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Where’s My Money? Crypto Users Crusade To Claim Cryptopia Investments


www.cryptoglobe.com 19 January 2019 12:00, UTC
Reading time: ~2 m

In addition to navigating the fallout of a hack that siphoned an alleged $3.6 million out of the exchange, Cryptopia now has to deal with a growing number of users who are anxiously trying to recoup investments. Radio New Zealand reported nearly 40 people have come forward so far to try and get their money back.

Police in the country have been on the case ever since money was transferred out of the exchange to a mysterious wallet. Investors who logged on the next day were met with a short statement that indicated a security breach occurred.

Authorities have said the entire situation is “complex” and do not have any sort of timeframe about how long the investigation would take. The hack of the exchange is the first of its kind in the new year.

The days after the hack have been filled with rumors that it was an exit scam or some sort of an inside job. CryptoGlobe recently covered that some Reddit users are keeping tabs on wallets purportedly moving the stolen money around.

Concerns Abound With Cryptopia

Investor concern about Cryptopia extends beyond the mid-January hack. Radio New Zealand wrote about a lawyer in Christchurch who was approached by three people last year who said they could not take out funds and had issues with wallet transactions. 

Lawyer Clive Cousins said around 40 other people have spoken with him, purportedly with an eye towards launching a joint lawsuit. He said a legal case has stalled due to low funds, but clients still maintain an interest in figuring out what was going on.

Josiah Spackman, a cryptocurrency consultant, remarked that Cryptopia’s emphasis on lesser known cryptocurrencies has both helped and hurt the exchange. While a focus on cryptocurrencies seen as “up and comers” did help the exchange grow, it also meant less people were monitoring transactions on the exchange since the coins were not as popular.

Binance CEO Changpeng Zhao said he would block any wallets that have funds linked to the hack if they did appear on Binance.

Cryptopia Remains Somewhat Quiet

News from Cryptopia about the hack and subsequent investigation have been sparse since it occurred. The last tweet by the exchange came on January 16. It shared an official police update about the investigation.

Some Twitter users responded to the comments thanking the exchange for actually keeping people in the loop about the investigation. A few questioned about updates pertaining to withdraws and deposit timeframes. Others slammed the exchange for its lack of information, especially to those who have not had stolen coins.

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