Cryptopia opens up on hack; considers loss of 9.4% of its total holdings as the ‘worst case’

Cryptopia, the New Zealand-based cryptocurrency exchange platform that made headlines earlier this year has finally given an update on the hack and the potential loss incurred. The exchange also stated that they will be releasing more updates, today and tomorrow.

In January 2019, Cryptopia released a statement which said that the exchange had encountered a security breach, incurring a significant loss. This announcement spread like a wildfire across the cryptocurrency space, with a majority of the space speculating which tokens were stolen during the hack and the approximate amount involved.

It was also reported that the exchange was working with concerned government agencies, including the New Zealand police and the high-tech criminal unit. Furthermore, in a separate statement towards the end of January 2019, the Police claimed to have made “good progress” and that “positive lines of inquiry were being developed to identify where the cryptocurrencies have been sent.”

Interestingly, within days of the statement’s release, a report released by Elementus, a next-generation blockchain analysis company, stated that the exchange encountered a second security breach and that the hackers had control over the platform’s private keys including its customers’ details. This report led to a massive uproar in the community, especially among customers who neither had access to their accounts nor information regarding the safety of their tokens.

This was followed by the exchange giving an update to the community after a month. On February 14, the exchange stated that they regained access to their operating building and that in the meanwhile, the police would continue their investigation. They also added that the staff of the company had started evaluating the funds that were stolen.

Now, according to the latest update on its official Twitter handle, the exchange is expecting a loss of over 9.4% of its total holdings, claiming this to be the “worst case.” The update read,

“Update: We are continuing to work on assessing the impact incurred as a result of the hack in January. Currently, we have calculated that worst case 9.4% of our total holdings was stolen. Please keep an eye on our page for further updates today.”

The exchange also stated,

“Update: We are securing each wallet individually to ensure the exchange is fully secure when we resume trading. We have more updates to come today, please keep an eye on our page. Update: As a result of the new wallets please immediately refrain from depositing funds into old Cryptopia addresses. We have more updates to come tomorrow, keep an eye on our page.”

Prior to this announcement, the loss incurred by the exchange during its first hack was speculated to be around $16 million, with the compromised tokens noted to be Ethereum [ETH], the second largest cryptocurrency by market cap, and Ethereum-based ERC20 tokens. During the second hack, the report stated that the loss was around $180K worth of Ethereum, approximately 1,675 ETH.

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