Cryptsy statement clears up the Reddcoin situation after 51% attempt

Cryptsy staff-member, Mullick, took to Reddit yesterday and issued a statement to clear up any confusion about the situation with Reddcoin on Cryptsy.

The clarifications were needed after somebody had attempted to carry out a 51% attack on Reddcoin via the Cryptsy exchange — selling Reddcoin for Bitcoin, then reversing the original Reddcoin deposit.

The post reads:

As many of you may know. Cryptsy was the target of a 51% attack against RDD. The attacker would deposit funds. Sell for BTC and initiate a withdrawal for the BTC. Then reverse his original deposit. If not for our security the attacker would have been successful.

We have been in buisness for over a year now and this is not the first time it has been attempted. We have a security system in place to prevent these sort of attacks. The attacker never received his BTC and that BTC was used to buy back all the RDD they dumped on the market.

Another attack was also attempted, which led to some issues with users’ withdrawals. Cryptsy says this was also unsuccessful, and that withdrawals are now functioning as intended once more.

To prevent the 51% attack in the future, all Reddcoin deposits to Cryptsy will require 499 confirmations before the funds are available to trade. This limit will remain active until Reddcoin switches to its new PoSV algorithm in the future.

Source: Reddit