Bitcoin Forum

So here is the main issue I have with the announcement Cryptopia is shutting down.

After the theft of the coins Cryptopia re-opened and continued doing business but ended up closing down.

If Cryptopia had not re-opened after the theft of the coins, what would investors have lost?

After Cryptopia re-opened and allowed investors to deposit and withdraw funds, what will investors lose?

I would take a guess and say it is highly probable that Cryptopia was re-opened after the theft with at least one eye on the possibility that they could shut down at a later date and hand over to an administrator after regaining customer confidence meaning they would send funds to Cryptopia wallets again therefore more funds would at Cryptopia funds when they closed down.

There was no rush for them to allow deposits after re-opening, they could have allowed trading and withdrawal for a short time to see where the business was going but opted to go down a different route.

It seems investors will now end up losing more as a result of them re-opening after the hack because they never thought through the best way forward instead of rushing in.

Investors lose all coins they had on exchange because some of them hold coins on exchange, but even so i don't know if they return all coins. Investors don't lose nothing after cryptopia enable and allowed deposit, but maybe cryptopia try to see if they can get new users and if they see the drop decided to close.

I guess they were trying to save the business,  they were hoping to see if some users will get back on again and continue trading after all what had happened. Of course its not that simple now that we've seen them vulnerable. Investors were given time to withdraw when they reopened, those who deposited took the risks. I doubt if there were many of them though.

I disagree. After Cryptopia re-opened it allowed users to invest by sending their crypto there again.

After Cryptopia closed down recently, all those people that deposited their crypto might stand to lose it all.

We wait for Cryptopia administrators to make a full press release.

Cryptopia has tried their best to save the exchange but thing didn't work. That's the risk of investing and storing coins in an exchange. Any unexpected thing could happen anytime so it's best to keep our earnings in a more secured wallet to get rid of these instances.

At this moment we can't say what investor will lose.
Until there are no news it's totally useless spread FUD or other speculations.
Not all coins/tokens from the exchange have been stolen.

Of course I do not envy the administration of the resource, as well as users who may lose their money.  This proves once again that we should not store all eggs in one basket, especially on the trading exchange.  There is no fault of the administration, although it is always necessary to improve the degree of security of the resource.

Cryptopia should have not opened and allow deposit after the hack in the first place, I think it is just a trap for the users.  I think they are finding way to give back what their investors had lost on that hack by liquidating the depositors token and funds.  They can just say they are closing and give time frame to enable users to withdraw their coins and tokens.  But  instead they just announced that they are closing and suspended withdrawals in a sudden.  That is a broad daylight robbery in my opinion.   I just hope that depositors can get their funds back.

That was my concern too, why did they re-open allowing deposits again?

Something does not add up and it seems that investors will suffer while another crypto exchange collapses.

Indeed. I was expecting something like the nicehash reimbursement program but to much damage was been done it seems. 

I've been vocal on these boards about what a poorly run exchange I've found Cryptopia to be. I'm grateful I never left more on that exchange beyond a few coins that were on sell orders. However, it still sucks to have money unaccounted for, and I'll be following this debacle closely for sure. I agree with Jolly Good that it's just shameful that they reopened for deposits but not withdrawals. Stinks of an exit scam to me

I think it is difficult to be able to replace a new nicehash because it requires a lot of capital and they also think of missing funds from traders so maybe they better close and choose not to continue the platform.

Yes it has many hallmarks of an exit scam.

I remember when their service was unavailable a couple of years ago because they were "upgrading" their servers adding lots and lots of new coins in one go. Since then the site was never he same again.

The recent "hack" is definitely not the whole story, I wait for the full true story to come out.

I was lucky by chance, because just before the closure of the Cryptopia exchange, I withdrew almost all the funds from my account. On the account there were only those tokens, the withdrawal of which was closed, but they cost only about $ 50. Nevertheless, I expected to still get this unfortunate money when the exchange resumed work, but the withdrawal of these tokens was not active, and the exchange closed again. I sympathize with those less fortunate than me. Trading on cryptocurrency exchanges is a very risky business!

This news is unfortunate, I just realize I opened the exchange but don't know how many coins I bought there yet. I have to make a check on that. I just hope I don't have much coin there, that is if I can still be allowed in.

