Cryptocurrency Exchange

Crypto Exchange Cryptopia Hints at Customer Rebate Plan

Cryptopia seems to be working on a compensation scheme for users who suffered losses because of a January hack that cost users an estimated USD 23 million.

After being hacked twice in January, the New Zealand – based cryptocurrency exchange Cryptopia worked to get back on its feet. To maintain transparency, a CoinInfo page was created by the exchange to check the coin status.

Most of the top 10 cryptocurrencies have not been checked yet, according to information presented by the CoinInfo page. This list includes such tokens as Bitcoin [ BTC ], Ethereum [ ETH ], Litecoin [ LTC ], EOS, Bitcoin Cash [ BCH ], and Tron [ TRX ]. The exchange does not include XRP, Binance Coin [ BNB ] and Stellar Lumens [ XLM ]. The offline tokens listed, however, have ‘ Active ‘ listing status.

In an update, co-founder Rob Dawson said that there will be a refund for customers who unfortunately lost money. He went on to add, “Some comment on the event is an exit scam, but be assured that we are 100% committed to reopening and trading.”

Recently, Cryptopia published new website information on Twitter. The tweet says “Offline” means the coins were still not checked. “In Maintenance” means the securing of the coins. They will also inform you of the impact on these coins of the event.

Since these coins have not been analyzed, the impact of the hack on these coins is not clear. Cryptopia also informed users that 35% of the coins in new wallets had been secured. The company will also need to ensure that the listed coins are secured. Simultaneously, users were able to access the exchange and cancel old orders.

At present, the company is trying to restart the platform and collect the funds lost by users. To do this, the company has worked with local authorities and law enforcement agencies to track the movement of funds.

Several attacks have been made on cryptocurrency exchanges. Hackers generally consider them to be very good targets since many virtual currencies could be stolen in an attack.

A similar scheme has also been executed to compensate users for the large Bitfinex crypto exchange based in Hong Kong after the 2016 hack. Bitfinex will then develop a new token known as BFXCoin with a face value of 1 BFX per lost $ 1. This token was then provided to users who suffered a hack loss. All BFXCoin holders have been able to redeem their tokens at this rate within eight months.

Reportedly, the website of Cryptopia is currently in read-only mode. It displays balances as of January 14, 2019. Also, users’ ability to take back their standing orders is now alive as well. The exchange also informed its users that “as a result of the new wallets, please refrain immediately from depositing funds in old Cryptopia addresses.” Earlier, Elementus, a blockchain firm revealed that Cryptopia does not possess the private keys to its Ethereum wallets while the hacker does have.

Edward Nash

Edward Nash is an editor and analyst with over 10 years of financial market experience. Prior to joining CoinNewsSpan, he worked in several famous financial institutions. He has been active in the cryptocurrency market since 2011, specializing in technical analysis of current crypto trends and offering analytical opinion-based pieces.

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