Cryptopia exchange hacked

[Moore234]

This has been a major concern since crypto’s inception. Bitcoin (for example) is the most traceable currency ever created. The same public ledger that verifies all transactions also keeps a permanent record of each coins history.

Meanwhile cash is 99%+ fungible.

[Theb]

This tweet made me laugh and I think this tweet sums up the level of FUD Cryptopia being hacked will get, which is none. Cryptopia isn't even in the top 10 exchanges in terms of daily volume traded so why a lot of people are making a big deal out of it? It has been two days already since the hack happened yet there is no notable drops I have seen in the market.

[OrangeII]

This tweet made me laugh and I think this tweet sums up the level of FUD Cryptopia being hacked will get, which is none. Cryptopia isn't even in the top 10 exchanges in terms of daily volume traded so why a lot of people are making a big deal out of it? It has been two days already since the hack happened yet there is no notable drops I have seen in the market.

you're right, it's a pity when cryptopia must be hacked. but until now there has been no severe impact that has occurred with cryptocurrency. well, it's quite strange to see this. I hope this doesn't really have an impact in critical moments like i...

[Huskarls]

Can decentralized exchanges be the solution to prevent such hacks? Since centralized exchanges keep their money into a centralized location, it's lucrative for the hackers. But in decentralized exchanges, handling of money is controlled by the users and not kept in a centralized location. What do you guys think? Should we pay more attention to decentralized exchanges going forward?

Like the quote that we often see "No System Is Safe". This also certainly applies to decentralization that we know that this system is fairly new, so if we hope that there is a development of security, it is impossible. Maybe we can try let the people on those exchange have their own private key.

[laredo7mm]

This once again proves that it is not safe to keep your funds on the exchange. No one is protected, even the best and most reliable exchange can be hacked. Be careful.

not so much we store our assets in a stock exchange. indeed this is good because we can sell our assets at any time but now with many cases of hacking we must be more wise in saving our assets

[Spider A4]

I think this is not hacked, it's exist SCAM by cryptopia also many crypto enthusiast talking same thing. If already New Zealand police working with this case https://www.police.govt.nz/news/release/update-investigation-involving-cryptocurrency-company
Now we can just wait for the final news from police investigation.

[squatter]

Can decentralized exchanges be the solution to prevent such hacks? Since centralized exchanges keep their money into a centralized location, it's lucrative for the hackers. But in decentralized exchanges, handling of money is controlled by the users and not kept in a centralized location. What do you guys think? Should we pay more attention to decentralized exchanges going forward?

Decentralized exchanges have their limitations. For instance, they can't properly interface with fiat money, which always requires a trusted third party within the banking system.

The current crop of DEX can also be more properly described as "non-custodial" -- they don't hold user funds but they use centralized architecture. Etherdelta had its DNS registry updated by attackers, who set up a phishing site on their domain and extracted user private keys. That's one example of how vulnerable this semi-decentralized model is.

Overall, though, I'm guessing decentralized exchanges will eventually play a very important role. When we can trade on a completely decentralized architecture with decentralized stablecoins, it'll be a real game changer as well. We're probably several years away from that point.

[aoluain]

This tweet made me laugh and I think this tweet sums up the level of FUD Cryptopia being hacked will get, which is none. Cryptopia isn't even in the top 10 exchanges in terms of daily volume traded so why a lot of people are making a big deal out of it? It has been two days already since the hack happened yet there is no notable drops I have seen in the market.

I would have thought Cryptopia was a sizable exchange and at this stage
why have they not sufficient security in place to protect other proples
funds? Its not good enough really.

[yazher]

So that's why the price has fall again, Damn, just as we see a good sign a few days ago and now this is what happened. if something like this will continue. then probably in worst cases we will see a dramatic fall of price again. crytopia is one of my favorite exchange because of the less hassle and low transaction fee.

[figmentofmyass]

Ugh, can we ever get an exchange that allows you to have your own keys? EVER? Jesus fucking Christ, we only need more reasons to show people how things change.

there are decentralized exchanges like IDEX where users trade with their own keys. this is relevant here since most of the assets stolen from cryptopia were ETH and ERC20 assets.

Is there any word on whether or not the lost funds would be compensated to its users?

nope, not yet. if they go into bankruptcy, we've seen how that plays out with mt gox....

[HippiePyro]

Is there any word on whether or not the lost funds would be compensated to its users?

nope, not yet. if they go into bankruptcy, we've seen how that plays out with mt gox....

I thought mt. Gox had an escrow  repaying some of the users?

[cryptossi]

I know it's not a big exchange but it's not good for cryptocurrency, this and the 51% attack on ETC last week does not help improve the media and societies opinion on crypto which is already pretty low. I hope these hackers are happy with what they are doing, funds have been frozen by most exchanges that they have tried to transfer tokens to, but the sad thing is it creates more FUD and further reduces the market cap as it makes investors exit crypto entirely.

[SCheek]

I noticed this a while back when my ANON wasn't getting withdrawn. Centralised exchanges present a big problem for investor confidence

[HippiePyro]

Well they do largely defeat the original purpose of cryptocurrency, which is to maintain control of your money. Dex will make it just as easy to aquire and sell without this issue.

[BurgerCash]

Well they do largely defeat the original purpose of cryptocurrency, which is to maintain control of your money. Dex will make it just as easy to aquire and sell without this issue.

Still no-one actually wants to use DEX-es as the UX is not as polished as it is on Binance or Coinex, for example. Although both Binance and Coinex have announced that they'll be building DEX-es so who knows what would happen the next few years...

[bitcoinsc]

I want my bitcoins back. If the exchange goes live I'm withdrawing funds. It's in the hands of the athority now. So I'm not even sure if I'm getting my money. This is a nightmare I got 3/4 a Bitcoin in there. If btc dumps to 2500$ I'm gonna have a heart attack. That's a year of my savings.

[Theb]

~snip~

I would have thought Cryptopia was a sizable exchange and at this stage
why have they not sufficient security in place to protect other proples
funds? Its not good enough really.

Look its not always them to blame here. Just take a look at Japan and South Korea even though they have dozen of security requirements and compliance checks before they hand out their licenses to crypto exchanges some of them are still being hacked. Hackers are really going to extreme measures here just to steal your money, its always gonna happen not until they have some corporate bank level security going on in their exchanges expect that crypto exchanges to be hack regularly.

[figmentofmyass]

nope, not yet. if they go into bankruptcy, we've seen how that plays out with mt gox....

I thought mt. Gox had an escrow  repaying some of the users?

the case is still being handled by the bankruptcy courts in japan. it's pending civil rehabilitation. so, gox collapsed in february 2014, and almost 5 years later people are still waiting to get back a fraction of the coins they lost! that's brutal.

[Yamifoud]

I want my bitcoins back. If the exchange goes live I'm withdrawing funds. It's in the hands of the athority now. So I'm not even sure if I'm getting my money. This is a nightmare I got 3/4 a Bitcoin in there. If btc dumps to 2500$ I'm gonna have a heart attack. That's a year of my savings.

Do you mean that all your money are in Cryptopia exchange.? I'll doubt if you can get it back,  a lot of people were storing their money on there and could possible that the owner/team won't pay them and even given a share from.
Supposedly, you won't put all your money in just one exchange and I believe you are aware of that. It sad it have a less chances for your claims but you can just try.

[roughswap]

If for example Bitcoin did not get taken do you think the owners of the coins that dident get stolen would get them back,
i would think they would return the coins that remained if the owners of them wanted to withdraw them, there's a lot of talk of ether and Erc tokens being stolen,
also if they had certain account bitcoins in cold storage what do you think the result would be.