Cryptopia, a New Zealand cryptocurrency exchange is again in the middle of a controversy after reportedly getting hacked while under liquidation. The hacking incident happened on Feb. 1
Allegedly, the affected wallet is a dormant wallet that belongs to Stakenet, a blockchain business. The cold wallet has around $1.96 million worth of XSN, Stakenet’s native token, and has been dormant since January 2019. According to a report by Stuff.co.nz, the hackers were able to get away with NZD 62,000 ($45,000) from the crypto exchange.
Cryptopia is currently in liquidation under the watch of Liquidator Grant Thornton.
In a statement, Stakenet’s spokesman commented on the incident:
“We had no prior warning of any intended movement, so naturally, we immediately contacted [liquidator] Grant Thornton, who is supposed to be in control of these assets and in charge of redistributing them back to their rightful owners.”
The spokesman also added that Grant Thornton should explain the whole incident and why it was not prevented from happening.
“If this unauthorized transaction has happened under Grant Thornton’s watch, then they need to explain to the users why they failed to secure… [their] assets like they were supposed to do and how someone was able to access them.”
On January 15, 2019, Cryptopia suffered a major blow after it had fallen victim to a security breach. The hackers have stolen $11 million worth of cryptocurrencies from the exchange. Despite its effort to resume operation, the exchange was forced to undergo liquidation in May 2019. David Ruscoe and Russell Moore from the accountancy firm Grant Thornton were appointed as liquidators for Cryptopia at that time.
On De. 9, 2020, Grant Thornton has announced that Cryptopia users can finally file their claims through a portal.
Cryptopia was founded by Rob Dawson and Adam Clark in 2014. They launched their own crypto exchange due to their negative experiences with other exchanges. The exchange has 300,000 accounts all over the world at the time of its hacking.
Security breaches have been a major problem for crypto exchanges worldwide. Kucoin, a Singapore-based crypto exchange was hacked on September 25, 2020. Fortunately, it was able to recover 84% of the total crypto stolen from its platform. The Kucoin hacking incident was one of the largest security breaches in the entire crypto history. Binance, Bithumb, Poloniex, and Upbit were just a few of the exchanges that have fallen victim to these vicious hackers. Hacking remains to be one of the reasons behind the closure even of major crypto exchanges.