Cryptopia Crypto Exchange Suffers Major Security Breach Millions Lost
Offices belonging to Cryptopia remain under police lockdown; after the New Zealand based cryptocurrency exchange suffered a major security breach. Immediate reports indicate that hackers could have walked away with millions of dollars, on gaining access to the exchange’s wallets.
Cryptopia Security Breach
Cryptopia has already confirmed the incidence having also informed the relevant authorities. New Zeeland Police, as well as the High Tech Crimes Unit, have already swung into action as they try to unravel what exactly happened.
The exchange has since gone offline in what the team maintains is a standard procedure as they try to assess the damages.
“Until this has been carried out, the Cryptopia Exchange will remain in maintenance mode, with trading suspended. We are committed to getting this resolved as quickly as possible and will keep you all updated every step of the way,” Cryptopia in a statement.
Even as the relevant authorities look into the matter, people are starting to ask questions as to the manner in which the incident took place. Immediate reports indicate that three large sums of cryptocurrency were transferred in the early hours of January 14, 2018.
The first transfer out of Cryptopia Exchange involved $2.43 million worth of Ethereum according to Etherscan, a renowned cryptocurrency transaction, tracking site. A few minutes later $1.18 million worth Centrality (CENNZ) was also transferred followed by a third transfer of $371,000 worth of DAPS.
Cryptopia Hack Response
In response to the security breach DAPS organization in a statement says it has reached out to all exchanges handling DAPS cryptocurrency. The firm has since asked the wallets to freeze any deposits coming from the hacker wallet.
Cryptopia on its part is remaining numb refusing to share any information about the incidence. The firm has also refused to shed more light on the three suspicious transfers. The amount of money lost from the exchange could be much higher according to the police.
The exchange offices remain under police lockdown as the authorities treat them as crime scenes. In response to the incidence, a dedicated investigation team has been put in place in Christchurch, made up of specialist police staff with experience in cybercrime and cryptocurrency.
The Financial Markets Authority has also swung into action given that people’s money is on the line. This is not the first time that the FMA has received complaints about Cryptopia. Most of the complaints have mostly touched on the losses that people have made while trading cryptocurrencies.