Cryptopia Rolling Out New Wallets ahead of Potential Reopening
The New Zealand exchange has finally updated on its situations, estimating a loss of about 9.4% of its digital asset holdings.
Cryptopia, the exchange hacked on January 14, has suggested it may return online as it is going through a process of renewing wallets and moving assets. A few days after regaining access to its offices, the company finally answered the calls of traders, initiating the return to some form of activity.
Cryptopia estimates the hack affected 9.4% of its digital asset holdings. In the past month, some of the tokens were identified and tracked, but the hacker still managed to liquidate at least some of the assets.
The exchange told customers to stop using old addresses as it prepares new wallets for most digital assets supported.
Cryptopia is also working on tighter security around its wallets. During the hack, not only tokens and Ethereum (ETH) were lost but also private keys. For other types of assets, Cryptopia is moving to brand-new storage to avoid holding potentially compromised addresses.
The reopening of the exchange may renew hopes that the crypto sector remains resilient. In the past, some platforms have managed to absorb losses and continue their activity, as in the case of Bitfinex, which lost as much as 120,000 Bitcoin (BTC). Coincheck also recovered after having $530 million worth of NEM (XEM) stolen.
Cryptopia saw increased activity in the past year, building liquidity for multiple new coins and tokens. The exchange improved its efficiency and saw an inflow of new users, positioning itself as a relatively reliable market. However, this reputation was shattered by the recent hack.
In the past, Cryptopia experienced only general technical difficulties, closing the wallets for separate coins due to this type of glitches, as was the case with Bytecoin (BCN) and several other anonymous coins. Sending such assets to Cryptopia without de-anonymization could have led to losses for some traders as the support team refused to assist more than once per user.
The closed wallets and problematic withdrawals hurt the reputation of Cryptopia even before the loss of user funds in the hack. The team is now attempting to renew the exchange even at the risk of having a mass exodus of traders.