Cryptopia Endures Significant Losses Due To A Massive Hack

Girish Chugh

February 28, 2019 11:44 am

Crypto Hack

Cryptopia Endures Significant Losses Due To A Massive Hack
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New Zealand based cryptocurrency exchange, Cryptopia, recently published multiple tweets about the losses endured as a result of the hacking attack occurred in January this year. It read, “We have calculated that worst case 9.4 percent of our total holdings was stolen.”

Protection Of User Wallets

Cryptopia, a crypto exchange based in Christchurch, explained that it is “continuing to assess the impact incurred as a result of the hack.” However, the exchange didn’t mention the magnitude of the theft in fiat currency terms.

The trading platform revealed the news about the hacking on January 15, but the exact details about the cyber attack still remain undisclosed. The exchange has so far kept the information about the incident private, which hasn’t helped their distressed customers.

However, the data analytics company, Elementus, calculated that the hackers managed to rob $16 million worth of ethereum and ERC20 tokens. According to the company, the theft was “weird” as it involved a series of small transfers targeting individual wallets. Usually, hacks take place as one-time events, with hackers taking advantage of a vulnerability and then straight away try “to launder the money in one shot.”

Despite police intervention, the hackers didn’t stop and kept attacking Cryptopia. $181,000 worth of ethereum was stolen from around 17,000 wallets. Elementus believes that there might be future possibilities of such incidents, with other attackers imitating the technique to evade detection.

Cryptopia, through a string of tweets published on February 27, said:

“We’re securing each wallet to ensure the exchange is fully secure when we resume trading. As a result of new wallets please refrain from depositing any funds into old Cryptopia addresses.”

More updates from the Christchurch-based exchange will be provided soon.

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