The notorious crypto scammer behind the Cryptsy and Altilly exit scams has resurfaced under a new identity. This time, he operated as “Karl” from Xeggex, another fraudulent exchange that has now collapsed. Thanks to the efforts of the crypto community, he appears to have finally been tracked down—despite the FBI and U.S. authorities failing to bring him to justice.
- Who Is He?
Paul Vernon, also known as "Michael O’Sullivan" or Karl, has a long history of crypto fraud:
- Cryptsy (2016) – Feds: Cryptsy Founder Stole Millions in Users' Cryptocurrency
Federal authorities report that Paul Vernon orchestrated a "sophisticated theft scheme" between 2013 and 2015. Stole over $9M before fleeing to China. (The estimated total of misappropriated crypto has now surpassed $1billion.) - Altilly (2020) – Orchestrated a fake exchange hack, stealing $3.3M+.
- Xeggex (2022–2024) – Followed the same pattern before shutting down.
What Happened with Xeggex?
Xeggex started as a seemingly legitimate exchange, offering free listings to attract users. However, things took a turn when:
- The platform claimed a Telegram hack.
- Then reported database corruption.
- Finally, announced missing funds, with all major assets gone.
Now, Vernon is erasing traces of himself.
BREAKING: We Found Him
Investigators have located his mansion in Dalian, China. He is reportedly using fake passports from Ecuador and Vanuatu under the name Michael O’Sullivan. The FBI and U.S. Marshals have been informed, and discussions with U.S. authorities are underway.
🔗 Full Investigation & Evidence (Live Updates):
👉 Click here
How You Can Help
- If you lost funds, track Xeggex wallets and report them to major exchanges.
- Share this with crypto communities to warn others.
- If you have law enforcement or journalist contacts, help bring attention to this case.
The fight against crypto fraud continues—let’s make sure Vernon doesn’t escape justice again. This time we cannot let him escape and continue the cycle of fraud and theft without punishment, destroying the lives of many people.
All but one of the 17 charges against Vernon carry maximum prison sentences of 20 years, according to the indictment, which has been embedded at the end of this article.
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