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Cryptopia: the Thrill and the Agony

Cryptopia, a New Zealand-based cryptocurrency exchange, has reopened its doors after several months of uncertainty caused by a hack early this year.

On January 14, 2019, users were informed that the exchange had gone through an unscheduled maintenance.

Several hours went by with no clear answers and customers that were getting desperate to know what was going on started questioning the validity of the “unscheduled maintenance.”

24 hours after the incident, Cryptopia dropped the news that it had “suffered a security breach which resulted in significant losses.”

On January 16, 2019, the cryptocurrency exchange asked its users to keep and eye on the report of the ongoing investigation led by the New Zealand police to be updated on the matter, but kept a secret how much of the funds had been stolen.

As rumors were spreading that all funds had been stolen from the platform, Elementus, a blockchain search engine and analysis firm, reported on January 20, 2019, that as much as $16 million worth of Ethereum (ETH) and ERC20 tokens were wiped out. During the following two weeks after the attack, hackers still had control of Cryptopia’s wallets and were able to extract another 1,675 ETH.

By February 4, 2019, Elementus outlined that the perpetrators had liquidated around $3.2 million of the stolen tokens in different exchanges, such as Binance, Etherdelta, and Huobi.

It wasn’t until February 27, 2019 that the cryptocurrency exchange communicated to its customers via Twitter that 9.4% of their holdings had been stolen.

On March 5, 2019, Cryptopia relaunched its website as read-only, showing the balances as they were before the hack. The exchange explained that the website should be used to reset passwords and two-factor authentication credentials as a way to reinforce users’ security.

After two months since the security breach happened, they resumed trading on 40 pairs that have been quantified as secure, and slowly started adding volume back to the exchange.

By April 4, 2019, the platform tweeted that half of all tokens listed had been secured, signaling a possible re-opening of their business.

Four months have passed since $20 million were taken off Cryptopia’s wallets, and finally the exchange announced that it will be opening deposits and withdrawals of some of the major digital assets.

The enthusiasm among the exchange’s users couldn’t be held and positive comments started pouring in.

Cryptopia has been slowly coming back online as volume continues to increase after the announcement. For months, it has been strengthening its security and now the platform plans to get back in the game and fully resume its operations.  

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ETH: 0xDf4d2529D777a80717E85Ed2269830ad6265951B
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Señor Satoshi
Señor Satoshi
Señor Satoshi began forex trading in 2012 to become financially independent and travel the world while working on his own. In 2014, he came across Bitcoin’s white paper written by Satoshi Nakamoto. He was so fascinated by the idea of a decentralized, borderless, and censorship resistant currency that he started buying Bitcoin at the time. By 2015, with some of the earnings generated in forex trading he started traveling the world spreading the word about Bitcoin everywhere he went. The Bull Market that the cryptocurrency market experienced in 2017 got Señor Satoshi’s attention out of the forex market and since then he’s been dedicated to trading cryptocurrencies.


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