Business

Steve Kaaru

Another blow to Cryptopia users as exchange is unlikely to reopen

Cryptopia users have had to go through months of agony ever since hackers attacked the exchange in January. And it’s not about to come to an end anytime soon. According to an update by the New Zealand exchange, its customers will have to wait until an investigation into the hack is completed. By Cryptopia’s own admission, this could take several months.

Cryptopia posted the update on its site, answering some of the most common questions that its clients have been asking. They include when the customers get their cryptos back. Not any time soon, the exchange informed its former clients.

According to the exchange, “We are now undertaking an extensive process to confirm amounts owing and available to return to customers. This is a complex process and will likely require direction from the New Zealand Courts. Until the investigation has concluded we cannot return any crypto-assets to customers.”

The exchange urged its users not to deposit any cryptos at the time being. It even posted this message on its Twitter page, an indication that there are those who, despite all that has happened, continue to have faith in the exchange.

The exchange also repeatedly informed its customers that it would not give any further details before the investigation is concluded. This includes information on whether the crypto assets would be returned to their owners upon conclusion of the investigation.

The suspension of all activities on the exchange affected even those clients whose accounts weren’t hacked in January. The exchange explained:

“While the hack earlier this year contributed to the issues which led to the liquidation, the current halt to trading affects the entire Cryptopia exchange. Until the investigation is complete, we cannot return any crypto-assets to customers, or confirm whether individual customers will get all of their crypto-assets returned.”

Many of the former customers haven’t taken the entire debacle very well, accusing the exchange of covering up some of the details pertaining to the hack. There are others who have accused the exchange of perpetrating an internal hack.

The exchange was hacked in January, and yet, four months later, the customers know as little about the hack as they did back then. The management has been cagey with the information, only revealing in February that the hackers only managed to steal 9.4% of the total holdings. Despite allegedly having 90% of the customer assets, Cryptopia has yet to inform its over 1.4 million customers of when they can get their crypto assets back.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

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