That is why keeping your trading or investments fund in an exchange is a very risky thing to do and we should be very careful whenever you hear about an exchange's platform been hack as it is few of them that do come out very strong again. Deposits funds may not all be withdraw before the  shutdown of cryptopia exchange and it is painful if one deposit money after the hacked and their are on able to withdraw before the shutdown.

unfortunate to see them go. Seemed like they were trying to get their nose clean, despite the fact that so many pump spam messages encouraged insider trading there. kek. oh well. one of the primary lessons in crypto, as per exchanges.

get in, get what you want, get out

^this is why i used to like shapeshift, but that is another thread.
good luck to all you users on that spreadsheet :o

Guys, who are using small centralized exchanges? And if you use it, why don´t you immediately send funds to your wallet?
Small exchanges are not regulated, they do not have insurance or enough funds to cover all loses.

Cryptopia wasn't that small. Also they were on the market for a long time.

Still, this hack seems to me like an exit scam to me from day one. We learned again, never trust an exchange.

It is obvious to me they tried to run their exchange as if nothing had happened and were expecting the community was dumb enough to believe in them again, but that did not happen so they changed their plan, while I really hope they do not scam the users that believed in them at the same time I do not know what they were thinking, why deposit your money in an exchange that was recently hacked and that is not allowing withdrawals? At some point they need to use their common sense and stop trusting in centralized exchanges.

The lesson learned is that you should only have that much coins stored on an exchange you need for trades and IMMEDIATLY withdraw them as soon as you finished your trades. Exchanges may shut down from one day to another, happened to a lot of exchanges in the crypto space already.

Some people are just unteachable. A few weeks ago i saw a poll in one of the telegram chat: " where do you store your coins?". And what do you think? Almost half of those who have voted keep their assets on exchanges.

if indeed Cryptopia is re-opened, and the trade returns to good work, investors may not experience a loss, but if the Exchanger's condition does not recover, investors will lose a lot of assets.

Still they are not learning their lessons. Maybe, they are waiting to lose their entire portfolio before they realise that they need to keep their coins in their own wallet. Big and famous exchanges are not free from possible hacking incident, so you should always keep your coins safe and secure.

I hope your losses will be minimal. Any exchange sinking and taking customer funds with it is unacceptable.

If the Cryptopia owners did anything wrong we will hear about it when the news is released in the coming days and weeks.

They actually claimed that Cryptopia was bankrupt and would not open it again. they are delaying and calling for more than $ 2 million to be able to pay investors.
This is really a very unfortunate incident and also an experience for traders. we should not send money to a small exchange and do not have a reputation in the crypto market.

Of course, the investor will lose their money because I think many investors still have their coin in that exchange, and they are not yet to withdraw their coin and send it into another exchange. So they could only hope that cryptopia can re-opened and allow investors to withdraw the funds. But if they don't re-opened, then the investor will regret that because they lose their coins without having a chance to withdraw.

Agreed. As another user posted in another thread, exchanges should only be used to trade. When the trade is complete the coins should be withdrawn.

It totally Doesn't Feel like Cryptopia is losing it's all investments. I hope they will be Prepared with their Backup Plan. As I personally felt Cryptopia just doesn't go into Vain just like that. Cryptopia mostly holds its investments safely as it should for now we cannot just make  Statements until its Confirmed. I
Hope it doesn't let all the Big time Investors Down. :-\

Exchanges are all targets for hacks. Better to avoid them and only use them to trade only.

the time cryptopia re-opens their deposit after the hacking problem, i knew it that this would happen..

Maybe they are too lazy or don't understand fully how to properly store assets. Anyway, nothing good will come of staying without additional efforts.

Surely a well established exchange like cryptopia will have have plenty of reserves in it's cold storage wallets. Those are impossible to hack unless it is an inside job. Those funds should be enough to keep it going and cover the losses from the ethereum hack

In case you didn't know the exchange was declaring bankrupt and is already trying to liquidate what is left. Quite a shit situation.

I agree with your views that when they re-opened and allowed deposits but blocked withdrawals it means something is not right and something was not right.

I'm thinking that is a trap for the users of cryptopia but there is a fault on the part of the users too. They know already that the exchange is vulnerable to hacking. Why they didn't transfer their coins to other exchange or rather sell their tokens at a loss and take away all of their funds their. I have tried to trade on cryptopia once when I trade Centra token I remember. I don't like the exchange for some reasons.

i still do the same thing,because what?
i do it for quick trading if i see some big changes on market graph,
and of course i think twice or even more what exchange i choose for it.
and i never do that in exchange such a cryptopia,nova exchange,livecoin,coinexchange,
i am not saying that all exchange is same,but on this cases, they are have more more unfamiliar coins.
and i just think maybe not safe to saving our asset there.

Well, I guess i should be happy for you.
It wasn't about day trading or trading at all, but about storing assets on exchanges instead of using cold wallet.

