Hacked Cryptocurrency Exchange Cryptopia Goes Into Liquidation

[EdvinZ]

The exchange declared itself bankrupt and, most likely, will not allow people to withdraw funds from their accounts. They could at least allow people to withdraw their altcoins from the accounts and then finally close their service. These actions cause confusion among traders.

[rdbase]

After hearing of the bankruptcy of this exchange I expected their customers to lose any funds they had in their accounts but now after the news of them allowing of withdrawals happening and then a liquidation of their assets being done. It is causing panic for all of their customers.
I had an account with them but had no holdings on their exchange and havent done an activity on there for about a year now. I havent received any email notification from them on what they will allow their customer base to do if they had anything left on their account balances.

[ranman09]

Dex should focus on the development of their security measures that would protect the funds of their users. It has been the struggle and agony of most of the holders in Dex these days. The number of users who choose Peer to peer transaction is increasing which means they're trusting it more than decentralized exchanges.

What? You got it mixed up. The point of Decentralized Exchanges or DEXs is that they don't have control over your funds, and that YOU control your funds.

Exactly, isn't it better to control your own funds instead of trusting third-party?

Probably, but when dealing with actually exchanging large amounts of money. It is better that you have an intermediary at least that will safe-keep both of the funds. And actually will refund is in case problems occur under their care.

[mk4]

Dex should focus on the development of their security measures that would protect the funds of their users. It has been the struggle and agony of most of the holders in Dex these days. The number of users who choose Peer to peer transaction is increasing which means they're trusting it more than decentralized exchanges.

What? You got it mixed up. The point of Decentralized Exchanges or DEXs is that they don't have control over your funds, and that YOU control your funds.

Exactly, isn't it better to control your own funds instead of trusting third-party?

In paper, yes. For security purposes. The problem is that DEXs are simply not nearly as good and as noob-friendly compared to good custodial exchanges right now. Hopefully the DEXs can catch up.

[Mike Mayor]

1 by 1 they will all go down till people open their eyes and start seeking for security. What do you think? And are DEXes going to be more usable exchanges instead of CEXes in the near future?

DEX is not a solution of that problem. While the exchange is decentralized, user and his funds are still centralized. So in that case hackers would attack users. Similar things happened with etherdelta that is now RIP.
Also, in case with DEX there is no chance for user to get a refund while centralized exchanges are responsible for other people's money and have to pay a refund. Probably this is what Binance gona do after their recent hack. We need stronger and more reputable exchanges.

Since when does CEX need to do anything. I was ripped by the CEX exchange OKEX. DEX  are the best. CEX doesn't mean safe. You give CEX your private info so if they hacked you get exposed as well.

[tyz]

DEX is not a solution of that problem. While the exchange is decentralized, user and his funds are still centralized.

Why are funds centralized on decentralized exchanges? I doubt you understand how decentralized exchanges work. Exchanges like Cryptopia play the intermediary role between the buyer and the seller. (Real) DEXs allow to do a trade without intermediary and thus, there is no centralization.

I recommend to read this article https://coincentral.com/dex-decentralized-exchanges-explained/

[Shenzou]

1 by 1 they will all go down till people open their eyes and start seeking for security. What do you think? And are DEXes going to be more usable exchanges instead of CEXes in the near future?

Thus is another sign and proof to why you should never go and seek to put money into not so popular exchanges just because they take less fees, it is just better to use exchanges that are popular and secure than to go look into dodgy ones, things like these have been happening, it happens to binance where they get hacked but at least nothing has changed and people had their money and no withdraws were delayed, and i don't think that any exchange would do that.

[panjay]

1 by 1 they will all go down till people open their eyes and start seeking for security. What do you think? And are DEXes going to be more usable exchanges instead of CEXes in the near future?

Well more and more people surely will flock to greater exchange like binance for a security reason and people will use alternative low tier exchange only when they want to buy/sell specific coins that not listed on binance for example.

I think dex and cex will still coexist in the future because you know, people want convenience as a customer, surely FIAT trading only can happen at cex exchange, that another factor people will still using cex exchange, but yeah dex will still have a market but not a dominant one.

[pooya87]

1 by 1 they will all go down till people open their eyes and start seeking for security. What do you think? And are DEXes going to be more usable exchanges instead of CEXes in the near future?

