Cryptopia Managed to Secure User Balance Data
The only record to re-distribute some of the Cryptopia wallets after the January hack was held with a US database company.
Cryptopia has managed to retrieve its data from its US-based service provider, announced the liquidators on the case. The data, along with users’ self-reported balances, may help redistribute some of the assets that Cryptopia salvaged before it closed down in May for good.
During the hack, Cryptopia not only lost assets, but lost control of its Ethereum (ETH) wallets and several tokens that were almost exclusively traded on that exchange. The market operator salvaged Bitcoin (BTC), Litecoin (LTC) and other wallets.
The liquidators took over in a situation where all the assets, as usual, were pooled within large wallets that did not distinguish between different traders. Perhaps for the first time, a third party will do an arduous audit of a centralized exchange, to be able to determine personal balances:
“To determine each customer’s holdings we must undertake a manual process to determine what is held in the pooled wallets and then reconcile the information with that held in the customer database. We are hopeful this process will show us the holdings of individual account holders. This process is well underway but will still take some time to complete. We are working to reconcile the accounts of over 900,000 customers, many holding multiple crypto-assets, millions of transactions and over 400 different crypto-assets). These must be reconciled one-by-one.”
The Cryptopia exchange received multiple reports in the past for lost coins and bad user experience. But the market was still well-used, as it listed assets and pairs not available elsewhere. For a while, the market reopened and further angered traders which continued to deposit funds. The exchange went into maintenance mode and closed for good a day later.
The liquidators are exploring ways to recover at least some of the lost assets. In the past months, analysts tracked some of the funds to Binance and other exchanges.