Hack or Exit Scam? Cryptopia Users’ Millions of Dollars at Risk of Loss

Cryptopia hacked

Hack or Exit Scam? Cryptopia Users’ Millions of Dollars at Risk of Loss

Cryptopia exchange has reported a security breach and incurring significant losses, sparking the speculation of this being an exit scam as just a day before more than 19k ETH and 48 million CENNZ has been moved to unknown wallet.

Fading Exchange Making an Exit Scam?

New Zealand-based cryptocurrency exchange Cryptopia took to Twitter to announce that they have suffered a security breach. The exchange first reported about it the day before yesterday that it has been under unscheduled maintenance,

“We are still experiencing unscheduled maintenance. Our team is working hard to resolve this and we will provide an update soon.”

However, a day passed and the exchange has been still down. That’s when the exchange reported a security breach.

On January 13, the exchange first reported unscheduled maintenance. Yesterday, the exchange revealed that the security breach has resulted in “significant losses.” The breach was, as reported by Cryptopia has been identified by a staff member and now it is working the local police force and government agencies to resolve the issue.

The local police reported,

“A significant value of crypto-currency may be involved and Police are taking this very seriously. We are currently talking to the company to gain a further understanding of what has occurred. A dedicated investigation team is being established in Christchurch including specialist police staff with expertise in this area. Police are also liaising with relevant partner agencies in New Zealand and overseas. The investigation is still in its very early stages and police are unable to provide further information tonight.”

The news of Cryptopia being hacked got the crypto community talking as the crypto trader, investor, and venture capitalist, Crypto Squeeze conducted a poll to know its impact.

Just yesterday, the exchange website was showing the maintenance sign and to be back soon and now it has updated it with the security breach announcement.

According to Coinmarketcap data, the exchange has over 800 active markets with the trading data updated about 52 hours back. Over the time, the trading volume of Cryptopia exchange has dwindled as shown in the data provided by Coinlib.

Source: https://coinlib.io/exchange/cryptopia

Crypto Squeeze yesterday called out an exit scam on Cryptopia.

On January 13th while the exchange was undergoing maintenance, Whale Alert reported the transfer of 19,391 #ETH (2,438,152 USD) and 48,029,306 CENNZ (1,176,596 USD) from Cryptopia to an unknown wallet.

This calls into questions these big transfers made on Sunday while the exchange reported having unscheduled maintenance on the same day. The big transfer of funds, maintenance, and the hack could be separate events. But the fact that the company announced the hack on Tuesday when it actually occurred on Monday puts a twist to the situation.

Whale Panda, a popular Bitcoin advocate also took to Twitter to share the fact that over the time the exchange has become irrelevant. According to the Similar Web data, the Cryptopia exchange website registered 8.5 million visitors in July 2018 that shot down to about 5 million in December 2018.

At this point, the police are investigating about which the officials will be updating soon while the exchange says, “We are unable to update anyone at the moment as it’s now a police matter.”

Summary
Hack or Exit Scam? Cryptopia Users' Millions of Dollars at Risk of Loss
Article Name
Hack or Exit Scam? Cryptopia Users' Millions of Dollars at Risk of Loss
Description
Cryptopia exchange has reported a security breach and incurring significant losses, sparking the speculation of this being an exit scam as just a day before more than 19k ETH and 48 million CENNZ has been moved to unknown wallet.
Author
Publisher Name
Coingape
Publisher Logo
Show Comments
Anjali Tyagi 438 Articles

Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.

Follow Anjali @