Industry News

Ethereum holders suspect Cryptopia exchange faked breach in exit scam

A cryptocurrency exchange in New Zealand is suspected of having performed an exit scam after bluntly announcing an immediate halt due to an alleged hack.

The first signs of trouble emerged on the afternoon of January 14, when Cryptopia announced on its Twitter page that the exchange was going through unscheduled maintenance.

“We are currently experiencing an unscheduled maintenance, we are working to resume services as soon as possible. We will keep you updated,” the exchange said.

The exchange later announced it was hacked, generating an immediate wave of speculation (mostly from its own customers) that it was, in fact, an exit scam. The fears wouldn’t be entirely unfounded, given the numerous precedents involving other exchanges and the lack of details about the situation. The full notice is here:

As reported by blockt.com, some users claim their Ethereum wallets were drained right before the shutdown.

Cryptopia has not disclosed the amount of digital currency stolen, nor if it will use its own funds (if any remain) to reimburse customers affected by the hack. We’ll update this story with any new developments.

About the author

Filip TRUTA

Filip is an experienced writer with over a decade of practice in the technology realm. He has covered a wide range of topics in such industries as gaming, software, hardware, and security, and has worked in various B2B and B2C marketing roles. He likes fishing (not phishing), basketball, and playing around in FL Studio.

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  • I do think this was an exit scam. Even though not all wallets were hacked they took "haircuts" from everyone like in my case and my wallet was not hacked.. Luckly i didn't have much there.. But taking millions like that..buh.. Stay away from that exchange for all costs.. I think it was an inside job. As i ask for my money they took as haircut i got an already wrote answer ahead. When i asked again, and said there should be %'s paid if they hold and take our money they don't answer.