I send many tickets in cryptopia but they did not answer me so I made a complaint against them to New Zeland Financial Dispute Resolution
www.fdr.org.nz after that they contacted me by email.
i send my info to www.fdr.org.nz and they send it to cryptopia Good Afternoon Cryptopia,
Financial Dispute Resolution has received the following complaint From Mr -------:
hi
first i want to apologize for my english language.
my problem with cryptopia is they sold me something that didn't exist and take my 1.5 btc (bitcoin) for it. and now they do not give my btc back.
What happened::
On the 06/28/2017 I noted that the exchange rate for CSC (casinocoin) went down on Cryptopia, as a long-term holder I wanted to use this chance to buy more CSC and deposited 1 BTC. It looked like someone prepared a pump on the market with a lot of buying/selling into themselves. I placed a buy of 1/5 BTC which was filled over the next hours. As I was expecting more movement on the market and so I did not withdraw those coins. Over the following days, the market had some swings.
after few days I decided to take 500.000 CSC off while waiting on my orders. The withdrawal failed. I contacted support about it. On the 6/29/2017 5:39:10 PM I got a reply from support telling me: 51% attacks hapend (document 1). It appears there may have been a 51% attack on the CSC network, so we have placed it into maintenance while we investigate this further." I noticed several other coins had been placed into maintenance for the same reason.
The following days I opened several tickets asking about the status and when I would get my coins. I had been told the "maintenance" or "investigation" would be still on. At this point in time, Cryptopia must have already known that their wallets are empty and they have suffered an attack on their exchange.
Have a look on my filed tickets and Cryptopias response on them before I sum up what happened.
An attacker prepared this for several days by causing double spends to deposit coins to Cryptopia. Cryptopias system didn't detect it for some reasons:
1) They were fine with 6 confirmations on a high-speed coin
2) Getting a huge % of the total coin supply deposited from a newbie account did not cause a red flag
3) Huge volume (in relation) on a market that has been slow for months, did not cause a red flag
4) Failed deposits did not cause a red flag
and the worst:
5) Once a deposit confirms, it will be credited to your account in their database. AT NO POINT IN TIME does their system validate if the balances for each user and their total amount of holdings stored in the database match the amount of coins in their wallets. Therefore, Cryptopia allowed trading on a market with coins they didn't even have.
So if you trade on Cryptopia and everything works fine, they make money off it. If something fails, they will blame the everyone except Themselves.
Those things could have been detected if Cryptopia would do its homework and just validate balances or several checks that highlight strange movements on markets.
Cryptopia is not only not willing to reimburse my lost which is their fault, they clearly state that basically every loss of fund because of whatever issues is not their responsibility.
I either want my 1.07 million CasinoCoin or my initially deposited BTC (1.5 btc).
1.07 milion csc now worth near 200 btc but i want just my 1.5 btc.
thanks.
I either want my 1.07 million CasinoCoin or my initially deposited BTC (1.5 btc).
Attached is the correspondence we have had.
Can you please contact Mr --------- regarding his complaint. I’ve included him in this email for transparency.
after that cryptopia finally answered meHi Mr -----------,
As you are aware, CSC was the victim of a 51% attack. Cryptopia regards protection from 51% attacks as the job of the coin developers (as do all major exchanges). At the time of the attack CSC required 20 confirmations on Cryptopia and if the coin developers had raised any issue with our number of confirmations we would have adjusted this. CSC had a network with a very low hash rate which led to a coin with questionable security and stability. Those who create and maintain a coin are far more responsible for the hash rate than an exchange that hosts it.
Please note that when a 51% attack occurs, rogue nodes commit blocks to the chain and then roll back the chain, invalidating what was already confirmed. Please look at this link for further information on 51% attacks:
https://www.investopedia.com/terms/1/51-attack.aspWe have made attempts to work with the new CSC development team toward a solution for our customers. At this time there has been no agreement made. Unfortunately, without the coin developers working with us to create a solution we are unable to refund your losses.
