Crypto Exchange Cryptopia Reveals Plans to Compensate Victims of January Hack

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology. The amount raised a few eyebrows as the number of crypto companies with substantial assets has grown substantially thinner after the collapse of the Terra stablecoin in May 2022. We will be emailing you again shortly with more details around the rebates and the projected dates for trading to be active again.

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The situation gets worse with Ethereum (ETH), which hasn’t been secured and faces a 100 percent haircut. Now, a couple of months following the attack, the exchange is attempting to get back on its feet. Wallet Address Collection will be launched for those qualifying and registered Bitcoin and Dogecoin holders in the coming weeks. If you are unsure whether a communication is an official communication from us, please raise a helpdesk ticket in Zendesk.

• All customers are advised to update their security information and enable 2FA as they prepare for the reopening of the platform.
• It could be that the exchange may have allowed some users to effect transactions for testing purposes as the exchange is still not yet available for trading.
• On the 14th of January 2019 we noticed several suspicious transactions and placed our site into maintenance to prevent additional funds from being compromised as best we could.
• This means that the courts will decide how customers and other stakeholders will be paid.

Crypto Exchange Cryptopia Reveals Plans to Compensate Victims of January Hack

Cryptopia aims to be a transparent and honest exchange, with the greatest customers in the world. At the time of this writing, there’s no further explanation provided regarding the reimbursement and the exchange has said there are more steps to take to guarantee its legality. Cryptopia resumed trading on 40 cryptocurrency trading pairs, all of which are quantified as ‘secure.’ A list of the supported pairs can be found here. On Nov. 10., 2022, FTX CEO Sam Bankman-Fried (SBF) announced that his crumbling crypto business was looking to raise around $8 billion in liquidity to help pay back customers. Cryptopia filed for bankruptcy protection and went into liquidation in May 2019 after a Jan. 2019 hack that saw 15% of client funds stolen.

• Cryptopia, the embattled New Zealand cryptocurrency exchange could be back in business by the end of this month.
• This was the first time since the event that we could begin to assess the impact.
• Grant Thornton said it would take some time for invitations to be sent to customers.

We will not send any communications relating to your claim from a different address. Any communications not sent from this email are not from us and may be scams. On the 14th of January 2019 we noticed several suspicious transactions and placed our site into maintenance to prevent additional funds from being compromised as best we could. We notified local and international law enforcement agencies of the matter and our offices were locked down and the site was only accessible to a very small number of staff and law enforcement agencies. As a result, many of our staff were sent home on full pay and our systems were inaccessible.

According to Dawson, his team is working on several areas to ensure that the exchange is back online and the victims of the January 14th hack are effectively compensated. With the announcement of distribution plans the Liquidators expect to see an increase in bad actors trying to interfere in the Cryptopia claims process. We must remind account holders to remain ever vigilant in regards to their security. After months of silence, compromised exchange Cryptopia has emailed its customer base with information about its January 14th breach, its current operational status, and its plan to compensate users who lost funds. Grant Thornton said it would take some time for invitations to be sent to customers.

All customers are advised to update their security information and enable 2FA as they prepare for the reopening of the platform. Cryptopia, the embattled New Zealand cryptocurrency exchange could be back in business by the end of this month. This is the latest update from the exchange co-founder Rob (Hex) Dawson.

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Regardless of the reassurances given by the exchange, concerns stem out of its recently released information page regarding the current status of securing their wallets. So far the exchange platform is still accessible to customers on read-only mode but it seems that some transactions were conducted today worth about 7 BTC ($28,000) albeit for a brief moment. In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated. Lastly, the only official communication from the liquidators will be sent from the no- email.

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The liquidator offered customers the option of contacting the Cryptopia customer support portal for inquiries. Additionally, in an email sent to impacted customers, the exchange revealed its plan for compensating their losses. On Nov. 11, 2022, FTX filed for Chapter 11 bankruptcy after failing to raise the required capital. This means that the courts will decide how customers and other stakeholders will be paid. Even as Cryptopia customers can start to breathe a little easier following a liquidation process that has taken almost two years, clients of a certain Bahamian exchange are only beginning their journey toward wholeness. On behalf of the leadership team and all staff at Cryptopia, we want to thank you for your unwavering support.

There are still steps to take to ensure we are taking a legal path toward reimbursement. CLM is not a coin and therefore transactions regarding CLM will not be available on the network. According to the update, the CLM represents the value of the tokens and coins lost during the hack on January 14th in $NZD. Since 2020, liquidator Grant Thornton has called on account holders to register and identify themselves. This is because Cryptopia stored customer funds in a pooled wallet rather than individual wallets.

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If you held balances in coins that were lost in the event you will start to see Withdraws on your account for those coins. The TXID for the withdraw will not exist on the network but will detail how the coin was impacted in the event. For each withdraw you will also see a subsequent deposit of Cryptopia Loss Marker(CLM), the TXID for this will also not exist on a network but will detail the coin it represents a loss for. CLM is not a coin, it can’t be traded as yet, it is just a number in the database that represents the loss for each coin for each user in $NZD at the time of the event.

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This support portal is separate from the claims portal and can be accessed by any account holder, provided they register and click the “Sign Up” button on the page. The email details that if a user has held a balance in coins which were cryptopia loss marker lost, they will start to see withdrawals on their accounts for the respective coins. Their transaction IDs, however, won’t exist on the network but will outline how the coin was impacted during the attack. New Zealand crypto exchange Cryptopia has announced the third phase of its reimbursement plan after a 2019 hack that saw customers lose over $15 million. It could be that the exchange may have allowed some users to effect transactions for testing purposes as the exchange is still not yet available for trading.

This was the first time since the event that we could begin to assess the impact. This however is quite labour and time heavy as we are effectively rebuilding our service from the ground up again. Since having access returned we have made significant steps to resuming service. According to that page, Bitcoin is currently 86 percent secured and will receive a ‘haircut’ of 14 percent. Litecoin (LTC), on the other hand, is supposedly going to get a 43 percent haircut.