Cryptopia opens portal to claim losses

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(Edited)

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In January 2019, the New Zealand exchange Cryptopia was hacked and then shut down only to re-open for a little over a week and then shutdown again.

Cryptopia hired the liquidation firm Grant Thornton to organize and handle the closing of the exchange and the distribution of assets. Early on it was looking pretty dire for users of the hacked exchange, but the courts ruled that customer's tokens were considered an asset and cannot be used to pay off creditors. This was good news for users as it means they will receive at least some portion of their tokens back.

If you had tokens on Cryptopia during the hack, they are now taking information to return the tokens that were lost, or some portion of them.

You should have received an email similar to this one if you had tokens on the exchange during the hack.



While there is an opportunity to get your tokens back, there are some really sketchy things about the way this is being handled and the security of your private information. The exchange at the time did not require KYC information, but to return your funds you will be required to provide full information. The concerning issue is what will be done with that information.

"I acknowledge that, for the purposes of operating the Portal, Cryptopia Limited (in liquidation) may disclose my personal information to foreign persons or entities that may not be required to protect the information in a way that, overall, provides comparable safeguards to those under the New Zealand Privacy Act (as described further in section 4 of the privacy policy). I authorise Cryptopia Limited (in liquidation) to make these disclosures."

While there is no question the information will be passed on to your government tax collection agency, the wording in the portal sounds like that may not be the only people with access to this information.

I suspect the liquidation company will be no more effective at protecting your information than Ledger.


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To be eligible for reimbursement you need to be able to supply transaction ids of your transactions to the exchange and other information that you may not be able to figure out without access to your account on Cryptopia. They are not being helpful in providing any information they request on their end resulting in many users not being able to request their tokens back.

I have noticed on Reddit many users who have provided correct information are instantly getting locked out of the process and told they have to wait 2 weeks before being able to have it reviewed.

Even if you have all the information and provide it all to them, there is a good chance you won't get anything back due to the hoops they are requiring people to jump through and the difficulty they are making communication. If you had a significant amount of money there, it's worth trying to get it back.

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13 comments
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It's just like giving people false hopes on getting back their tokens. I think it's a pretty smart idea of not refunding those tokens back to people.

Moreover, is it possible for them to sell out the information they receive??

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They are scaming us the information they asked very tough to provide.
Why they don't allow us to withdraw funds directly.

They are playing with our money.

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Yes, its a bit rude requiring victims to provide KYC when it wasn't required when they were customers. This is probably not even required by law, just the liquidators being overly cautious.

In the #cryptoclassaction I'll be arguing strongly that compensation should be paid directly and automatically to affected crypto wallets without KYC or even registration.

People who have suffered a crime should not have to lose their privacy to be compensated.

By having compensation directed by Court orders KYC can be avoided as KYC laws don't apply to Courts or lawyers following Court orders.

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Wow, that is pretty crappy that they are giving people this glimmer of hope and then just shutting them down again. I am glad I haven't been the victim of one of these instances. I am also happy that I have read about enough people not being so lucky that I do my best to keep my crypto off of exchanges now.

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this is just sad. It's like you make fun of those who "believed" and had their money there. And they are asking them for KYC to take their own money back

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Good to know about the follow up regarding that hacked exchange. I remember the news breaking, now that you mention it. As for the KYC required. One day we will simply be using our smart phones to send a photo and it can be done quickly. Even Binance uses a photo recognition on the mobile app, if I remember correctly. Not that we like KYC, but some proof of life is needed. Dexes may be anonymous but are they safe from this kind of risk. There must be a win win scenario - private AND safe.

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What a complete drama it turned out to be and the way the site got hacked The 2nd time is worthy of a movie. I only had about £150 worth of token on there at the time of the hack so I don’t think I’ll be jumping through all those hoops. Feel very sorry for those who had big bucks locked away or stolen from the exchange. Thanks for the update.

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I honestly think it's an outrage. They know exactly which wallet had which credit. Now you are supposed to make a KYC, just to get back the assets you are entitled to? What a shit store. I think you had the direct comparison but quite early and could estimate that this exchange gets problems in the long term. I am glad that I have done nothing more for a long time.

P.S. You know, I was first upset about the fact that I have not taken any of the Ledger offers and paid the full price, while some have saved 30%. Oh boy am I glad I didn't save but bought through another provider ^^

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I had a little on that exchange, but I think it'll have to be considered a writeoff at this point. Disappointing, but a known risk in the system.

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