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Cryptopia Loses Over 2.5 Million Dollars in Hack

Maya Mandzikasvili | Jan. 15, 2019
Cryptopia Loses Over 2.5 Million Dollars in Hack

January 15, 2019 | AtoZ Markets -  According to the latest news, the New Zealand cryptocurrency exchange Cryptopia has been hacked. The company's team confirmed the security breach, noting that the losses are “significant”.

Brief History of Cryptopia

Cryptopia is a New Zealand-based exchange that enables to buy and sell cryptocurrencies. It was launched in 2014 by Adam Clark and Rob Dawson and registered and fully compliant with the local regulations. Cryptopia has over 550 cryptocurrencies listed on its platform, as opposed to the norm of 200. It is a peer-to-peer exchange, which means that transactions made via Cryptopia do not go through the exchange and user is purchasing crypto directly from other users. Also this exchange enables options for users to buy and sell using cryptocurrency.

Cryptopia has its own token called NZDT which is tethered to the New Zealand dollar, like USDT is tethered to the US dollar.

What is happening with Cryptopia at the moment?

At the moment, the message on Cryptopia website states that the exchange is currently in unscheduled maintenance mode. The company promises to “be back soon”, apologizes for any inconveniences and ensures its clients that they are working to resume services as quickly as possible.

When trying to access the Cryptopia site, users see the following message:

After the recent security breach incident, the announcement was also posted on the official exchange Twitter account. In the company statement was noted that the losses were significant. The company apologized for the late update and thank you for your patience. Reported security bug at Cryptopia Exchange happened on January 14, 2019. After the discovery of hacking by employees, the exchange was put into operation and the damage was assessed.

The announcement did not indicate the amount of damage, the company just noted that it is "significant." As was reported the ETH transaction on the Cryptopia took place 43 hours ago, as a result of which 19,390 ETH left a Cryptopia wallet and moved to an unknown address. The cost of the transferred ETH is over 2.5 million dollars.

First exchange Hacked in 2019?

It is worth noting that the first Cryptopia tweet regarding hack incident appeared two days ago on January 13th.

The company explained that unplanned maintenance is currently taking place and that they are working to resume service as soon as possible. The exchange shared in its message that it will "keep users informed." Cryptopia is the first exchange of cryptocurrencies, hacked in 2019.

The cryptocurrency community quickly took this into account, since the popular Bitcoin supporter @WhalePanda noted that the exchange had become rather irrelevant. He also said that the attack occurred during a bear market, where small exchanges are trying to keep afloat, hinting that the possibility of internal work cannot be ruled out. The news of the security breach in Cryptopia, did not affect the market however. At the same time, the exchange team made it clear that the relevant government agencies, the New Zealand Police and the High-Tech Crime Section were informed and are working together to investigate this issue.

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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.