Cryptopia Cryptocurrency Platform Services and Development

[DADIBLAND]

Criminals must be punished most severely

[KriptoGuruTR]

Say bye to your funds because they are scammers. nz police are scammer backers. I offer to start a bounty campaign and have justice...

[ggarbi]

Cryptopia is just stealing the rest of our coins to cover its loss.
I cant believe that they done that with nz police helping them.
I think they hacked again and this is an excuse to shut down the exchange forever.

[WickedPigeon]

Lesson learned,
 
Cryptopia is the definition of Counter-Party Risk. And  counter-party risk is still the biggest risk in a blockchain transaction.


What should have I done: Desktop, Paper, Hardware wallets.

(Chanting in the background)
Desktop, Paper, Hardware wallets!
Desktop, Paper, Hardware wallets!
Desktop, Paper, Hardware wallets!

Never again will I leave money/coins at an exchange.

[FractalUniverse]

Lesson learned,
 
Cryptopia is the definition of Counter-Party Risk. And  counter-party risk is still the biggest risk in a blockchain transaction.


What should have I done: Desktop, Paper, Hardware wallets.

(Chanting in the background)
Desktop, Paper, Hardware wallets!
Desktop, Paper, Hardware wallets!
Desktop, Paper, Hardware wallets!

Never again will I leave money/coins at an exchange.

i know what you mean,
but if everyone did that, there would be no exchanges, no liquidity to sell or buy your coins, no significant markets excepts OTC..

[Slkp]

News
2019-05-15 18:04 - If listed with Cryptopia, list for free with Nova Exchange.
Dear Cryptocommunity,

We've just been reached by the news that Cryptopia Exchange is going out of business due to the severe damage that they faced earlier.

It is sad to hear that a fellow competitor of ours is facing these problems since all competition is good for crypto.

Cryptopia as a company has been around for many years, providing excellent trading, service and a healthy ecosystem for the cryptocurrency community.

In order for the communities to survive, especially the ones being traded only at Cryptopia, we at Nova Exchange would like to offer our help in order for the ecosystem(s) to grow, and offer free listing for all coins that were listed with Cryptopia.

The only condition for the free listing would be the following:

1: We receive the listing application before 1st of June 2019 in this format
(please specify Cryptopia Free Listing under payment options)

2: We ask their developers to add in the extra comments, addresses that they know that belong to the hackers.
This will ensure that we do not facilitate money laundering from people that are responsible with actions that are not in the favor of the cryptocurrency community.

It is useless for blocked coins.

[DADIBLAND]

The exchange has no right to keep the assets of the customers. Their business is based on trading fees and listing fees. They have demonstrated to all they are liars and thieves and have looked after their own interests before those of the customers. They could have easily allowed people to withdraw their funds in an ordered way but chose to get money for themselves first.

[xtraelv]

I've been posting updates here since the hack.

https://www.grantthornton.co.nz/faqs-cryptopia-liquidation/

Cryptocurrency is considered "property" under NZ law rather than "currency" under Japanese law.


https://www.classic.ird.govt.nz/income-tax-individual/cryptocurrency-qa.html

https://support.cryptopia.co.nz/csm?id=kb_article&sys_id=20d84d54db69778084ed147a3a9619bc

[cryptopia.victim]

So many warnings since the ex-CEO's emotional letter last year.
Someone told me Christchurch thinks that all sins are forgiven because JC forgives all sins.
Presumably they will say that they have sold the remainder of the few tradable coins at a low price. Payment of the remainder less high fees, after many months, if anything remains.

[fapnnap]

btw, dont expect your money or funds back ever, this is mt.gox scale stuff

[xtraelv]

btw, dont expect your money or funds back ever, this is mt.gox scale stuff

My personal opinion is that II don't believe it is. I believe it is a way they can legally get out of their building lease, leased servers, employment contracts and other obligations that over time will cost unnecessary $ and get a fair and legal way to return funds and preserving value. It is clear from the reported volume that there is not enough volume on the exchange to continue trading and cover expenses.

