Bitcoin | A thread 🔥
1/ Paul joined US Army Intelligence in 1994.
That’s where he met his wife – Lori Ann.
He was an entrepreneur, starting companies like OnTime Online, a web host, and DVD Barn, a Netflix rival 😆
That’s where he met his wife – Lori Ann.
He was an entrepreneur, starting companies like OnTime Online, a web host, and DVD Barn, a Netflix rival 😆
2/ Neither startup was a big success.
By 2010, Paul and Lori couldn’t afford their expensive lifestyle – they filed for bankruptcy.
In 2011, when the price was $10, he started mining #Bitcoin and altcoins like Litecoin and Feathercoin 😮
By 2010, Paul and Lori couldn’t afford their expensive lifestyle – they filed for bankruptcy.
In 2011, when the price was $10, he started mining #Bitcoin and altcoins like Litecoin and Feathercoin 😮
3/ That’s when Paul got an idea.
Back then, most exchanges only listed #Bitcoin. So he launched Cryptsy, an exchange for altcoins.
By 2014, it had 200,000 customers and listed 130 coins 😮
Back then, most exchanges only listed #Bitcoin. So he launched Cryptsy, an exchange for altcoins.
By 2014, it had 200,000 customers and listed 130 coins 😮
4/ 2014 was a MASSIVE year for Cryptsy.
Customers were making over 33,000 trades a day when the largest #Bitcoin exchange in the world COLLAPSED.
Users began flocking to Cryptsy 👏
Customers were making over 33,000 trades a day when the largest #Bitcoin exchange in the world COLLAPSED.
Users began flocking to Cryptsy 👏
5/ By mid-2014, Cryptsy was having problems.
Missing deposits, slow trades, negative balances.
Customers were starting to openly worry… 🤔
Missing deposits, slow trades, negative balances.
Customers were starting to openly worry… 🤔
6/ Soon, the outcry was so large – a team of podcasters set out to investigate Paul’s exchange.
He was visibility agitated by the accusations
He paced and scratched as he defended himself 🧐
He was visibility agitated by the accusations
He paced and scratched as he defended himself 🧐
7/ By October, at least 1 user went so far as to sue Cryptsy.
He claimed Paul had taken 140 #Bitcoin from his account – or about $70,000.
The case was resolved out of court in arbitration, but this was just the start of the issues.. 🤔
He claimed Paul had taken 140 #Bitcoin from his account – or about $70,000.
The case was resolved out of court in arbitration, but this was just the start of the issues.. 🤔
8/ In October 2014, rumors began to swirl that a major FEDERAL INVESTIGATION of Cryptsy was underway.
One website claimed the SEC, IRS, and FinCEN were involved
Paul denied the report… 😖
One website claimed the SEC, IRS, and FinCEN were involved
Paul denied the report… 😖
9/ There were continued problems at Cryptsy…
Paul tweeted about DDOS attacks and phishing attempts
Then, Cryptsy SUDDENLY SUSPENDED WITHDRAWALS ❗
Paul tweeted about DDOS attacks and phishing attempts
Then, Cryptsy SUDDENLY SUSPENDED WITHDRAWALS ❗
10/ Then, Cryptsy was "HACKED"
According to Paul, 13,000 #Bitcoin was stolen. He asked his customers for help.
He owed them over 10,000 BTC ‼️
According to Paul, 13,000 #Bitcoin was stolen. He asked his customers for help.
He owed them over 10,000 BTC ‼️
🛑 BITCOIN CUSTODY CHECK 🛑
11/ Next, Cryptsy’s users filed a CLASS ACTION.
They hired a law firm and held press conferences. But they couldn't find Paul.
He couldn’t be found at his HOME OR OFFICE 😠
They hired a law firm and held press conferences. But they couldn't find Paul.
He couldn’t be found at his HOME OR OFFICE 😠
12/ This is when things started getting REALLY weird…
His wife Lori Ann revealed that she and Paul had begun divorce proceedings.
She claimed Paul had fled to China with a mistress ‼️
His wife Lori Ann revealed that she and Paul had begun divorce proceedings.
She claimed Paul had fled to China with a mistress ‼️
13/ During the lawsuit, more unsavory details emerged…
Paul had sold over $3.3 MILLION in #Bitcoin on Coinbase…
He had used the BTC to buy mansions and luxury cars 😡
Paul had sold over $3.3 MILLION in #Bitcoin on Coinbase…
He had used the BTC to buy mansions and luxury cars 😡
14/ His wife Lori was sued as well
She had to surrender her home and diamond ring…
The court believed she helped Paul hide stolen Bitcoin 🤯
She had to surrender her home and diamond ring…
The court believed she helped Paul hide stolen Bitcoin 🤯
15/ Over the years, investigators clawed back funds.
But they found irregularities – specifically more than 11,000 #Bitcoin they believed was held by Paul
They believed he still had $200 MILLION in missing customer money ‼️
But they found irregularities – specifically more than 11,000 #Bitcoin they believed was held by Paul
They believed he still had $200 MILLION in missing customer money ‼️
16/ Over the years, people scoured the blockchain.
Then, they noticed something odd…
The stolen funds HAD STARTED MOVING ‼️‼️
Then, they noticed something odd…
The stolen funds HAD STARTED MOVING ‼️‼️
17/ SHOCKINGLY, Paul hasn’t been seen since 2014.
The DOJ is after him for defrauding Cryptsy customers
He’s a WANTED FUGITIVE ‼️‼️
The DOJ is after him for defrauding Cryptsy customers
He’s a WANTED FUGITIVE ‼️‼️
18/ Rumors continue to swirl…
There’s even one that Paul may have launched an exchange called BiteBi9.
It was founded by someone known only as Bao Luo – Chinese for “Paul.”
There’s even one that Paul may have launched an exchange called BiteBi9.
It was founded by someone known only as Bao Luo – Chinese for “Paul.”
19/ For now, the trail is cold.
What became of Paul Vernon and the 11,825 BTC worth over $1 BILLION?
We may never know ✨
What became of Paul Vernon and the 11,825 BTC worth over $1 BILLION?
We may never know ✨
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