I feel bad of those investors and traders who left their coins on that exchanges, i guess cryptopia have to save their business because of that recent hack attack.

Lesson learned here:
Always take your coins in any exchanges and never make it as your online wallet.
Exchanges are the number one target of the hacker if they want your crypto.
There is no safe exchange that ever existed.

Link for info:
https://www.chepicap.com/en/news/9702/cryptopia-liquidation-everything-we-know-so-far-about-the-shutdown.html

After the hack case, now one by one the exchanger looks bad. this is a big question for every user.
Will we believe in exchanges like that?

this will be a concern, and a warning for each user.

I read the news published on May 31 and I don't know that I almost didn't believe it would happen. Is there no other way to reduce the loss of traders and holders who still keep their coins in cryptopia. Is this the same as time consuming mtgox long enough to solve these problems

Yes I agree with you.

Exchanges should be used for trading otherwise there should be no coins left on exchanges.

Peoples have been warn on several occasions not to keep huge funds or coins they cant afford to loose on an exchange site but I guess if we keep on saying this till next year some people still wont listen.
Aside that, I believe the exchange in subject team are not competent cause this will be the second time this year which the exchange was shut down while users loose their fund.

This is where I believe that SEC or some regulatory body should come in play to prevent and protect this sort of ugly incidence which will put investors in heart ache. Even if an exchange wants to fold up, then someone should fall with it as well as insurance fees

That is very sad to read.

Even after all the times exchanges have scammed investors or have been hacked but the owners have not given funds back to investors, so many people still keep their funds on exchanges?

That is basically a disaster waiting to happen.

It will never re-open. We just want to read the details if/how/when any scam took place.

Such an occurrence from cryptopia is a perfect example of not to keep your coin on an exchange,  because of a susceptible hacking,  I hope they will be able to refund investors if not all but at least they should make a provision for that

That is a valid point. As it was mentioned by another user here, the only time your coins should be on an exchange are when you want to trade. At any other time they should be on your personal wallets.

I think if the exchange is shutting down several times, this will result in losing customer trust. because some customers must have felt a loss, because the assets are restrained, can not get a profit. if it is reopened, I think it is likely that there will be a transfer of assets to another exchange.

You will not be safe even if you keep your funds in your wallet, because sooner or later you will still have to transfer your tokens to the cryptocurrency exchange. It is possible that at this moment there will be problems with this exchange. Of course, if you keep the funds on your personal wallet most of the time, then you are less likely to lose them.

I agree but the question the Cryptopia team did not answer was "why" did they re-open after the hack only for customers to start depositing crypto again and only for Cryptopia to close down permanently this time.

That was what I was saying. If an exchange is hacked or the exchange decide to scam at the very short time your funds are deposited then there is not much you can do about it.

How the cryptocurrency community has not found a way to insure itself against these kind of exchanges with tendency to cause harm and loss baffles me but then it goes a long way to show that this market is still very tender and hopefully, ills will be corrected in the future

They must return all the coins of the users, there must be a clear liquidation even if there’s no regulations because for sure Cryptopia is just closing their exchange and make a new one since they know the opportunuties in the market. I doubt that they will totally leave the market easily, we should watch out for this.

I think you should not place your funds in the exchange for a long-time. Because exchanges are still more vulnerable to this kind of thing and also vulnerable to hackers. Better place them somewhere safer like a wallet instead of exchange sites.

It is never advisable to store crypto holdings in exchanges for a long time. However, it cannot simply be avoided for a good deal of crypto holdings to stay in exchange wallets because it is being actively traded there. It is a huge waste of fees if funds are going inside and out of the exchange every time a nice trade call is made. That is not practical. That is the reason why I have funds left in cryptopia. I just hope they will expedite the entire settlement process.

If it was a simple thing to do I am sure it would have been addressed by now but it is an almost impossible task. I cannot see how it can happen unless exchanges voluntarily give their profits to an independent fund which will pay and cover for some or all of the losses if the exchange crashed.

Well, actually traders don't have many choices, lots of coins which in my opinion are quite good and convincing in Cryptopia, unfortunately at the same time pump & dump activities in the exchange still seem to be allowed, maybe the reason is that traders keep away and the rest have to lose because their assets are still there.

If there is not enough funds to go around they will be unable to return all the funds to all investors. Unfortunately some investors will never get back all of their funds.

I am still waiting for official news about why Cryptopia failed and what the owners tried to do to save it.

