Over the last one year, the number of cryptocurrency exchange platforms that have been hacked has increased significantly. One such platform that was hacked in January this year is Cryptopia. One such exchange whose operations were greatly affected by the unfortunate incident is Cryptopia.
Cryptopia Halts All Trading Operations
On Wednesday last week, Cryptopia’s management team told the press that the company has decided to halt all trading operations. They also stated that the exchange platform would now be under a liquidator, Grant Thornton New Zealand.
An official tweet from the company shortly after the press briefing confirmed that the company was going into liquidation. Notably, the website went under maintenance yesterday and surprisingly thousands of cryptocurrency traders who use the platform were not notified in advance.
Some of the users went on Redditor asking other users if they were able to access the site from their end. Some even suspected that the exchange platform had been hacked again.
Shortly after the hacking incident, Cryptopia went offline for several weeks and only resumed operation the following month, February. The security breach resulted in loss of cryptocurrencies worth thousands of dollars. One of the blockchain data analytics firms that followed up the case has since revealed that Ether worth $16 million and hundreds of ERC-20 tokens were stolen by the hackers.
Even after resuming operations, the exchange platform still had glaring bank issues that discourage a majority of existing traders to use the platform. In a recent interview, Grant Thornton stated that the hack had a major negative impact on the company’s ability to stay afloat.
The management efforts to revamp the business and secure its profitability seem to have bared no fruit as the company is currently at liquidation phase. Two senior executives working at Grant Thornton, Russel Moore and David Ruscoe, will set up a team that will help the exchange platform to secure its assets.
As investigations continue, all trading processes on the platform have been suspended. When asked about how long the investigation would take, Grant Thornton stated that due to the complexity of the investigations, it would take months.
Following this announcement, thousands of cryptocurrency traders who used the platform and had assets in their accounts expressed their frustration on Twitter. One of the concerns is that they have not been able to withdraw their fund since the hacking incident occurred. Some are calling for creditors to join hands and file a case in court.
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