Cryptopia exchange hacked

[Jo.surf]

If someone is collecting customers for a lawsuit, i'm in.

[jemmy655]

It's quite unusual that even at this day and age, with a lot of techniques and new practice on safeguarding a platform, hackers are still able to get through even with the robust of security systems. I wonder how tight their security are and what their system admins do for the hackers to still find a vulnerability on the platform. Also, this stresses the age-old question of whether to keep your funds in an exchange or not, and the answer is laid right before our eyes every time a theft occurs.

"Robust security systems"? I wont call it that. What I see is an over complicated processes (validations, verification, etc) yet resulting to know where but just to give an impression that the system is secured. Many important things to look out for were ignored e.g
1. System should production ready before allowing users pump their funds.
Most hacks are done internally i.e stage managed. This is so bad

[Zer0Sum]

Also, this stresses the age-old question of whether to keep your funds in an exchange or not, and the answer is laid right before our eyes every time a theft occurs.

This is an "age-old question" only for people too lazy to trade or do basic risk analysis...
But the upside of expert crypto trading is orders of magniitude greater than the very limited counterparty risk.

https://www.coindesk.com/hacked-crypto-exchange-cryptopia-files-for-us-bankruptcy-protection

Here we go...
Didn't take long for Southern District of New York to be involved...
You start with a bankruptcy and run a concurrent criminal investigation on these Cryptopia asshats.

Oh look, Grant Thorton's initial report is out:

https://cointelegraph.com/news/liquidators-of-hacked-cryptopia-exchange-release-report-note-42m-owed-to-creditors

https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/first-liquidators-report-31-05-2019.pdf

"At the date of liquidation, (Cryptopia) had over 2.2 million registered users worldwide and employed 37 staff"...
lol, nothing to see here this was just a "hobby"... but wild guess they had 200,000 US Customers... you can run, but you can't hide.

The $4.2 million "owed to creditors" is just business expenses...

*** The value of coins UNLAWFULLY SEIZED in January 2019 by Cryptopia management from Customers...
Cannot be addressed because you have to synch 100s of blockchains and sell a mountain of shitcoins ***...

The logistics of this means Customer payouts of any kind probably never happen...
But we will see US Grand Jury indictments... as "the wheels of justice turn slowly, but grind exceedingly fine".  

[bobcaticus]

They pulled the plug on the discord.   Where's the new stitch-n-bitch site?

[TheBeardedBaby]

Is there any way to check what people had on the exchange? I think I widraw everything from there but something keep me thinking that I still have (had) something.
So the site is down for quite some time now.

[roughswap]

Any news on if people with CLM tokens will get any reimbursements or money back things seem a bit quiet apart from the news saying they accessed the database again.

[mr.relax]

Nobody of the customers will get anything back.
Say goodbye to your funds

[crypto_trader#43xzEXrP]

Hey, what about withdrawals? Why site of CRYPTOPIA EXCHANGE - not working?

[RivAngE]

Hey, what about withdrawals? Why site of CRYPTOPIA EXCHANGE - not working?

Just how long have you been away?
Hacked - They did a haircut on their customers - They opened but no one was happy with the haircut and their slow speed - They closed again seeing that no customers are coming back.

Also, most of the volume you see in most exchanges is fake, so it's not as easy as it may seem to get enough people trading on their platform and to make their business profitable.

[Cobgoblincave4]

Nobody of the customers will get anything back.
Say goodbye to your funds

The liquidators have already pulled NZ$955,618 in their own fees from this exchange. Good to see someone calling them out on it as no one who had tokens lost on the exchange have been compensated yet.

GNY Issues Notice to Grant Thornton Over Cryptopia Liquidation

https://www.gny.io/post/gny-issues-notice-to-grant-thornton-over-cryptopia-liquidation

On 14 January 2019, GNY lost over 15 million LML tokens on the Cryptopia Limited crypto currency exchange in New Zealand following a hack on the exchange. The tokens were stolen from what was described as a secure server run and managed by Cryptopia. The hack resulted in the crash of the price of LML tokens listed elsewhere, losing over 95% of its market value. The stolen tokens, now in decentralised exchanges in unknown jurisdictions, are beyond recovery.

On 15 May 2019, Cryptopia went into liquidation. David Ruscoe and Malcolm Moore, of Grant Thornton New Zealand, were appointed as liquidators.

On 21 July 2020 GNY issued a notice to the liquidators under sections 285 and 286 of the Companies Act 1993 alleging that they have failed to comply with one or more of their duties.

 
In the notice GNY alleges that:

· The liquidators have failed to accept or reject GNY’s claim despite having all the information requested from GNY.

· The liquidators did not accurately describe GNY’s claim to the Court. Nor have they reflected GNY’s claim in their liquidation reports.

· The liquidators have failed to investigate the Hack and how the company’s security systems failed. GNY considers this investigation should be separate from the police investigation underway which seeks to determine criminal liability.

· The liquidators’ recent liquidator report fails to adequately explain the work they have undertaken for their fees. Over the 15 November 2019 to 14 May 2020 period, the liquidators have incurred NZ$955,618 in fees.

 
GNY is concerned that the total of the liquidators’ fees and other expenses in the liquidation have consumed more than half of the receipts in the liquidation to date. These costs continue to mount at the expense of creditors (like GNY) whose claims have not been accepted or engaged with, in GNY’s view, adequately. The liquidators have paid themselves over NZ$1.7m in this liquidation.

GNY have concerns about the liquidators’ handling of this liquidation, and consider the process to have been deeply flawed as set out in the notice. It is for this reason that GNY has issued a notice of failure to comply. As things stand, any final report from Grant Thornton, will almost inevitably give grounds for appeal. The liquidators have 5 business days to respond to GNY’s notice.

Full copy of the legal notice:  https://download-files.wix.com/_api/download/file?downloadToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpc3MiOiJ1cm46YXBwOmU2NjYzMGU3MTRmMDQ5MGFhZWExZjE0OWIzYjY5ZTMyIiwic3ViIjoidXJuOmFwcDplNjY2MzBlNzE0ZjA0OTBhYWVhMWYxNDliM2I2OWUzMiIsImF1ZCI6WyJ1cm46c2VydmljZTpmaWxlLmRvd25sb2FkIl0sImlhdCI6MTU5NTMzNDQ4NCwiZXhwIjoxNTk1MzcwNDk0LCJqdGkiOiI0NzExNDVlMTgzODAiLCJwYXlsb2FkIjp7InBhdGgiOiIvdWdkL2NkZGYzMl80ZDZhODczODY4NTc0ODhiYTIzZjNiOGNiYzRkMzU1OC5wZGYiLCJhdHRhY2htZW50Ijp7ImZpbGVuYW1lIjoiQ2hhcG1hbiBUcmlwcCBsZXR0ZXIgMjEgSnVseSAyMDIwLnBkZiJ9fX0.k1mZTA5FHb0beOhqdRC8k53E0uAeqyh-DXj55JiaVDc