Bitcoin Forum

Cryptopia got hacked and lost like 8% of their assets.

They give haircuts to everyone.

I noticed something unusual. Instead of taking coins that are stolen they charge bitcoins and LTC from everyone.

Then there is another thing that's also unusual. They use the January price instead of the time they do the haircut.

At that time bitcoin and litecoin price have gone up twice.

I think cryptopia want to do it again.

They "Liquidate".

And then they will give back NZD.

When bitcoin prices go up they will just select any crypto with huge valuation and pay NZD

They basically gamble with customers' money.

If bitcoin drops they can just return bitcoins or nothing.

If bitcoins go up they return NZD and keep the price different.

Is this even legal?

Anyone familiar with bankcruptcy laws in New Zealand?

This is just another reason why the laws cannot protect us. I was stupid not to take money away from them.

Seems to be fraud in local laws unless NZ follows a certain standard regarding bankruptcy. That shouldn't be legal in any way considering that their customers used BTC, they should get BTC or any other tokens that their customers were holding at the time. Regardless, as long as Cryptopia paid customers, be it NZD or crypto, the NZ government would treat the case as solved, unless customers filed a petition to reopen the case for unjust rulings.

I wonder if the case can be reopened once the liquidation is over unless they got a big customer who has the resources to fight it in the court. The Cryptopia saga is one of the many sad stories we have in cryptocurrency. Seems it is hard to swallow that Cryptopia never made it back when only a small part of their assets was lost. Compared to Binance which lost around $40 million, Cryptopia should be up to its feet in no time at all. In my guess, the management do not have the energy and creativity anymore to run the business and as to why no big competitors competed to save the business that can perplexing to me.

It looks like withdrawals were not possible yet they reopened deposits with new addresses a short time before they shut down properly. That's either incompetence or deception. Either way they've moved from innocent victim on the surface to being anuses and I hope they get nailed for it.

Comparing Cryptopia to binance then its just far but when we do talk solely on the percentage of the lost/hacked funds then its just too small and recovering up
wont really be a problem but i dont know why Cryptopia didnt able to stand up and chose to close its doors instead.

I highly believe that this is a deception.

No wonder some are thinking that maybe some people inside Cryptopia can also be involved with the hacking. The least that they can do is to let another exchange or another group take over the operation of Cryptopia so that the business can still be salvaged for good. Maybe (just maybe, anyway) they are hiding something in there and they don't want to be exposed that is there is no transparency here and they don't care much about the opinion of their users...they just decide on their own to the detriment of those who believed on them. Oh, well, Cryptopia is now just another exchange biting the dust.

As long as there is no legal control, manipulation is inevitable. Even banks do so. "Although there are some banking regulations rules, many banks are declaring their bankruptcy and therefore fleeing clients money."
Cryptopia is assumed to be responsible for all user deposits and to act as their guarantor. The news of hacking does not negate being responsible for this.

Cryptocurrencies have been created to get rid of these arguments so if you do not trust any exchange platfourm, do not use it.

Most banks insure their clients money up to a certain amount so there are very few people that lose money from their bank accounts like that.

Always try to be in and out of your exchange dealings and only send fractions of your funds at a time to protect yourself.

I agree, this is more on a deception on their part, I mean they allow withdrawals, promise to their customers that they will definitely back in no time. And when the price of crypto is surging ahead, they suddenly liquidate.

I don't think they will re-open, NZ authorities has step up on this, maybe the question is what laws govern the liquidation process? As far as I know, there's no clear cut regulations on NZ regarding crypto.

Every cryptocurrency exchange platform in the world is doing that.Cryptopia isn't different.
They will pay out to customers at a price(and a currency) that suits their needs and can let them run away with some profit,after the liquidation.
8% coins stolen from a hack isn't enough for a crypto trading platform to bankrupt.

Very interesting take on the matter.

Given the track record that Cryptopia had it is extremely likely that they are not acting in good faith, especially when you take into consideration the fact that they aren't actually taking away coins that were actually stolen, which is the most logical and easy thing to do.

There's clearly a motive for them to do this from a simple profit perspective, they can play with customer funds essentially. I doubt that anything is going to be done against them though in a court of law, unless some sort of class action lawsuit is filed against them.

Every crypto currency hack of every exchange involves insiders.

The questions are :

were the insiders lacking competency?
were the insiders intentionally doing it?

first case if true means oh well but as op has written they now see an angle to profit off their lack of skill at protecting customers coins.

It seems like the case is being handled by the courts, so it's probably legal at least to some degree. I could be wrong, but isn't this the same case with Mt. Gox? The people who had coins on their account won't be given back the exact BTC amount that they lost.

But yeah, I don't think there are any specific laws regarding exchange losses yet, so they're going to be able to continue getting away with shit like this. Either way, it's best not to trust exchanges too much, if at all.

That sums it up right there.

I think that the fact that they are doing this clearly is profit driven, otherwise, they would be reducing balances in customer's accounts with the actual currencies that are lost, not the BTC-equivalent or something along the lines of that.

However, I don't know if that's their motivation for going bankrupt per se.

Also, from other recent news it seems like that one of the Cryptopia co-founders or team members has already moved onto build another NZ-based exchange. Talk about a quick change of scenery?  ::)

Don't forget that cryptopia website was also running a marketplace until the end of 2017. Some of the items that were posted for sale were legally questionable.

Basically when a company declares to be bankrupt all their liabilities for their shareholders are only limited to the existing assets they have which means after selling all their assets the money they will get from that is then divided equally to the shareholders the company have. If you have proven that Cryptopia is only doing this to steal your money then you have to show it but I doubt they are really covering it up with bankruptcy since they got really hacked and a lot of their users' funds have been stolen from their system.

I had a clear feeling in my voosche that as soon as the new Bitcoin pamp and the whole cryptocurrency started, half of the exchanges (new and old), that have appeared in the spaces of internate, would close and take our funds.

This is manipulation and they want to make as many profits as they can to at least recover their losses they make it a cash cow even in their last days, they are not the last one that's going to do that, we will see more and more exchange doing just like that when they are hacked and going to liquidate all their assets.

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Apparently they filed for bankruptcy in the U.S. and not on New Zealand since their data is stored in a server based in Arizona so this could be a big legal mess when they are covered by two different bankruptcy laws by thw two countries. However I do see that it's quite odd that they still have the guts to charge their custoners who are affected as well, its like they are extorting their customers where they know that their remaining balances are on the line.

I wonder if they declared bankrupt then our assets will be return thru insurance like the bank in which every depositor are insured for a certain amount. I been waiting for so long for their site to be working again until my assets will be return then if will not then it is clearly that Cryptopia is not worthy of their reasons.