Cryptopia Fumbles Customers’ Stolen Crypto Recovery in Catastrophic F**kup
Hacked exchange Cryptopia continues its shambolic run of disastrous decisions. | Source: Shutterstock
The fall of Cryptopia
In January, Cryptopia got hacked two times. In the first case, the attacker stole approximately $16 million worth of Ethereum tokens from over 76,000 wallet addresses. At the second time, the losses were less significant; the hacker siphoned a total of 1,675 ETH.
PLEASE DO NOT SEND ANY DEPOSITS TO CRYPTOPIA.
— Cryptopia Exchange (@Cryptopia_NZ) May 16, 2019
While the operators of Cryptopia attempted to get their crypto exchange back on track, they failed, which resulted in the company being liquidated and filing for bankruptcy in the United States earlier this month.
Despite the liquidation the company’s in, CCN reported on May 21 that attackers had moved $125,000 worth of ETH to Etherdelta.
No access to data
As liquidators are trying to collect and (re)distribute the missing funds to victims affected by the hack, they have encountered another issue.
Instead of running a database of its own, Cryptopia has hired a third-party host in Arizona to store all of the company’s customer information.
Now the Arizona company is terminating Cryptopia’s agreement, demanding $2 million from the cryptocurrency exchange.
Until Cryptopia’s debts are paid, liquidators are unable to access the data they need to determine the digital assets their account holders hold with them also facing the risk of all data overwritten and lost.