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Cryptopia Undergoes Another Security Breach

Maya Mandzikasvili | Jan. 31, 2019
Cryptopia Undergoes Another Security Breach

January 31, 2019 | AtoZ Markets -The first weeks of the new 2019 year were quietly complicated for certain exchanges and the blockchain projects such as Ethereum Classic and Cryptopia. The latter experienced a security breach two weeks ago, what resulted in significant financial damages, as the New Zealand exchanges representatives informed. Seems that Cryptopia cybersecurity tragedy has not passed yet.

Сryptopia has not recovered yet after recent hack

Many blockchain experts were hoping that the tragedy of Cryptopia had passed after the recent hack which cost the company several million dollars. However, a recent report from Blockchain’s data analytics firm Elementus revealed that the New Zealand exchange has not fully recovered from a recent security breach incident.

A report published by the company showed that Cryptopia hacking is not an isolated event, but a continuous attack and hackers regained control of the Cryptopia, withdrawing funds from about 17,000 wallets.

Funds were stolen by the same hacker as a year ago

The research group Elementus noted that they initially suspected that such a volume of transactions could have been on the part of Cryptopia, which sought to transfer funds to a new wallet that was not controlled by hackers. Nevertheless, since the hours had passed, it became obvious that the situation “was not all positive”, as the blockchain analytics company experts added.

Representatives of Elementus explained that from the beginning it seemed that Cryptopia was trying to save its funds. But by 9:50 pm it became apparent that the same hacker who hacked the platform last January was the cause of the incident. To this conclusion, the company Elementus came after the funds were transferred to one of the wallets used in the previous series of violations.

As the cybersecurity experts assume, the stolen funds were mostly mined tokens deposited directly to exchange from different pools. This explains why, despite the attacks, the addresses of the hacked wallet kept a constant flow of tokens.

Cryptopia remains silent about last incident

The hacked exchange team did not comment on the incident. The company did not confirm and did not deny the new incident. The exchange has remained silent on social networks since January 16, inviting the public to follow the New Zealand Police page for more information. As was previously reported, on January 15, Cryptopia was subjected to a hacker attack, as a result of which more than $ 16 million worth of Ethereum and other ERC20 tokens were stolen. A few days after the attack, the hacker attempted to deposit some of these funds into Binance, but the exchange froze them.

Right now, Cryptopia is under maintenance. The cryptocurrency exchange reported trading volumes of more than $ 1.8 million prior to the incident, which led to the temporary suspension of all services

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.