Cryptopia exchange hacked

[digit]

Everyone suffers the a haircut on their balance

Based on discord

BTC = 14% Haircut
LTC = 43% Haircut
ETH = 100% Haircut

And based on this figure they lost more than ETH and ETH tokens.

Trading resumed in some market but still NO WITHDRAWAL

My mistake guys, unfortunately you are both right...
So we get a haircut instead of compensation? Nice strategy, will keep a lot of us there when they start working normaly...

The lost funds are replaced with the CLM token as a loss marker. The exact method of how this will work they haven't announced yet.

its not a lost marker, its a token representing the NZD value of the coins at the time of the hack.  a loss marker would be a token that is equal 1:1 to the actual crypto that was stolen.  eg: 1 CLM_A = 1 LTC, 1_CLM_B= 1 ETH.

[digit]

The lost funds are replaced with the CLM token as a loss marker. The exact method of how this will work they haven't announced yet.

That's B****hit.
If clients get their hands on their lost balance as a single token (CLM) all at the same time,
its price will decrease drastically after the obvious "sell race™" that users will do to get their preferred "exit coin".

I still prefer the 100% free haircut over an ECR20 token.

u could take a gamble that Cryptopia will save itself and those CLM will be bought back by them one day.  

their communication has been bad but overall the way they have handled the situation so far has good.  they are facing up to their obligations to customers, its not perfect but its better than the alternative.

[figmentofmyass]

The lost funds are replaced with the CLM token as a loss marker. The exact method of how this will work they haven't announced yet.

That's B****hit.
If clients get their hands on their lost balance as a single token (CLM) all at the same time,
its price will decrease drastically after the obvious "sell race™" that users will do to get their preferred "exit coin".

it'll probably get dumped hard as soon as the CLM market opens. the same thing happened with the BFX token when bitfinex issued it. the people running for the exits will all dump immediately. but after that it'll probably recover significantly. despite the urge to dump, i'd probably try to hold for better days and focus on my liquid capital. if they make a couple of small (~1%) payments in the first couple months, people will regain a lot of faith and the CLM market may pay off over time.

[condoras]

The lost funds are replaced with the CLM token as a loss marker. The exact method of how this will work they haven't announced yet.

They replace them to all the users? Because i don't see any CLM tokens in my balance...

their communication has been bad but overall the way they have handled the situation so far has good.  they are facing up to their obligations to customers, its not perfect but its better than the alternative.

It's true that they didn't act as well as they possible can, at least in terms of communication with us.
Indeed the reopening is good news but it would have been better, if it were operating normally and not in "View Only" mode.

[ulhaq]

The e-mail they sent was disgusting. Not even a single apology in it. It's as if they think they did nothing wrong, when their incompetence was extreme. I got the impression from the email that they want to go on as if it's business as usual. And they don't care about the customers. Did anyone else get this impression? I am not going to use cryptopia for any trading.

[pinoycash]

The e-mail they sent was disgusting. Not even a single apology in it. It's as if they think they did nothing wrong, when their incompetence was extreme. I got the impression from the email that they want to go on as if it's business as usual. And they don't care about the customers. Did anyone else get this impression? I am not going to use cryptopia for any trading.

What can you expect, They been silence for almost 2 months and in those day's not a single apology from the CEO of cryptopia.

Right now they are probably afraid of the mass exodus when they open the withdrawal of the top cryptocurrency.

[bobcaticus]

The e-mail they sent was disgusting. Not even a single apology in it. It's as if they think they did nothing wrong, when their incompetence was extreme. I got the impression from the email that they want to go on as if it's business as usual. And they don't care about the customers. Did anyone else get this impression? I am not going to use cryptopia for any trading.

What should they apologize for? 

That some shitty dev made some shitty code that got exploited?
or that you left your coins on an exchange and not in your private wallet?

I think they handled this quite well. 

[Oilacris]

The lost funds are replaced with the CLM token as a loss marker. The exact method of how this will work they haven't announced yet.

That's B****hit.
If clients get their hands on their lost balance as a single token (CLM) all at the same time,
its price will decrease drastically after the obvious "sell race™" that users will do to get their preferred "exit coin".

I still prefer the 100% free haircut over an ECR20 token.

Sell race would definitely happen specially into these kind of situations but surely later on that token will gradually increase it price.So,holding it for sometime might really be worthy if you aren't
on a rush nor panicked to sell out directly once its compensated.

They are really trying not to ruin their business as best as they can and I can really see their efforts.

[ulhaq]

The e-mail they sent was disgusting. Not even a single apology in it. It's as if they think they did nothing wrong, when their incompetence was extreme. I got the impression from the email that they want to go on as if it's business as usual. And they don't care about the customers. Did anyone else get this impression? I am not going to use cryptopia for any trading.

What should they apologize for? 

That some shitty dev made some shitty code that got exploited?
or that you left your coins on an exchange and not in your private wallet?

I think they handled this quite well. 

People have responsibility to secure their coins, but companies have responsibility for security. Are you saying that companies have no responsibility for security?? You rely on security for every company you interact with.

[bobcaticus]

Risk Management.  

You've done your due diligence:  unique email/pass, 2FA, VPN. 

No such thing is "safe".

There are only 2 types of companies: those that have been hacked, and those that will be hacked.

