It is another sad day for users of New Zealand based crypto exchange Cryptopia as more funds have been drained today 29 January after the January 14 hack. Another total 17 thousand wallets have been drained of Ethereum adding up to $180 thousand.
Withdrawal of funds continues
The report added that the withdrawal of funds lasted all day yesterday Monday 28 January but it wasn’t clear where the funds were going until almost 10:00 pm when it was confirmed that they were being withdrawn by the hackers as they moved all the withdrawn funds from an Ethereum address 0x3b46c790ff408e987928169bd1904b6d71c00305 to the one that currently holds the previously stolen $16 million.
Elementus had published another article last week giving a detailed analysis of stolen funds in different crypto assets from the exchange. The article also revealed details of the timeline when the funds were stolen. Describing the hack as unusual, the analysis indicates that only a breach in smart contract codes or access to credentials by unauthorized individuals could lead to such a hack and even so, the exchange would have discovered it soon enough to battle the thieves.
Part of the article also warned that more wallets may be in danger as the stealing continued for days the first time. Alas, fifteen days after, the hackers have commenced draining of wallets again and unfortunately, more funds have been added in the wallets. A total of about 7,000 wallets were affected this time and apparently the thieves will return unless they are caught.
Why the repeated withdrawals?
It is likely that Cryptopia is no longer in control of the private keys but the thieves are. This gives them the power to drain wallets at will. The question is why do Cryptopia users keep depositing funds in their wallets when this is going on? Could it be they are not aware of even the previous hack?
Meanwhile, the police released an update on the case that indicated investigations had commenced but there were no leads to the thieves and no timeline for getting them arrested. The police may have to put in more efforts to get these people because obviously, they won’t stop as long as more funds are being deposited.
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A cryptocurrency enthusiast, author, and investor with high motivation in cryptocurrency/blockchain research and writing. He loves birdwatching and traveling. Follow him on Twitter at @Ponvangbu