An unfortunate hack incidence has sent Cryptopia into liquidation; the former cryptocurrency exchange was hit by a major hack in mid-January, has gone on to suspend its trading operations. Cryptopia’s assigned liquidator, professional services firm Grant Thornton New Zealand announced their liquidation which was later confirmed by Cryptopia news on Twitter and on its website as well.
These changes must have been in the works, as the Cryptopia website went under maintenance towards the middle of last week, without any message to the public on its social media platforms. A Redditor first noticed the inactivity on the website and asked whether the exchange had been hacked again. After the hack attack of millions of dollars in cryptocurrency, Cryptopia went offline for a couple of days. On reappearance online in mid-January, they then stated the exchange “suffered a security breach which resulted in significant losses.” The estimated loss according to a blockchain data analytics firm estimated after the attack that as much as $16 million in ether and ERC-20 tokens were lost. The exchange platform rebooted its operations in March which clearly didn’t last long due to certain banking issues.
Drawn from comments of Cryptopia’s assigned liquidator, the impact of the hack was huge. Getting the company past the loss, settling the stakeholders and to return to profitability could not be done despite efforts. This spawned the liquidation process which is seemingly the best path forward for all stakeholders. The liquidator described the impact as ‘severe’. According to the latest announcement, Grant Thornton personnel, David Ruscoe and Russell Moore will aid Cryptopia to secure its assets.
The liquidator added that “While this process and investigations take place, trading on the exchange is suspended,” and expressly stated that investigation will take months other weeks.
Customers have aired their comments and plights through twitter on Cryptopia’s tweet; some indicated the inability to withdraw funds since the hack, with some also calling for creditors to organize and take legal action against the exchange but till the further report is filed on the case investigations remain ongoing.
Ruscoe of Grant Thornton said:
“We realize Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders.”
The Liquidation when finalized should be almost sufficient if not exactly enough to simmer down comments and frustrations as the company is closed for good. Recurrences like this are never expected but are possible. This might be one of the biggest cons related to cryptocurrencies, ‘a hack’. Even more recently a popular crypto exchange Binance was also hacked with a loss to the tune of over 7000 bitcoins. It caused a little bit of a shakedown and may have tainted the image of a renowned platform. Cryptocurrency can only take precautionary measures against such possibilities to keep customers smiling and their businesses away from trouble.
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Credits- Yogita Khatri
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