Cryptopia customers will get a 100% haircut on their Ethereum [ETH] holdings

Cryptopia, the New-Zealand cryptocurrency exchange, was the talk of the town ever since it was compromised in the hacks of January 2019. However, for the past few days, the exchange has been making all possible efforts to re-open its services for customers, giving them all the latest updates on the turn of events.

Interestingly, despite progress on the relaunching of the platform front, a Twitter user has highlighted “haircuts” users of the platform will be receiving, based on information provided on the official website.

SpectreCat, a Twitterati said,

“Now we know that #Cryptopia users who held BTC, LTC and ETH will receive ‘haircuts’. BTC – 14% ; LTC – 43% ; ETH – 100%. All other coins they have secured so far seem unaffected, but there are still many more to go”

The users further stated,

“Let’s just hope these haircuts are only referring to hot wallet balances”

The status pertaining to Ethereum on the official platform read that the currency secured was 0%, and that the ‘haircut processed’ was 100%. Additionally, it was also stated that deposit and withdrawals services for all major coins such as Bitcoin, Ethereum and Litecoin will go online once new hot wallets have been created. Further, the platform did not mention any details about compensation with respect to token loss.

Source: Twitter

Source: Twitter

Source: Twitter

Source: Twitter

Source: Twitter

Source: Twitter

Source: Reddit

Source: Reddit

In January, Harold had stated on Investinblockchain,

“They could haircut everyone based on deposits. And tell whoever had coins in the exchange that they’ll only receive 10 cents on the $1 (or similar). That’s a possibility. Mt Gox suffered a similar demise and haircuts are a way to spread the losses across all depositors. If they don’t do that, they can just force full losses on anyone with ETH / ERC20 deposits. Either way, Cryptopia is rekt.”

After their past update, the platform had stated that the worst case scenario would be a loss of over 9% of its total holdings. But, details on the tokens that were lost because of the hack were not released by the platform. A report by Elementus stated that the exchange lost around $16 million worth of Ethereum and ERC20 tokens, and that these funds were taken from over 76k different wallets, during its initial hack.

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