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Cryptopia Users Hopeful After January Hack

By Rafał - 2019-03-08

Cryptopia is a cryptocurrency exchange that claims to enable users trade the widest range of cryptocurrencies. The exchange was hacked twice in January by the same hacker and has since been struggling to find its footing.
According to a recent release by the company, the holding balance from the January 14 pre hack would be used as a baseline for calculating rebates in the future.

Update: The read-only site is now live. The holding balance from the 14th Jan is pre hack and we will be using these holdings as a baseline for calculating rebates moving forwards.

— Cryptopia Exchange (@Cryptopia_NZ) March 5, 2019
Security failure of exchanges is not a rare occurrence in the cypto industry. What makes the Cryptopia hack remarkable was that the same hacker succeeded in stealing funds from the exchange twice.
Even though the company has reopened its site tentatively, it seems that the users of the platform would be fully reimbursed considering that the read-only site launched on March 5 showed the balance customers had prior to the hack.
In an earlier tweet, the Cryptopia management stated that the platform experienced a little delay in its attempt to re-launch on March 3. Users were reassured after the eventual launch two days later knowing that their lost tokens would be reimbursed.

Update: We are well aware of market volatility in Crypto, our next phase will be introducing cancel-only mode for users to cancel any positions accordingly before the trade engine is turned back on for trading. We aim to have this on the site in the next few days.

— Cryptopia Exchange (@Cryptopia_NZ) March 6, 2019
The January security breach affected 76,000 wallets resulting in the loss of tokens valued at $16 million by crypto experts. Some analysts though put the losses at more than $23 million.
The speculations are clearly due to the fact that the company didn’t make an official statement regarding how much it lost but admitted that approximately 9.4 percent of its total holdings were affected.
The Christchurch New Zealand based exchange was founded in 2014 by Rob Dawson and Adam Clark. It has a uniqueness of combining a crypto exchange, trading platform and marketplace.
Investors are routinely advised not to leave their tokens with exchanges for extended periods because they sometimes known to lack robust security despite being among the most profitable crypto investments.