The formerly notorious Cryptsy exchange operator Paul Vernon has apparently launched a new trading platform operating from mainland China, a representative of the new site has disclosed. While that
The formerly notorious Cryptsy exchange operator Paul Vernon has apparently launched a new trading platform operating from mainland China, a representative of the new site has disclosed. While that same spokesperson denies Vernon's current involvement, available evidence points in a different direction.
The platform in question, BiteBi9, initially resembled Cryptsy's interface quite closely. A developer who previously worked for Cryptsy acknowledged contributing to the new site's development, though declined to confirm or refute whether Cryptsy held any ownership stake. Domain registration used an email address from the @projectinvestors.com domain—an organization Vernon founded and continues to control as its chief executive. The registration occurred in Dalian, a city in Liaoning province, matching locations where observers had tracked Vernon's recent whereabouts.
Users who submitted early support requests to BiteBi9 reported receiving responses that duplicated language from Cryptsy's support correspondence, utilizing identical server addresses to messages Cryptsy had sent previously during that period. We've verified DKIM-signed documentation supporting this connection, though we're withholding it to protect our source. Following the revelation of these details across the Bitcointalk forum community, the domain's registration details got updated, though some records continue displaying prior information. The swift timing of this modification, immediately succeeding the public disclosure, raises questions.
Marshall Long, who directs Final Hash and previously maintained various partnerships with Cryptsy, discussed the expansion during remarks to Trace Mayer. He described finalizing "contracts to establish a sizable trading venue to China. That platform is Cryptsy, functioning to reach an underserved demographic—over a billion inhabitants seeking what we're providing."
Certain content appears identical across both platforms. Word-for-word duplication exists in BiteBi9's altcoin promotion section mirroring Cryptsy's original feature. Comparable duplication affects product descriptions and portions of underlying programming architecture.
Registration paperwork names "Bao Luo Technology Company Ltd." as the proprietor. In Chinese romanization, "Bao Luo" corresponds to the Western name Paul. Government business records for this entity indicate commencement of operations on July 28, 2015. Notably, during that same month, the Cryptsy cold storage facility transferred 350 BTC to BTCC through separate transactions, likely for conversion into Chinese currency. Cryptsy maintained a 100 BTC maximum withdrawal threshold, rendering this transaction impossible without privileged system access.
Sixteen days following this transfer, Bao Luo Dalian Technology Company received its official registration at a cost of 300,000 Yuan—approximately $46,000. Bitcoin's value experienced substantial swings between $230 and $310 during this timeframe, meaning the transferred amount represented $80,500 to $108,500, or roughly 520,550 to 701,620 Yuan in equivalent value—adequate financing for constructing and launching a trading operation.
Documentation from Cryptsy team members referenced work on a Chinese trading platform. The registry materials reference "Paul [Bao Luo] Dalian Technology Co., Ltd," headquartered in Dalian and registered under the name "Liu Xiuxia," identified as a citizen of China.
Court filings connected to Vernon's marital dissolution disclosed his involvement with enterprises based in China, along with an extramarital relationship with a resident there. His former spouse petitioned authorities to confiscate his travel documents, expressing anxiety that he might depart the nation. Later court orders, previously detailed by CoinDesk, documented the freezing of Vernon's Florida-based holdings. These judicial documents indicate process servers encountered difficulty locating Vernon for service of legal notice—potentially suggesting uncertainty regarding his current residence.
While Vernon might theoretically have developed the platform specifically for Chinese clients before transferring operational control, the cumulative evidence suggests a contrasting narrative. Long's public statements position Cryptsy's expansion into that market. The business registration documentation identifies the entity's originator. Testimony during matrimonial proceedings and subsequent legal motions regarding asset forfeiture. The cryptographic movements from Cryptsy's accounts toward BTCC. The geographic convergence between the registration location and prior sightings of Vernon all converge toward the same conclusion: Cryptsy and BiteBi9 maintain substantially deeper institutional connections than a straightforward market entry would imply.
When asked for comments, BiteBi9 responded in Chinese: "The proprietor will present updated information regarding our operations, and additional detail concerning true ownership shall be made accessible on our platform shortly. Paul Vernon functioned in the establishment phase but does not retain current proprietorship. He contributed to the organization and founding process. Chen Le. BiteBi9.com"
This translation indicates Vernon played a role in constructing the venue but relinquishes contemporary operational authority. According to the Chinese registration materials, "Liu Xiuxia" appears registered as proprietor of Paul [Bao Luo] Dalian Technologies—identical to the organization registered shortly after the Cryptsy transfer and using Vernon's corporate email for BiteBi9's domain sign-up.
The original Cryptsy exchange achieved prominence as among the world's largest digital currency and alternative coin marketplaces before shuttering operations. Officials maintained that attackers had absconded with 13,000 bitcoins and 300,000 litecoins. However, skepticism surrounded these assertions, as subsequent wallet depletions involving other cryptocurrencies alongside accounts contradicting the official narrative subsequently emerged. An investigative article from the defunct Coinfire publication triggered customer panic, disclosing that federal authorities had initiated inquiry into the exchange's operations.
Vernon appears to be maintaining activity rather than maintaining discretion. China's massive population of 1.3 billion inhabitants offers concealment potential for any foreign national. Nevertheless, the jurisdiction operates according to stringent principles. A solitary individual possessing adequate institutional connections might mobilize governmental apparatus with devastating effectiveness. That scenario could yield American extradition proceedings or substantially more severe consequences within Chinese jurisdiction. Alternatively, his apparent winning streak in misappropriating cryptocurrency assets might extend further.
Numerous online investigators contributed significantly to uncovering these particulars. Recognition belongs to the bitcointalk.org community for their diligent analytical work.
