Users of the defunct New Zealand cryptocurrency exchange Cryptopia have received long-awaited emails over the past 24 hours, inviting them to take part in the asset recovery process..
“We invite you to begin the application process for the Cryptopia Limited account holder. Registration on the claim portal is required in order for you to submit a claim. Failure to participate in this process may mean that we will not be able to get your cryptocurrency back, ”the message says..
An example of an email sent to Cryptopia users
Clients encounter mixed results when trying to apply from the link provided. Some report that they have successfully registered and received a code number. Others state that after three attempts to enter data, their accounts were blocked, and then they were prompted to contact support.
The submission process is complicated by the questions that are asked in the process. So, users need to answer two of the presented questions:
- When you signed up for Cryptopia?
- Which trading pair did you use last on Cryptopia?
- What was one of your last three deposits on Cryptopia?
- What was one of your last three withdrawals on Cryptopia??
- If applicable, what was the username of the person to whom you transferred / from whom you received funds using the transfer function on Cryptopia? (not output to the address)
- Name the coin and the exact balance in your Cryptopia account at the time of liquidation.
- Name two or more coins that are not used to organize markets on Cryptopia in your account (not BTC, LTC, DOGE or USDT).
Many users report that they find it difficult to answer these questions, since the process of liquidating the exchange began almost two years ago. At the same time, some argue that they are confident in their answers, but still faced account blocking.
A number of clients also write that they decided to refuse to receive compensation, because they left insignificant amounts on the exchange and do not want to participate in the lengthy verification process, which is likely ahead of them..
Certain circumstances of this mailing raised doubts among community members.
For example, letters come from an address with the “no-reply” prefix, whereas Cryptopia has always used the “noreply” prefix in its correspondence. The mailing is carried out using the Sendgrid service, which can be used equally by cybercriminals and official representatives. Also, the sender’s address in the email can be falsified.
More importantly, Grant Thornton, the liquidation firm for Cryptopia, has so far not posted information about the bidding process that has begun on any of its channels or exchange channels. On November 13, she announced that the process would start in early December, but did not publish any confirmation after that..
In addition, in the same publication dated November 13, Grant Thornton wrote that a court in New Zealand made a mistake, due to which the data of some clients was transferred to an unauthorized third party..
“We consider this information to be confidential and significant. We are concerned that a third party may attempt to use this information to mislead and influence the decisions of account holders. We are taking measures to prevent abuse, ”she said..
As a precaution, users can wait for additional confirmation. In September, the auditor promised that he would contact 960,000 clients through “official channels”.
What happened to Cryptopia?
Cryptopia was founded in 2014 by Adam Clark and Rob Dawson from Christchurch, New Zealand, for whom cryptocurrencies were originally a hobby, not a serious business. The platform’s growing popularity has been fueled by the support of a large number of low-cap altcoins. The lack of strict requirements for the added assets played into her hands by the end of 2017, when, against the backdrop of a cryptocurrency boom among retail investors, her commission income increased to $ 30 million over the year, she received another $ 8 million from listing fees and $ 10 million from staking..
The situation changed in 2018, when, during a protracted bear market, investors lost more than 90% of their invested assets on altcoins that were Cryptopia’s specialization, but the company continued to operate.
According to the official version, on January 14, 2019, Dawson received a message from one of the Cryptopia employees, who recorded unauthorized transfers on the exchange’s hot wallets. They stopped trading for “maintenance”, while the attacker continued to withdraw cryptocurrency at this time.
Then it was reported about the loss of $ 16 million, or approximately 10% of assets. This turned out to be enough to finally undermine the viability of the exchange that had lost its former turnover. In February, the founders attempted to restart trading, but in May it was decided to engage Grant Thornton to launch the liquidation process, which continues to this day..
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