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Cryptopia hacked again?

Cryptopia

The hacking continues as someone hacked the Cryptopia exchange again, stealing another 1,675 ethereum (ETH).

Details

Max Galka over at the Elementus blog has been on top of the Cryptopia situation over the past few weeks. In his initial blog post on January 21, Galka pointed out the lack of details surrounding the hack. His team took a deep dive into the situation and provided significant additional data.

In the first hack described on January 21, someone penetrated 76,000 wallets, stealing roughly $16 million via crypto assets. Of the $16 million, about $15 million in funds still remained at large, held in two of the attackers’ wallet addresses at the time of the January 21 article.

In a new post, Galka revealed another hack which occurred yesterday. Hackers compromised an additional 17,000 wallets, stealing roughly $180,000 in ETH.

In his last report, Galka noted 1,948 wallets that possibly were still in harm’s way. The recent hack affected these wallets, as well as others.

Some customers also apparently deposited funds onto the exchange since the last hack. Yesterday’s attack involved 5,240 wallets that were also cleared out during the first hack.

During the hack, Galka speculated the activity might have been the exchange protecting any remaining funds. Last night, however, Galka and his team found evidence leading to the same original hacker(s).

Galka summed up two key conclusions. In line with the Elementus team’s previous suspicions, “Cryptopia no longer has the private keys to their Ethereum wallets and the hacker does,” Galka stated. Additionally, “[d]espite the hack, many Cryptopia users continue depositing funds into their Ethereum wallets.”

Response from Cryptopia

In the exchange’s announcement after the first hack, the exchange posted a statement on Twitter explaining it had called on the proper authorities (New Zealand Police and government agencies) to deal with the situation.

Following the initial announcement, the exchange then claimed it was no longer in control as the situation was delegated to the police.

https://twitter.com/Cryptopia_NZ/status/1085289394649460736

On January 27, seemingly the day before the second hack, the exchange posted another Twitter statement claiming police involvement and exchange lockdown.

According to Cryptopia’s tweets after the initial hack, the second hack yesterday occurred while the situation was under police watch.

Hacks and more hacks

The crypt-space has suffered a notable amount of malicious activity so far this year – and it’s still only January. Crypto Insider recently reported on the popular entity Local Bitcoins suffering a phishing attack.

Yesterday also included someone stealing 3,000 bitcoin in a physical break-in style robbery.

2019, unfortunately, looks to be on pace with 2018, which hosted a massive $1 billion stolen in the crypto space, according to Crypto Insider’s report on Chainalysis findings.

The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.

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Written by

BJ is a full time writer, editor, and trader in the cryptocurrency space. He has written many professional articles for numerous ICOs, news sites, and other interested parties in the crypto space. He is also a trader, staying up to date with the crypto markets constantly, and dabbling in traditional financial market trading occasionally.