Regards,
Cryptopia Dispute Resolutions
arvin hi again
first of all At the time of the attack CSC required 6 confirmations
not 20 . if was 20 damage was lower .
If cryptopia had sufficient confirms around 200 for a low hashrate
coin with very fast blocktimes, none of this would have happened. coin
Developers cannot set confirmation times on an exchange or how they
check transactions against the their database and the blockchain.
Developers have 0 access to the exchange.
and protection from 51% attacks is not job of the coin developers .
and if cryptopia security was like all major exchanges this problem
was not happened
and this is csc team answer:
After thorough analysis, we concluded that the attacker(s) were able
to falsely deposit some 9.7 million CSS to Cryptopia without actually
having those coins in their possession. While Cryptopia tells its
users that the coin developers are responsible for the loss, analysis
of the blockchain shows a different story:
More than 200 double spent deposits took place
41 of those deposits were successful
All double spent transactions were automatically rolled back by the
CasinoCoin blockchain and there was no successful fork
Most transactions rolled back within 1-2 blocks, the double spends
that succeeded had rollbacks between 10-60 blocks
The attack continued for eight days
Cryptopia claims block rollbacks of 300 blocks took place, this is not true
Cryptopia claims there was 1.2 Thash involved, this is not true, there
was a max of about 800 MHash during the attack
Cryptopia had set block confirmations to only six blocks for deposits
Cryptopia had no checks of their wallet against the blockchain at any time
Cryptopia only depends on its own database instead of the coin’s
blockchain after the six confirmations
Cryptopia allowed for 25% of CSS total market capital to be deposited
by a user(s), without that setting off any flags as a potentially
suspicious transaction
Only when a large withdrawal request was no longer possible did they
detect something was wrong
We tried to work out a solution with Cryptopia but they demanded we
deposited the missing 9.7 million coins or alter the blockchain. It is
obvious that neither were viable options for the CasinoCoin team
As an alternative we asked for a detailed list of BTC buys that would
be required to rollback the malicious transactions and return the
original BTC to the users. Cryptopia refused to supply this
Cryptopia decided to walk away, de-list CasinoCoin from their exchange
and leave users with their losses
and if it was csc team fault (which is not) It has nothing to do with
me. cryptopia can make a Complaint against CSC team and get back their
losses. cryptopia sold me Something that didn't exist and must give
back same money that i gave to them . is really simple.
cryptopiaHi again,
I can your email references a post that the CasinoCoin team made regarding the attack. Many of the figures and the information in this post are factually incorrect.
Additionally, we proposed that during their coin swap they created extra coins (or used leftover coins from the swap) to replace the missing coins from the 51% attack. The CasinoCoin team refused to do this and instead kept the leftover coins from the swap; this can be seen on their website in the coin swap conclusion news release. We have made many attempts to come to a solution with the CasinoCoin team and without them working with us we are unable to refund your losses.
Regards,
Cryptopia Dispute Resolutions
arvinhi
(again apologize for my English. I hope you can read my writing)
this problem happened because your site security was low. why should they give you coins that you lost? it's nonsense. in your logic when bitfinex or BitStamp and btc-e hacked they should blamed bitcoin and ask bitcoin devs to create that lost coin again. but its never going to happen. not bitcoin or other coins will not do that. so cryptopia should take responsibility like bitfinex and btc-e and... and give my money back because I send my money to your site and i don't know anyone except cryptopia . those sites give the user all of theire coins back but i want just my 1.5 btc not 1.07 million csc ( now worth 150 btc)
and as I said before if it was csc team fault It has nothing to do with
me. cryptopia can make a Complaint against CSC team and get back their
losses. you guys sold me Something that didn't exist and must give
back same money that I gave to you . is really simple.
cryotopiaHi again,
Cryptopia was not hacked, the CSC coin network was compromised. We only facilitate trades between users on the CSC network. You can make a complaint against the CSC team to attempt to regain your losses.
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