Hacked Cryptocurrency Exchange Cryptopia Goes Into Liquidation

Homepage of Cryptopia website on the display of PC

Cryptopia, the Christchurch- based cryptocurrency exchange has been placed in liquidation after attempts to re-open the business failed. The New Zealand based digital assets exchange had suffered a major hack back in January. The exchange lost millions of dollars due to a security breach that took place in January, before Cryptopia publicly announced the hack, the exchange tweeted about experiencing ‘unscheduled maintenance,’ and that was perceived as a red flag by the users.

The news came after the exchange’s website went down for hours, raising speculations about another potential hack. It was first noticed by a Redditor who asked whether the exchange had been hacked again. Cryptopia gave their users the same explanation for the prolonged downtime as they did last January following the hack.

“Don’t Panic! We are currently in maintenance. Thank you for your patience, and we apologize for the inconvenience.” – announced Cryptopia which inevitably prompted speculations about another hack.

It was announced the exchange had been working with the New Zealand Police to try to work out who the hacker is and where the cryptocurrency has gone, but their investors were reported to have been frustrated by the lack of information. The news was announced on Wednesday by Cryptopia’s assigned liquidator, professional services firm Grant Thornton in New Zealand, which was later confirmed on the exchanges twitter as well as on their website.

David Ruscoe and Russell Moore from Grant Thornton will help Cryptopia secure its assets “for the benefit of all stakeholders,” according to today’s announcement. “While this process and investigations take place, trading on the exchange is suspended,” Grant Thornton said, adding that the complex investigation will take “months rather than weeks.”

“Police continue to investigate the unauthorised transfer of crypto-currency worth a significant sum from Christchurch-based crypto-currency trading company Cryptopia on 13-14 January 2019.” – stated Grant Thornton.

David Ruscoe continued, “We realise Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders.” Grant Thornton is expected to file an initial report on the case next week on the New Zealand Companies Office website.