Cryptsy, a cryptocurrency marketplace that was popular in the early days of cryptography, was on everyone’s tongue. It began with a bang — a digital marketplace that promised to usher in an era of trading alternative coins. It worked. It was Wild West for a time. Profits were made everywhere. At times, it felt like money was being printed. As with any party that roars loudly enough, the crash was just as spectacular. Get insights.

Cryptsy seemed to be filling a void on the market. Other cryptocurrencies had just begun to emerge as the Bitcoin market gained traction. The “altcoins”, as they are called, needed a trading platform where the average person could buy and sell. Enter Cryptsy. The platform was a barn door that opened wide. It listed a staggering amount of digital currencies. The platform was a magnet both for traders and investors.

It was a hit. You could trade hundreds of coins, some that were not even available on other platforms. It was like the supermarket of crypto trading. It seemed that Cryptsy worked like a charm. Early success stories circulated, such as those involving traders who turned a meager 100 dollars into thousands of dollars overnight. As long as you were smart or lucky, there was plenty of money to be had.

But beneath the surface of the glossy surface, there are darker currents. There were first whispers. Somebody couldn’t withdraw funds from this place. There, the balance of another’s wallet mysteriously disappeared. Hey, it was the Wild West! Risk was part of the game.

It turns out that the whispers were actually warning shots. Cryptsy shut down its operations abruptly in January 2016. Paul Vernon, also known as “Big Vern”, claimed that software bugs or hacks had siphoned millions of dollars worth of cryptocurrency. The users were left in the cold–their coins had disappeared, and their accounts were zeroed. The lawsuits grew like weeds and turned into a mass-action suit which attracted media attention.

The situation becomes murkier. Big Vern reportedly fled town to China. The lawsuits were unable to be served across the Pacific because no one could reach him. Cherry-picked revealed that he was secretly moving stolen money around to fill his own coffers, while users were left in poverty. Oh, what humanity!

The scandal rocked the cryptosphere. Once trust is lost, it’s hard to regain. Cryptsy was cloaked in lawsuits, which culminated in a settlement for a group of users. Lawyers clawed some money back, a few pennies per dollar, for the cheated users. The damage was already out of control.

Cryptsy’s legacy is a cautionary story. You’d better be able to think clearly before you dive into the crypto pool. Double-check and pay attention to whispers. After all, smoke is usually a sign of fire. As the saying goes, trust, but verify.

Cryptsy’s rise and subsequent fall teaches us a valuable lesson. In an industry that can see fortunes rise overnight, security is also susceptible to collapse. The pieces of a jigsaw are scattered all over the place, and the picture that you end up with is not always the one shown on the box. Buyer beware never rang truer. Keep an eye on things, tread with caution, and don’t place all your eggs into one basket.