Cryptopia opens portal to claim losses

LeoFinance
28 days ago
(edited)
3 Min Read
500 Words

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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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Source

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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