 This is very disappointing news on cryptopia, no one ever expected this to happen since this exchange site gained reputations for their good track record on trading crypto. However, the incident took hard time to be resolved yet their investors find it frustrating seeking hope to recover their funds specially those promising tokens and coins they hold for so long.

I do hope admins of cryptopia will fix this serious issues behind them, and people will get back their asset.

Well i would say not too surprise to see this happening to be honest, never like that exchange the few times i had to use it because of some alts i need to dispose the experience was far from okey, the exchange freezes and hangs at will, not to mention it was serve as a home for pumps and dumps, i feel for those who will suffer as a result of this mess, another lesson to be learnt especially for those who still keep their coins on exchanges.

Cryptopia was not really doing too bad and the problems started after the hacked of the exchange platform. I have trade with them several time and i think i have never have any issues with the exchange. It attract a lot of people and it is one of the volatile exchange in 2017. The exchange was sut down with some of my tokens in it. I really feel for the investors especially those with huge funds at cryptopia.

This exchange is dead. Others will no doubt go the same route too.

Wallets are always better than exchanges so only send funds to exchanges when you want to trade, other than that your crypto should remain on your wallets.

Very disappointing, cryptopia will not provide compensation for capital holders.
it seems that the funds will be a loss to investors and traders.

this kind of sucks and they had reopen for a bit but then they decided to go this route. not sure if it will ever reopen but I hope it will for the sake of investors. not really sure what's going on their bank side but it won't hurt if they keep people updated rather than leaving them hanging.

it seems there is a provision to make a plan to refund investors but, but ain't sure if they gonna be able to pay all investors their money,  because the sum is huge

I agree, crypto should only be on exchanges when ready to trade otherwise they should be on desktop wallets.

Yeah, we know this basic holding.

But, went i sell my shitcoin/altcoin i need to make an order pending, and makes me to store my fund into an exchange because an order pending. If i sell at right now, its mean i will make a instan order. Sometimes the price have a short jump, and went we make a order pending the pump hit thats order.

that sucks i have some shitcoins in my cryptopia and it's worth a few hundred dollars, but as per the latest announcement and i think that willnever be re-opened again. shitty scam exchange site.
they will never re-opened their service again.
I hope the regulator will take this shit scam exchange site to the court.

I have read some articles saying that Cryptopia is borrowing money from banks of more than $ 2 million to pay debt to investors who have deposited a lot of money there.
Investors have been safe and crytopia has filed and declared bankruptcy.

Any exchange at any time can go bust and take your coins/tokens with them.

Golden rule: only keep coins/tokens on exchange when you want to trade or keep those on exchanges that you can cover losses for if they steal from you

It is already loss to majority of them because ever since they had liquidated, there has never been any investor that got paid back their money, and I see this as a scam because irrespective of thee amount that was lost to the scammer, it is still not everything that the scammers stole, so what happened to the money left, at least they would have compensated the remaining investors with it, but rather they chose to join scammer in calving away with the remaining funds in the market.

Prior to when the exchange was short down, I don’t know if investors still had the chance of transferring their coins to another wallet which I expected them to ought to have done rather than waiting and thinking they would be able to resolve the issue like Binance did.

Yeah its the Golden rule but most people do fail to follow this up.They would only realize when its too late or they do already lost up their precious coins.

This is why I don't really deposit all in with all of my coins when tending up to trade or I do actively pulling it out nothing matter if I do would pay up network fee anytime but at least I do know that my coins would be safe.

The process of going through claims and credits for Cryptopia is expected to take months... I am waiting patiently in line..

Seems highly unlikely all Cryptopia users will ever get all their funds back.

The exchange should never have re-opened after their initial "hack". I was very sceptical when they re-opened with all that fanfare and restrictions on withdrawals.

At the time it seemed to me they were only "re-opening" in order to win the trust of their users so they deposited more funds at Cryptopia but it seemed they only had the intention to do so because they were going to close and therefore more funds would be lost for the end user that sent them.

So far, it seems I was correct because all that I thought would happen is actually happening. The final word will be with the administrators when they announce which assets they managed to seize both in crypto and from the owners if they committed any fraud.

well they have appointed one of the top 10 firms to take charge of bankruptcy and liquidation proceedings, so hopefully there is some due process followed.

Do you have any link to the site where it is mentioned they're borrowing 2million to pay their customers?
The exchange certainly filed for bankruptcy but it looks like it will take a long time to refund their customers

Users will not learn their lesson as you put it because any exchange can start the process of scamming at any point.

It is all about a matter of sending your crypto to exchanges for trading only, then for them to be withdrawn immediately. It is essential never to leave crypto on exchanges.

