Hacked Cryptopia Exchange Might Reopen in February According to New Zealand Police Reports

Police officers investigating the hack of Cryptopia have surprised investors recently as they affirmed that the company might start to work again within the new few weeks. Such a quick recovery was very unexpected as the crypto exchange was hacked on January 14 and it lost over $20 million USD worth in cryptos.

Soon after the money was stolen, the crypto exchange decided to enter “maintenance” and everybody was unable to use the platform. At the moment, the “maintenance” continues as the police investigate the hack.

However, soon after an email from the police surfaced, it was affirmed that the exchange will be back on its feet sometime in February. The letter describes the investigations as “complex” and it does not state whether the funds that were stolen from the clients will actually be given back to them or not, which is mostly their fear at the moment.

The Exchange Was Hit Twice

Things got an even bleaker course after the exchange was hit by hackers by the second time, though. According to the official police reports, 5,240 wallets were hacked this time and around $180,000 USD worth of Ethereum (ETH) was stolen by the criminals this time.

It looks like Cryptopia has almost fully lost control of the situation as the hack, which occurred on January 28, took most of the day and it was done by the same thief. Some people are currently speculating that the exchange does not have the keys to its wallets anymore and that they belong to the hacker now, which is simply the worst case scenario in a situation like this one.

Because of this, some people, unaware of what may have happened, used the addresses provided by the company, which led them to lose their funds, which were stolen by the hacker.

Customers Are Right To Be Concerned

Even with the police stating that the company is set to open its doors again in the next few days, people are obviously still very scared of what may happen. Crypto tax specialist Campbell Pentney has talked about the issue with Newsroom.co.nz and affirmed that people are right to be afraid.

According to the law expert, the hacker is still taking the funds, which suggests that the exchange may have completely lost control of their own crypto wallets and this raises several concerns on whether these funds will ever be retrieved.

In situations like this one, the expert affirms, nobody knows how to trust and the company does not communicate very well with its customers, which causes a severe lack of trust and everything is treated with skepticism.

Publication date: 
02/05/2019 - 08:11
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