Cryptopia
Cryptopia was a New Zealand cryptocurrency exchange based in Christchurch, which was the target of a US$16 million theft in January 2019. The exchange closed about May 15, 2019 and began liquidation.[1]
History[edit]
Cryptopia was founded in 2014 by Rob Dawson and Adam Clark. They quit their jobs in 2017 in order to work on the exchange full-time.[2]
In May 2017 Cryptopia launched the New Zealand Dollar Token (NZDT), a cryptocurrency whose value is supposed to be pegged to the New Zealand Dollar.[3]
From May to December 2017 Cryptopia grew from 30,000 to 1,000,000 users.[4] In January 2018, they temporarily suspended new account registrations and trading in their Dogecoin and Litecoin markets, claiming they could not handle the influx of trades.[5]
In January 2018, Cryptopia announced that ASB Bank would be closing their accounts associated with NZDT in February. As a result, Cryptopia stopped accepting deposits into NZDT and told customers to withdraw the associated funds by the closing date.[6][7] Cryptopia planned to relaunch NZDT in early 2019 after making a deal with a new, smaller bank.[8]
On 15 January 2019 Cryptopia announced that they had "suffered a security breach which resulted in significant losses".[9] A report from Elementus, a New York-based blockchain company, estimated the value of stolen funds to be around $23 million NZD (US$16 million). It also stated that the theft began on 14 January and continued until the 17th.[10] Bankruptcy proceedings for Cryptopia are currently pending in New Zealand courts.[11]
References[edit]
- ^ Reidy, Madison (15 May 2019). "Liquidators called in to hacked cryptocurrency business". RNZ News. Retrieved 18 May 2019.
- ^ Hutching, Chris (January 10, 2018). "From a two-man operation a year ago, Cryptopia surges on bitcoin". Stuff.co.nz.
- ^ Hutching, Chris (May 12, 2017). "Christchurch company launches new digital currency". Stuff.co.nz.
- ^ Mitchell, Paul (December 31, 2017). "Kiwi bitcoin investors concerned over Australian bank controversy". Stuff.co.nz.
- ^ Ryan, Holly (January 9, 2018). "Customers furious as Cryptopia halts trading". The New Zealand Herald.
- ^ Ryan, Holly (January 31, 2018). "Bank closes Cryptopia account". The New Zealand Herald.
- ^ Edmunds, Susan (February 1, 2018). "Bank pulls support for cryptocurrency platform Cryptopia". Stuff.co.nz.
- ^ Mandow, Nikki (November 8, 2018). "Suspended NZ crypto 'coins' to be re-released". Newsroom.
- ^ "Police say Cryptopia investigation a 'complex' situation". The New Zealand Herald. January 16, 2019.
- ^ Theunissen, Matthew (January 26, 2019). "Cryptopia funds still being drained by hackers while police investigated". RNZ News.
- ^ [https://www.grantthornton.co.nz/update-for-cryptopia-account-holders-25-October-2019/%7C"Update for Cryptopia account holders 25 October 2019" GrantThornton.co.nz
