The New Zealand based cryptocurrency exchange Cryptopia has faced a massive hacking attack at the beginning of 2019. After the hack it has been a difficult time for the exchange, the hack has broken its backbone. From the recent information’s it is being found that the exchange does not even have the database of the hacked accounts. They have revealed that the third party maintained the database and they also owe some money from the exchange.
In the hacking attack, it was found that the exchange has lost funds worth 16 million. Although recovering the funds is difficult but not impossible as per the industry insiders. The official investigations are still going on, but the recent news has cast a dark shadow on the exchange and its users.
The exchange was launched in 2014, had lacked professionalism in handling customers data. After a few initial years of struggle, the exchange was running on profit from 2017 but still lacked professionalism in handling crucial business data. The lack of customer data after the hack reflects their casual approach towards maintaining the exchange.
The company still possess’ assets worth millions of dollars. David Ruscoe and Russell Moore of Grant Thornton are appointed as liquidator for the company. They will tally the funds of the exchange and distribute them to the rightful account holder. While this process takes place, trading in the exchange will be suspended.
Meanwhile, the exchange has requested its users to keep patience as the process may take some time. They have told the users will be given latest updates through their website or Grant Thornton New Zealand. They will try to resolve the issue as soon as possible.
The exchange does not contain proper accounting database as well it is maintained by third-party vendor Arizona. Arizona wants to terminate all the business with the exchange and has demanded 2 million dollars in exchange for the data they have. If the money is not given, the exchange may lose all the database forever. From the sufferings of Cryptopia, it is evident that one should not depend on the third party to take care of crucial information.