Cryptopia Is No More

Cryptopia Is No More

Cryptopia has been declared dead. Probably the largest New Zealand-based cryptocurrency exchange failed to recover from the brutal attack it suffered in January.

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Cryptopia has been declared dead. Probably the largest New Zealand-based cryptocurrency exchange failed to recover from the brutal attack it suffered in January. The marketplace has already stopped operations and has appointed authorized liquidators.

Earlier this year, Cryptopia was unfortunate enough to join the long queue of compromised exchanges. It turns out the hack was way too serious for Cryptopia to handle. Last week, the exchange posted a message, informing its users all trade has been suspended.

“Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was, in the best interests of customers, staff and other stakeholders. The liquidators are focused on securing the assets for the benefit of all stakeholders. While this process and investigations take place, trading on the exchange is suspended,“ the statement reads.

The marketplace is no longer available for trade as liquidators have been out in charge of the remaining assets. From now on they’ll take care of Cryptopia’s assets as they have to properly manage them in order to minimize the losses caused by both the attack and the shutting. Liquidators will determine the obligations Cryptopia has to its shareholders and customers.

The liquidators are also working with independent experts and the relevant authorities with regards to the company’s obligations.”

When the attack took place in January, the bad actors reportedly managed to steal approximately $16 million worth of cryptocurrency. The security breach effectively forced the exchange offline for a couple of weeks. While Cryptopia never confirmed the actual loss, it clarified that almost 10% of its total holdings have been wiped out.

It was March when Cryptopia renewed its trading platform, however, this time supporting only 40 digital assets. Prior to the attack, the exchange supported over 500 digital assets, thus being one of the most popular markets for altcoins.

Cryptopia warns:

“Given the complexities involved we expect the investigation to take months rather than weeks. […] Grant Thornton will be contacting all customers and suppliers about its appointment in the next few days.”