DEX is not a solution of that problem. While the exchange is decentralized, user and his funds are still centralized. So in that case hackers would attack users. Similar things happened with etherdelta that is now RIP.
Also, in case with DEX there is no chance for user to get a refund while centralized exchanges are responsible for other people's money and have to pay a refund. Probably this is what Binance gona do after their recent hack. We need stronger and more reputable exchanges.

that is not how Decentralized Exchanges work. if the funds are "centralized" as you say then the exchange is NOT considered decentralized. a DEX has a clear definition, it is when you as the trader are the only one in control of your funds and the trades occur in a completely peer to peer manner without the need of a third party.
don't confuse what Binance calls "DEX" with an actual decentralized exchange, they are misusing the word for their centralized platform.

[Nunoluck]

1 by 1 they will all go down till people open their eyes and start seeking for security. What do you think? And are DEXes going to be more usable exchanges instead of CEXes in the near future?

It's hard to get the correct answer about this. Actually it is only matter of security. The fight againts hackers will never end. But I prefer like to use CEX because some reasons. I tryi to reduce the risk by not save my cryptocurrency in exchange site for long term. Usually I withdraw my profit every done trading in a day.I try to hold more bitcoin so my profit usually always in form of it.

[bitcoinsc]

i dont understand what liquidation means. but i have 2000$ worth of bitcoins. and i have 50$ worth of skycoin. am i going to get this back? they said months. wtf?

[rahmatullah9305]

Through Decentralized Exchange or DEX, everyone can enjoy the exchange of digital currencies into real currency. But the obstacles faced at this time, in general, the exchange agency still adopted a traditional system. Where the system's defenses can be penetrated by hackers, as happened a few months ago in Japan.

[Herbert2020]

Dex should focus on the development of their security measures that would protect the funds of their users. It has been the struggle and agony of most of the holders in Dex these days. The number of users who choose Peer to peer transaction is increasing which means they're trusting it more than decentralized exchanges.

What? You got it mixed up. The point of Decentralized Exchanges or DEXs is that they don't have control over your funds, and that YOU control your funds.

Exactly, isn't it better to control your own funds instead of trusting third-party?

In paper, yes. For security purposes. The problem is that DEXs are simply not nearly as good and as noob-friendly compared to good custodial exchanges right now. Hopefully the DEXs can catch up.

the bigger problem with decentralized exchanges is their volume in my opinion. everyone usually assumes they are bad so they don't try them out so their popularity remains small and with that they are still having low volume which means traders can't hope to make as much profit as they can in centralized exchanges with their higher volume and in most cases "packed order books" which helps with dumping of large amounts of altcoins.

[weidex]

Dex should focus on the development of their security measures that would protect the funds of their users. It has been the struggle and agony of most of the holders in Dex these days. The number of users who choose Peer to peer transaction is increasing which means they're trusting it more than decentralized exchanges.

What? You got it mixed up. The point of Decentralized Exchanges or DEXs is that they don't have control over your funds, and that YOU control your funds.

Exactly, isn't it better to control your own funds instead of trusting third-party?

Probably, but when dealing with actually exchanging large amounts of money. It is better that you have an intermediary at least that will safe-keep both of the funds. And actually will refund is in case of problems occur under their care.

When you forgot your private key, there is no one that can go into the smart contract and withdraw your money even the admins of the exchange. When you are on a DEX it is you that have to take care of yourself, you take care of your private key and no third-parties manage your money.

[||bit]

i dont understand what liquidation means. but i have 2000$ worth of bitcoins. and i have 50$ worth of skycoin. am i going to get this back? they said months. wtf?

They did let people withdraw %85 of their btc for last month, sorry that you missed. I was lucky enough to save mine (%85).

They are now liquidation period and i doubt they will pay anything after it is over. In ideal world, cryptopia's debt to us should be the priority because they are our money after all but right now we will take remaining after all debts paid (taxes, fees, liquidators salary, workers salary and etc.) so don't expect anything but if something they pay you at the end, be happy.

[LUCKMCFLY]

Well cryptopia was my first Exchange, the one that opened the doors to the Crypto world, but of course, its strong was not in security, it does not surprise me that it has been hacked, although it is difficult, because the market volumes are not so high there.
I think DEX is a good option, but could you tell me if DEX has had new ways to protect its customers?

[niisarearning]

1 by 1 they will all go down till people open their eyes and start seeking for security. What do you think? And are DEXes going to be more usable exchanges instead of CEXes in the near future?

After etherdelta hack even i dint find better dex exchanges . yes there is Idex or Ddex or latoken dex these exchanges are not much convinced like etherdelta . Already i lost good amount of money in Cryptopia hack dont know when i will get return