Cryptopia Estimates Less Than 10 Percent Of Crypto Was Stolen In Hack


New Zealand-based cryptocurrency exchange Cryptopia, which was hacked earlier this year, has announced that it will re-open on March 4, but only “as read-only” platform.

The exchange also confirmed that co-founders Adam Clark and Rob Dawson had taken their positions at the company, with the focus now on finding “a clear strategic direction” that should see it move forward.

Notably, however, is that Cryptopia has finally provided an update of just how much was lost when the hackers stole thousands of crypto from the exchange.

That update came as part of a series the exchange gave after going silent for almost two months since the January breach.

Although it did not provide monetary estimates of the stolen crypto, the Cryptopia team noted that it was roughly less than ten percent. It also said that the platform is in the process of assessing the impact of the hack, adding that:

“Currently, we have calculated that worst case 9.4% of our total holdings was stolen.”

The cyber-attack on Cryptopia was acknowledged on January 15 after the exchange tweeted that it had suffered significant losses due to a security breach.

The platform then went offline, not providing any further details and asking its users to wait for a comprehensive report after an investigation by the New Zealand police had concluded.

Several reports, however, indicated that the firm might have lost millions worth of crypto in the attack, with one blockchain data analytics startup estimating that the exchange might have lost almost $16 million in Ethereum (ETH) as well as thousands of ERC-20 tokens.

Also disturbingly were reports that the alleged hackers continued to control Cryptopia wallets days after the hack and long after the country’s police had launched a probe into the breach. Allegedly, the hackers were able to access 17,000 wallets, stealing a further 1,675 ether worth nearly $180k at the time.

The exchange tweeted on Wednesday that it was currently “securing each wallet individually,” with the aim of ensuring that each was “fully secure” before trading resumes.

Apart from securing the wallets, the firm has asked users to expect more updates in coming days. Importantly, however, the crypto exchange has warned its users to take note of the new wallets thus avoid “depositing funds into old Cryptopia addresses.”

On February 7, New Zealand Police announced that they had made progress in their investigation and that it would complete its inspection of Cryptopia’s headquarters in a week.

On February 14, the exchange did confirm that it had been handed access to the premises, even though investigations were still ongoing.

At the time, Greg Murton, a detective with the New Zealand police department, had noted that the probe was moving in the right direction. He added that authorities’ focus was on identifying those behind the theft and on retrieving the stolen crypto.

Murton also noted that investigations into the breach and theft would take a lot more time given “the complexity of the cyber environment.”

However, with Cryptopia’s latest tweet that its operations could resume in early March, it appears the case is moving towards providing some of the answers the exchange’s users need.

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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