For many users this information is difficult to retrieve due to the length of time that has passed since the exchange was shut down. In September, a previous Cryptopia client reported accidentally depositing bitcoin to an old Cryptopia deposit wallet. This led to a review of the Cryptopia wallets by Grant Thornton, which led to a discovery that 13 bitcoins had been withdrawn by an unauthorized party in a series of transactions. Some of the bitcoin had gone through a mixing service designed to hide the identity of the withdrawer.
- Claim acceptance- Provides account holders with the opportunity to agree that Cryptopia records represent the amount due.
- This token was then distributed to users who had suffered a loss as a result of the hack.
- In November 2020 Grant Thornton issued a warning to Cryptopia account holders after a New Zealand court mistakenly released Cryptopia customer data to an “unauthorised third party”.
- Everytime I read these updates, things become even more shady, My lost is not that big compare to others, but it’s significant to me, I lost 1 ltc, I would like to take back my coin a forget all about this exchange…
- We will be emailing you again shortly with more details around the rebates and the projected dates for trading to be active again.
I won’t dispute it either because they make a thinly veiled threat that I’ll have to reestablish who I am and go through all the BS I did to even get to this point.
Hacked Cryptopia Plans Compensation Scheme
Cryptopia, a once well-known exchange, suffered a brutal hack in mid-January. Blockchain researchers claimed that the Christchurch-based company lost upwards of $16 million in Ethereum, ERC-20 tokens, and an array of unnamed digital assets. As the firm attempted to cool the hot water it was standing it, company representatives kept their mouth shut. The decision was firstly driven by the fact that cryptocurrency is “property” for the purposes of the Companies Act 1993. And secondly, that the account holders’ cryptocurrency is held in a trust by Cryptopia on behalf of users. A separate trust exists for each type of cryptocurrency the exchange held.
When he caught wind through an inside source that the liquidators were reviewing the deposit wallets, Glaser decided to confess and offer the return of the stolen crypto. Court documents reveal that Glaser was motivated to carry out the theft because he was frustrated with his Cryptopia employers. He also believed he could get away with it as he thought no one would ever check the old deposit wallets. Grant Thornton also reports that they have received orders permitting them to convert NZ$5 million worth of DOGE (held by Cryptopia).
Yet, Cryptopia’s situation is all too cut and dried, as some users reported a loss in their exchange holdings. They call this a “haircut,” and it’s rather reminiscent of the Bitfinex hack of yesteryear. On 8th April 2020, the High Court of Christchurch issued a judgment stating that the liquidators estimated Cryptopia had cryptocurrency currently worth about NZD 170 million at the time of the hacks. Somewhere between nine and 14 percent of its cryptocurrency was stolen, according to the court document. The Report says that customers did not have individual wallets, and it would be impossible to determine individual ownership using just the cryptographic keys registered within the Cryptopia wallets. Cryptopia operated as a centralized exchange and customer trades occurred on the exchange’s internal ledger, without any confirmation on blockchains like Bitcoin or Ethereum.
Cryptopia Loss Marker (CLM) equivalent value in ETH?
Included in the outgoings was NZ$1.7M in fees to Grant Thornton, NZ$1.2M in legal fees, NZ$649,187 for server hosting, NZ$714,143 in salaries to Cryptopia employees and NZ$489,104 in GST payments to NZ’s Inland Revenue department. In September, Grant Thornton released information relating to a timeline for returning lost investor’s funds. The latest developments from reporting from New Zealand news site Stuff on February 18th that more cryptocurrency was stolen from a Cryptopia related wallet on February the 1st this year.
Cryptopia – Check your balance for CLM!
The Liquidator says it is continuing to build this team to assist users to complete the claims and asset transfer process. As of the report, Grant Thornton states that 82.3% of users have interacted with the claims process in some way. The percentage includes account holders who may have simply opened the email or clicked the email, but are not yet actively engaged in registering the claim. This ruling also gave Moore and Ruscoe the permission to begin the process of reconciling assets lost by Cryptopia. Before the ruling, there was a lack of clarity surrounding whether the digital assets residing in Cryptopia’s wallets were held in trust for account holders. The troubling news followed the December email from Grant Thornton to Cryptopia account holders inviting them to begin an account holder claims process.