Good thing I decided pulling out my funds from cryptopia last year before the incident happened. Luckily, after a month when my funds was withdrawn sudden hacking was badly occuring on that exchange site. It's been always advice by many expert that entrusting our crypto on exchanges isn't a safe idea, so why bother putting our asset despite of unsafe conditions.

The evidence does suggest they gained trust by re-opening after the hack in order for users to send crypto to their exchange in the knowledge that they would fail at a later date.

Not a good idea to do that and have users out of pocket.

Cryptopia was one of my favorite exchanges though when I started in crypto. It has a decent volume and can pump many altcoins when there is a good news or announcement with any coin. But I guess the fact they don't become a huge thing and succeed like Binance is the signal that they won't last long and make an exit scam as like the ordinary exchanges do. It's funny to see that there are still complaining who still wants to retrieve their shitcoins from there.

I somehow don't think Cryptopia exit scammed. I believe they got hacked and are following due process subsequently. They have appointed professional liquidators to take charge.

Thankfully you never lost your funds. It was a major public relations disaster when Cryptopia got hacked and it seems they never actually had any scope to make real progress to return funds to users instead they allowed eposts and did not allow withdrawals so the alarm bells should have been ringing from day one.

I somehow always trusted Cryptopia I even bought their share coin which payed something according their accumulated fees. Now I have very little hope to get my investment back.

There are many factors that cause cryptopia scam and I think reading reveals that cryptopia is your favorite exchange that is indeed true and that I think can be a good exchange in the past. right now whatever happens cryptopia is falling and it's happening now

What do you mean by this "exchange that is not secured"?
You are aware that some people like daily traders are trading all the time on hourly base 7 days a week. Exchange is actually their playground, not some bus station where they just unload or load goods and bags an leave without turning back.

Also bunch of people didn't withdraw funds due to fees they pay, so every person has their own story why it had coins on the platform at the time of hacking. Things are not black and white as some people are trying to present them now.

Maybe the first mistake Cryptopia made was when they added that whole bunch of coins and tokens to their website which resulted in outages and delays. They seemed to be playing catch up ever since and dragged out their demise for well over a year before the "hack".

Right now it is difficult to see any exchange catching up with Binance

It seems that these difficult times have caused a lot of people to become crazy. cryptopia, which was known as a high-volume exchange, experienced these difficult times in ways that did not benefit their users. I am a person who is not easy to believe when an exchange releases news that they have been hacked, I wonder if they don't have security experts who can handle it. those working on the network must have known this threat, it should have been anticipated from the start. this looks like a game to attract sympathy from users.

This Exchange has been doing some serious problem before. They have been keeping shutting down the deposit and withdrawal function before.
Luckily I'm not trusting this exchange anymore. I feel bad for the investor that lost their fund there.

I am also thinking of this too, but the mistake they are making is to keep silence for long on it, they need to keep updating people, or else many of their former users will start getting out of patience and make some moves against them which could complicate issue. I know they are passing through though time now, and you know they are not like Binance that has SAFU FUND to salvage their situation.

If they have to compensate their users, they have to legally come into an agreement and then source for funds to do so. Look at the situation the hacker has out them, and the perpetrators are just somewhere cooling off with the fund that has shut down another man’s business entirely. People just need to give them more time to make arrangements.

Cryptopia was a reputed old exchange. For a major hack, this exchange is going to be closed! Where when Binance lost 7000 BTC by the hackers' many investors wanted to cover the Binance loss by depositing fund! It is really hurt to see the Cryptopia end! Some good investors could buy this exchange platform.

You might be right but just because professional liquidators are appointed (or imposed) does not mean a scam did not take place.

You might be not be thinking.
You are hope / wish -ing.

HeXXX himself has published claims that his business partners likely 'set up' the hack as to cover their outright theft of funds.

I never knew that. Do you have a link/URL?

It is a decision for the administrators but in reality trying to get this exchange to continue especially after the scandal it will be a tough job trying to sell it to any would-be buyer.

Yeah the company want go try recover that's the reason for the re-opend purpose, they hope the investors stay use cryptopia in their trading works. Because investor and user are very important how the company survive.

haizz, to get your money back, it takes a lot of time and takes many steps to confirm it. I know that many people lose a lot of money and want to be compensated but look at this to-do list, is it too much?
we even have to re-provide KYC and some necessary data. This will keep our information on management and it will be dangerous. In addition, Cryptopia has collapsed long ago and there is a high chance that they will not be able to repay all their debt in a short period of time. I'm concerned that this is just a form of misappropriation of user data, be careful.