Crypto Exchange Cryptopia Gets Hacked, Clients' Funds Stolen

New Zealand-based cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Cryptopia announced a security breach which resulted in a “significant loss.”

According to an official Tweet by the exchange, the hack took place on January 14. The exchange, however, did not post any figure for the loss incurred.

pic.twitter.com/0ZwqFfwwHi

— Cryptopia Exchange (@Cryptopia_NZ) January 15, 2019

The exchange has suspended all trading-related activities for an indefinite period.

“Once identified by staff, the exchange was put into maintenance while we assessed damage,” the official post by the exchange noted.

It has already notified New Zealand’s authorities and is working with the police and the country’s High Tech Crimes Unit to further investigate the security breach.

“Staff then notified and involved the appropriate Government Agencies, including NZ police and High Tech Crimes Unit who are jointly and actively investigating the matter as a major crime and they are assisting us with advice,” the exchange noted.

Cryptopia halted all activities since last 24 hours, and before officially admitting the breach, the exchange was calling it “unscheduled maintenance.”

We are currently experiencing an unscheduled maintenance, we are working to resume services as soon as possible. We will keep you updated.

— Cryptopia Exchange (@Cryptopia_NZ) January 14, 2019

“We are committed to getting this resolved as quickly as possible and will keep you all updated every step on the way,” it assured the users and the community.

Backlash from the Community

This is the first crypto exchange theft in 2019 and the crypto community raising questions on the exchange’s practices amid the hack, and some are even accusing it as a bear market “exit strategy.”

Interesting that this happens in a bear season where small exchanges are struggling to make ends meet and are aggressively messaging anyone involved with crypto projects to get them to pay listing fees to get listed on their platforms. pic.twitter.com/Vg44R4Dh5s

— WhalePanda (@WhalePanda) January 15, 2019

Exit scam in progress

— Cryptosaurus (@Cryptosaurusus) January 14, 2019

The timing of the breach also raises many questions, as it happened just before the commencement of Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term’s network upgrade to Constantinople.

Last time @Cryptopia_NZ updated @CoinMarketCap was 22 hours ago... #Hacked pic.twitter.com/T4CzvbFj4N

— CryptocurrencyWatchGroup (@CCWGR0UP) January 15, 2019