Hex provided Cryptopia customers with data about the ongoing rebate process, as well as general recommendations for interacting with their accounts. In 2016, Bitfinex, then one of the world’s largest cryptocurrency exchanges, lost $72 million worth of BItcoin in a surprising hack. Like in Cryptopia’s cryptopia loss marker case, traders using the Hong Kong-headquartered platform took a “generalized” haircut, with this one being a platform-wide 36%. Bitfinex went on to establish a reimbursement token, BFX, before buying back the tokens at their $1 face value in the months that followed the August hack.
Cryptopia – a unique blockchain-driven metaverse game
Since having access returned we have made significant steps to resuming service. “You may have heard various comments about this event being an exit scam but rest assured we are 100% committed to reopening the exchange, bigger and better and to continue trading,” Dawson said. After two years of operating, Dawson and Clark both quit their jobs in order to run Cryptopia full time. The platform peaked in popularity following the 2017 market-wide bull run, when the value of Bitcoin (BTC) and other cryptographic assets skyrocketed. By 2018, Cryptopia had more than 80 staff members and a user base of ~1.4 million.
Cryptopia update – Claims process continues and ex-employee sentenced for theft
Because the claims process has involved 900,000 users from 183 different countries, the registration and support process has been drawn out. After months of silence, compromised exchange Cryptopia has emailed its customer base with information about its January 14th breach, its current operational status, and its plan to compensate users who lost funds. I have seen a few others reference this so far, but I have a CLM balance.
Stuff says $62,000 worth of the XSN cryptocurrency was removed from a wallet owned by US company Stakenet. On the 14th of January 2019 we noticed several suspicious transactions and placed our site into maintenance to prevent additional funds from being compromised as best we could. We notified local and international law enforcement agencies of the matter and our offices were locked down and the site was only accessible to a very small number of staff and law enforcement agencies. As a result, many of our staff were sent home on full pay and our systems were inaccessible.
Former Cryptopia employee, Michael Glaser, was sentenced to nine months of home detention for stealing over US$150,000 worth of cryptocurrencies, as well as customer data. Glaser pleaded guilty to charges of theft by a person in a special relationship, and theft of more than US$1000. Claim acceptance- Provides account holders with the opportunity to agree that Cryptopia records represent the amount due. Rise of Factions
Not everyone interpreted the new society the same way. Some believed Cryptopia was meant to create fantastic wealth, while others saw an opportunity to start fresh and save the environment. Still others believed that essential policies should be based on technology, while others argued they should be made with the people’s consensus.
What exactly is the conversion here for CLM?
According to the summary of facts from the case, while Glaser was an employee of Cryptopia he raised concerns about the security of private keys held by the exchange that gave access to the numerous digital asset wallets holding company funds. In the aftermath of the Cryptopia hack, the exchange had noted that they would not resume trading until they were sure that user balances were secure. Cryptopia relaunched its website in read-only form on March 5, with the platform showing the balances as they were at Jan. 14, 2019, the date of the $16 million hack. The exchange explained that the website can be used to reset passwords and two-factor authentication credentials, which is also a top priority issue in terms of client support at the current stage, Hex wrote.
The troubled New Zealand-based cryptocurrency exchange Cryptopia is reportedly working on a compensation scheme for users who have suffered losses as a result of a hack in January which cost users an estimated USD 23 million. The hack saw over 70,000 wallets compromised and over US$23 million in Ethereum (ETH) and ERC-20 tokens stolen. A second hack occurred on January 28th, where an additional US$284,000 from 17,000 wallets was captured. In May 2019 it was announced that the Christchurch based exchange had gone into liquidation. An investigative report by a local media outlet Stuff suggested that there were personal conflicts and tensions between the Cryptopia founding members and executive teams. Before stage 3 can begin, more users need to participate in stage 1, however.