Cryptopia Hack Update: “Worst Case 9.4% of Our Total Holdings Was Stolen”

Cryptopia, the New Zealand-based cryptocurrency exchange that suffered the largest known hack of 2019 back in January, has finally released an update as to how many funds have potentially been lost. Per the update, Cryptopia has calculated that in a worst-case scenario, 9.4% of their total holdings were lost to the hackers.

Until now, the exchange has not provided any updates regarding the number of stolen funds. They have been working closely with New Zealand police and a high-tech crime unit, and were thus unable to comment on any details regarding the investigation.

However, as previously reported by IIB, the blockchain analysis firm Elementus thoroughly analyzed the Ethereum public blockchain and revealed that a total of $16 million worth of Ethereum (ETH) and ERC-20 tokens had been stolen during the initial hack.

The same firm later revealed that an additional $180,000 worth of Ethereum was siphoned from 17,000 Cryptopia wallets in the weeks following the initial attack.

As Elementus initially suspected, the hackers gained full control over Cryptopia’s private keys and were able to continuously withdraw funds as unsuspecting Cryptopia users topped up their wallets.

Cryptopia Finally Providing Updates

While the updates from Elementus were very informative, it’s nice to know that Cryptopia is now able to comment on the investigation and share official updates with those affected.

Following their initial recent update about the percentage of stolen funds, Cryptopia notified users via Twitter that they are securing each wallet individually to ensure the exchange is secure when they begin trading:

Following this last update, the exchange urged users to refrain from depositing funds into their old Cryptopia addresses, as they have been compromised and will not be recovered.

Cryptopia will be releasing further updates via Twitter over the coming days and users are urged to keep an eye on their page.

Would you trade with Cryptopia once their exchange goes live again? Will the exchange reimburse users who last funds in the hack? Let us know what you think in the comment section below.

2 Comments

  • DJ
    Posted February 28, 2019 5:56 am 0Likes

    Have had problems with Cryptopia in the past.
    My account was hacked and they claimed they were not responsible even though none of my other accounts or passwords were compromised.

    I created another account to repurchase the coins lost and then took the tokens i could off the exchange immediately!

    That is the only way I would advise anyone to use that exchange in the future. Buy what you want and get it off exchange immediately!

    Will never trust Cryptopia again.

  • DigitalMarketXchange
    Posted February 28, 2019 10:16 pm 0Likes

    Banks get hacked, emails get hacked it happens. Their communication could have been a whole let better but perhaps they were limited due to the Police investigation.

    If they can come back from this then they can possibly spin this into a positive….it’s not how you fall but how you rise.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.