Currently it is in the hands of liquidators that have statutory powers and they have indicated they will seek the courts approval for certain matters regarding distribution of funds. https://www.grantthornton.co.nz/faqs-cryptopia-liquidation/

While I don't think all issues will be resolved but I think the bulk of the issues will be resolved within a reasonable timeframe. From what I have read is that it is likely that they will seek the courts approval to return crypto assets via withdrawal. This would require some legal approval because it depends on whether the courts see it as being held on behalf of customers or as a company asset.

The most logical and easiest way forward would be to consider it "held on behalf of customers" since it is easily identifiable, held separately, and preserves the best value.
(some of the alts would have no value in a fire-sale). Court approval would allow this to happen.
It also will provide funds to allow this to happen and allow them to hire independent experts to make this happen

Personally I feel more confident in liquidators (who are legally recognized as experts in such matters) making those decisions rather than things just dragging on for months unresolved.

The method in which Cryptopia has previously treated the funds (i.e. providing marker tokens for lost funds & their TOS) also indicates that it is the most likely path they will pursue. Under New Zealand law crypto is considered "digital property". This is distinctly different from Japan where it is considered "currency".

[Labrader]

It is clear from the reported volume that there is not enough volume on the exchange to continue trading and cover expenses.

There wasn't enough volume because they froze so many coins and blocked withdrawals and deposits. Previously they had quite a nice volume from coins which were unique to them or strongly associated with them: ETN for example was top volume most of the time. But for volume, there must be deposits. Which were blocked. This simple fact undermines the rest of your theory of goodwill.

By the looks of things, the element of premeditation is pretty strong and there's sufficient arguments to point to an exit scam. Please contradict me: post the TX of the "hacked" funds. BTW, how much was actually "hacked"? No one outside of them knows. If it was a hack, which now, after all this, I don't believe it was.

And there's another aspect: all the wording so far points to voluntary liquidation. BUT you don't actually need liquidators to voluntary liquidate: you just end all contracts, cease activity and return all assets of third parties. But you turn to liquidators when you don't have all the assets. So after the haircut they still don't have all owed assets? How funny. Where is the rest, dudes?

Exit scam.

[KriptoGuruTR]

This comedy movie is over. IT IS AN EXIT SCAM!!!

[MirkoIta]

I've been posting updates here since the hack.

https://www.grantthornton.co.nz/faqs-cryptopia-liquidation/

Cryptocurrency is considered "property" under NZ law rather than "currency" under Japanese law.


https://www.classic.ird.govt.nz/income-tax-individual/cryptocurrency-qa.html

https://support.cryptopia.co.nz/csm?id=kb_article&sys_id=20d84d54db69778084ed147a3a9619bc

It's very sad to see this happening, it will sure take a lot of time for the investigation and hopefully in the end there will be something to give back to customers. Thanks a lot for keep updating this thread.

[TokenBilly]

Delaying the filling for insolvency is punishable behavior under most jurisdictions.

By stating that most coins have been - quoting - "100% secured" they deliberately deceived their customers.

[TokenBilly]

From a legal perspective CT must return all coins to the respective owners. Assuming it is still there. Your 'balance' is no more than a number in their database at this point.

[arielbit]

a pretty smart move from cryptopia exit scammers..just take enough and leave some to be able to have a chance of getting away "legally"

these liquidators are vultures to your "shitcoin investment carcass"

[TheCryproMaster]

What about shareholders in this company, how will they be treated? I can see the coins are held in trust so should be given back but do shareholders have any rights to wind up funds ahead of customers?

[xtraelv]

What about shareholders in this company, how will they be treated? I can see the coins are held in trust so should be given back but do shareholders have any rights to wind up funds ahead of customers?

Shareholders (unless in exceptional circumstances) are the last to get anything. They usually carry the largest loss. In most instances they can only get paid if all the liabilities are settled.

[Noojna]

From a legal perspective CT must return all coins to the respective owners. Assuming it is still there. Your 'balance' is no more than a number in their database at this point.

Nah. Coins are not seen as securities or money by the authorities. It suits us in certain cases, like when filing tax income reports, but in cases like these we get no protection from the law.

Don't leave coin at exchanges folks.