[RivAngE]

Risk Management.  

You've done your due diligence:  unique email/pass, 2FA, VPN. 

No such thing is "safe".

There are only 2 types of companies: those that have been hacked, and those that will be hacked.

And then there are those which are not worth bothering to hack!
I think Cryptopia might pass from all those 3 types eventually!

[squatter]

Risk Management.  

You've done your due diligence:  unique email/pass, 2FA, VPN. 

No such thing is "safe".

There are only 2 types of companies: those that have been hacked, and those that will be hacked.

Pretty much. All exchanges will be hacked, and some will be hacked beyond recovery or ability to compensate. When I got into Bitcoin years ago, one would have expected Cryptopia to simply disappear in a situation like this -- like Cryptsy and others did. Cryptopia probably could have handled things better PR-wise, but people should be happy they're getting anything back at all. The alternatives are Gox, Cryptsy, etc.

[bobcaticus]

Risk Management.  

You've done your due diligence:  unique email/pass, 2FA, VPN. 

No such thing is "safe".

There are only 2 types of companies: those that have been hacked, and those that will be hacked.

And then there are those which are not worth bothering to hack!
I think Cryptopia might pass from all those 3 types eventually!

I was a locksmith for many years before i got into infosec:

The average thief will spend 5 minutes trying to break into a home.   If they fail, they move to the next house.

HOWEVER.

If they want to get in - they are going to get in.


The same holds true with crypto.

[harizen]

Ok so it will turned out as Bitfinex 2.0 wherein the compensation will be tokens. The reason also I stopped using that exchange.

GG Cryptopia. I worked so hard for those tokens of mine on your platform. Thanks anyways I got decent profit out of it but still lots of left. No choice but to accept the compensation better than nothing although Im really truly disappointed to the process.

[adamvp]

indeed, better little compensation than nothing.
And most important thing should be cryptopia will survive.. there is no other 3rd class coins exchange like cryptopia :|


Sorry seems to me posting in cryptopia hack event thread - I think we should focus ther bout hack thing at most (not bout cryptopia future)

[figmentofmyass]

Ok so it will turned out as Bitfinex 2.0 wherein the compensation will be tokens. The reason also I stopped using that exchange.

at least it sounds like there will be a market for these CLM tokens. so anyone who wants to dump them and run can do so. as an alternative, those who believe cryptopia will be viable can buy the CLM tokens cheap and either flip them for profit or wait for repayment.

it worked for bitfinex......cryptopia isn't as attractive from a volume/prestige standpoint but the losses appear to be much smaller than bitfinex too.

[xtraelv]

The lost funds are replaced with the CLM token as a loss marker. The exact method of how this will work they haven't announced yet.

They replace them to all the users? Because i don't see any CLM tokens in my balance...

They are only issued to those that have an affected coin. They also still haven't completed the audit and transfer to new wallets addresses for all the coins.

[RivAngE]

Ok so it will turned out as Bitfinex 2.0 wherein the compensation will be tokens. The reason also I stopped using that exchange.

at least it sounds like there will be a market for these CLM tokens. so anyone who wants to dump them and run can do so. as an alternative, those who believe cryptopia will be viable can buy the CLM tokens cheap and either flip them for profit or wait for repayment.

it worked for bitfinex......cryptopia isn't as attractive from a volume/prestige standpoint but the losses appear to be much smaller than bitfinex too.

I don't know how trustworthy Bitfinex's or any exchange's volume reports are.
I know the webpage visit rate is not a precise compare tool, but for an exchange which was reporting about 10 times more volume than Cryptopia (not sure of the exact number), Bitfinex didn't have any different traffic compared to Cryptopia.
https://www.similarweb.com/website/cryptopia.co.nz?competitors=bitfinex.com

I'd like to see older data but unfortunately I can only see that since September, Bitfinex and Cryptopia had the same amount of visitors. Now how big amounts was each visitor trading... is something we can't know for sure.

[mr.relax]

Finex needed or maybe still needs high volume from traders.
You had or have to deposit huge amounts.
Their Wallets are known.
https://bitinfocharts.com/de/bitcoin/wallet/Bitfinex-coldwallet
Only in this wallet Bitfinex holds more than 400Mio Dollars...


Its not a shitcoinexchange where you trade in microBTC-sizes.
So the comparing of Networktraffic wont show comparable traded volumes.
Buying/selling 20BTC is nothing at Bitfinex.
At Cryptopia, you are a whale with 20BTC.

[squatter]

I don't know how trustworthy Bitfinex's or any exchange's volume reports are.
I know the webpage visit rate is not a precise compare tool, but for an exchange which was reporting about 10 times more volume than Cryptopia (not sure of the exact number), Bitfinex didn't have any different traffic compared to Cryptopia.
https://www.similarweb.com/website/cryptopia.co.nz?competitors=bitfinex.com

That's probably not the best metric. IIRC, Cryptopia supported close to 1,000 coins, most of which were very low volume. They probably have lots and lots of tiny traders who are trading altcoins.

Bitfinex has much thicker order books. We can also see that much larger traders use it -- they make large market orders and set up walls on the order book. Bitfinex could easily be inflating their volume but I'm pretty sure it's still much bigger than Cryptopia. Even little fish like me avoid Cryptopia because I can usually get a better price on a bigger exchanges.