- Cryptopia says it suffered a severe security breach that resulted in huge losses on January 14th
- The exchange claims it is now in maintenance mode to ascertain the level of damage
- Cryptopia says all relevant government authorities have been notified of the heist
Cryptopia, a New Zealand-based cryptocurrency exchange and trading venue has taken to Twitter to notify users of a serious hack that occurred on the platform on January 14, 2019.
Cryptopia, a New Zealand cryptocurrency exchange and trading venue that was launched in 2014 has confirmed it has fallen victim of a serious hack that has resulted in huge losses.
According to the Cryptopia team, the ugly incidence was identified on January 14, 2019, and the staff immediately put the platform in maintenance mode while the relevant government agencies, including the New Zealand Police and High Tech Crimes Unit, were promptly notified of the situation.
At press time, Cryptopia has made it clear that the exact amount of funds lost is yet to be ascertained, however, the matter is being investigated as a major crime by the nation’s authorities.
A recent Tweet by Cryptopia reads:
— Cryptopia Exchange (@Cryptopia_NZ) January 15, 2019
Although cryptocurrency exchange hacks and heists have become quite synonymous with exchanges and trading platforms, since the days of Mt.Gox down to the more recent Coincheck heist that enriched the rogue actors with half a billion dollars, it’s worth noting that users of Cryptopia have criticized the platform, with some accusing the firm of orchestrating an exit scam, while some others said the breach is as a result of their incompetence.
Roshan Kumar, a Twitter user, shared his displeasure on the hack:
Despite the harsh comments, the author thinks it’s improbable that the platform may have deliberately organized an exit scam considering the recent efforts of the team in making the project highly successful.
It’s worth highlighting that while sifting through Cryptopia’s wallet transactions, one can observe a transaction of 21,000 ETH ($2.5 million) withdrawal from the exchange to an unknown wallet. This transaction took place shortly after the actual hack, which could give a hint regarding the magnitude of theft orchestrated by attackers.
As reported by Blockchain Reporter on October 6, 2018, the platform hired Raj Washers, the former CMO at software giants, Microsoft, to function as its Sales and Marketing Director and the exchange also hinted it had seen impressive growth of more than 100 percent in its user base since its launch.
In related news, in November 2018, Blockchain Reporter informed that Cryptopia was looking to relaunch the New Zealand dollar-backed stablecoin in the first quarter of 2019 once they finished making the necessary arrangements with their new banking partners.