Cryptocurrency

Users Holding Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH) on Cryptopia to Receive Haircuts?

Finmax

With the ongoing updates on services and re-launching of its platform, lately, Cryptopia has been trying to make its place in the crypto landscape. Despite such endeavors, users on the social platform- Twitter has something to say about ‘haircuts’ that the users of Cryptopia will be receiving. Regarding Ethereum the Twitter status revealed that the crypto had secured zero percent and there was 100 percent ‘haircut processed.’

Here is what the user said-

Finmax BTC

We will soon see that the deposit and the withdrawals services for all the major coins for instance- BTC, LTC, ETH will go online after the hot wallets are built. There are no updates on the compensation in case of any token loss.

Two months ago, on Investinblockchain the platform posted the following-

“They could haircut everyone based on deposits. And tell whoever had coins in the exchange that they will only receive 10 cents on the $1 (or similar). That is a possibility. Mt Gox suffered a similar demise and haircuts are a way to spread the losses across all depositors. If they do not do that, they can just force full losses on anyone with ETH / ERC20 deposits. Either way, Cryptopia is rekt.”

The infamous January Cryptopia Hack-

The New Zealand crypto exchange- Cryptopia recently had to face a hard time due to the January hacking incident.  According to the platform, the worst case would be the loss of more than 9 percent of the total holdings, according to the platform. Although the platform has not revealed a lot of detail on how many tokens got compromised during the hack. A report from Elementus suggests that the crypto exchange has lost ETH tokens and ERC 20 tokens worth of 16 Million U.S. Dollars. During the initial hack, the attack resulted in 76 thousand compromised crypto wallets.

Yesterday the exchange announced its efforts for compensating the users who have suffered the hacking blow. The users roughly suffered an of 23 Million U.S. Dollars loss. The co-founder of the crypto exchange- Rob Dawson said that there would be “a rebate for customers who unfortunately lost funds.” He further added-

“You may have heard various comments about this event being an exit scam but rest assured we are 100% committed to reopening the exchange, bigger and better and to continue trading. […] If you held balances in coins that were lost in the event you would start to see Withdraws on your account for those coins. The TXID for the withdraw will not exist on the network but will detail how the coin was impacted in the event. For each withdraws you will also see a subsequent deposit of Cryptopia Loss Marker (CLM) […]”

The Phoenix arises-

By the end of this month, you can expect the crypto exchange to stand on its two feet again bravely. Currently, the exchange has resumed trading on forty trade pairs which are ‘quantified as secure.’ The number of trade pairs will only increase as more and more coins will get clear. As of now, the trade pairs include- BTC, LTC, DOGE and so on.

Two days ago the crypto exchange posted the following on their official Twitter handle-

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

Related Articles

Back to top button