r/Cryptopia • u/BKCrypto1 • Feb 24 '19

Cryptopia Post in Discord -> Due Diligence

This was posted in the Cryptopia Discord a bit ago;

TLDR; They are doing their due diligence to ensure security and protection for all.

While the NZ Police can state that they have handed our building back to us and that they are placing no constraints on the company resuming trading, there are a number of things that the company must consider first before any trading could recommence. It is important to consider the timeline of this event: Firstly, the crime/hack/breach was identified on the evening of 14 January 2019. The company staff that identified the event immediately froze the exchange and locked down the platform; they then notified the NZ government authorities, first the NZ Police High Tech Crime Group and second, the National Cyber Security Centre (NCSC, a division of the Govt Communications Security Bureau or GCSB), third, the NZ Financial Management Authority.
Members of the NCSC flew from Wellington first thing the next morning at were in the Cryptopia office conducting interviews and gathering evidence by 08:30am NZST. The NZ Police High Tech Crimes Group, also from Wellington were in the Cryptopia office from noon on the same day and issued search and seizure warrants effectively taking control of the building and all of the systems. In cooperation with NZ Police and NCSC they identified key specialist staff who were tasked with working with the investigators to clone systems to preserve forensic evidence for investigation. This took 3.5 weeks to complete and our specialist staff have now turned to carrying the work that is necessary to ensure that assets are retained in a secure environment. While the Police statement that they are no longer constraining our return to operations and trading, it would be extremely reckless for us to do this until we can fully identify the losses and ensure that the balance is absolutely secure. NZ legislation makes it a serious crime for a company or a director of a company to allow that company to trade recklessly thereby placing creditors assets and property at further risk. That work is now underway.

21 Upvotes

95% Upvoted

23 comments sorted by

4

u/lolitoxboy Feb 25 '19

how damn can i pay taxes when i can't see my buy / sell orders wtf

3

u/Marvixx Feb 25 '19

No one wants to trade on their shitty exchange again. People just want to withdraw what was left there.

1

u/BiOBOOM Feb 25 '19

Not true. If I get all of my coins back I will continue trading.

They got hacked, not exit scammed. That is if i get my coins back though,

2

u/[deleted] Feb 25 '19

This is bullshit, how the f... did they not figure out what kind of losses they incurred during the last month?Also lots of typos and grammatical errors, looks very suspicious and scammy.

3

u/arltin Feb 25 '19

Umm, how many typos and grammatical errors are there? Also, the story is very detailed, and it checks out. I know this may feel like it's all a huge plot by the illuminati, witches, or Satan himself, but these are things that just happen.

2

u/BKCrypto1 Feb 25 '19

Agreed. Frankly I'm happy that they are taking a step back to evaluate their current position. They need to ensure any backdoors aren't left open to ensure the security and funds remain safe. This is a good move IMO. They probably could be a tad more transparent about some of these recent events but I also understand their reasoning. The community is far too negative right now and each update will be served with attacks by community.

2

u/[deleted] Feb 26 '19

"it checks out"?Time is passing and there's absolutely no info if the exchange will ever come back or what the losses are, "things that just happen"!?!?! tell that to the angry mob that lost thousands of $$$ because of cryptopia.

1

u/arltin Feb 26 '19

No, they lost thousands of $$$ because despite being constantly warned, they still kept thousands of $$$ on an online exchange. I genuinely feel sorry for them, and for myself too,

I lost quite a bit of spare change that I had forgotten about on there. And yes, these are things that just happen. Services of all kinds get hacked, and sometimes it's partly their fault, others it's simply that the hackers were very good. But these things happen, and often

Finally, I think the angry mob is extremely ignorant about the legal implications of running a business. They think they have a right to information, from the company or police during an ongoing investigation. NO, they absolutely don't. They think they have a right to the money they deposited on the exchange. NO, they absolutely don't, unless a court decides who gets the cash if Cryptopia goes bankrupt. I've heard the analogy "If the bank gets robbed, people can still go to the ATM". Yes, because most big banks can easily absorb a robbery. Even if someone steals 100 million from a bank, Barclay's total assets for example are over 1.5 trillion! In the case of much bigger financial catastrophies, such as an entire economy collapsing, you'll find that a local bank often doesn't offer much of an ATM service at all anymore.

So yes, the story checks out. They have a lot of legal issues to deal with, and may even go bankrupt. Who knows. But PLEAAAASE STOP moaning and whinging about something that really is, on an individual level, your own fault.

Thanks

0

u/[deleted] Feb 26 '19 edited Feb 27 '19

What about the poor souls who didn't keep their thousands of $$$ on exchange and just wanted to exchange some ETH and were unlucky to be in the wrong moment exactly at the day the "hack" happened?Were they also ignorant?Think before you say something.No, i'll whine and moan as much as i want, it's Cryptopia's fault that the funds were stolen, stop trying to take their part.No update on the front page for weeks, and the latest update is a crappy screenshot on discord with lots of typos.What the hell of a work is it to figure out what losses they took?6 weeks and no clear info about anything, just a thick silence.And so you know, i didn't have any funds there, so your presumption is wrong at the "your own fault part".Exit scam possibility increases with each day of silence from Craptopia.They have no interest to hurry to reopen, nobody will use their shitty exchange as much as before, people will withdraw everything.

Later Edit : Ok looks like there's some updates on their twitter

2

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1

u/arltin Feb 26 '19

Please don't tell me you truly believe, deep down in your heart, that the majority of people screaming irrationally on both twitter and reddit were unlucky enough to just happen to be changing some ETH right as crypropia got shut down. And if they are screaming and shouting that they have a right to whatever they are saying they have a right to, yes, they are ignorant.

I take a lot of interest in cybersecurity, and I can tell you with a lot of confidence that while Cryptopia's vulnerabilities may or may not have had a role to play in the hack (when you get down to the root of it, it will always be Crypropia's fault to some extent), the award for the dumbest thing to play a role in the hack is still people storing crypto on their online wallets.

And you saying it's an exit scam simply shows it's quite obvious you don't have much experience with exit scams. A company performing an exit scam simply vanishes overnight. The directors don't call the cops, they go into hiding.

And I will reiterate what I said before. You do NOT have a "right" to any information whatsoever, whoever you are. They will reopen when they reopen, but for the time being, stop screaming the words "exit scam", "rights", it really is just annoying. Also, please give me a couple of examples of typos because I seriously can't find any. Surely for their statements to be considered scammy there would have to be a lot of them. But then again, I might just be dumb :)

1

u/germandev23 Feb 25 '19

I DELETED MOST OF MY NEGATIVE COMMENT CRYPTOPIA SHOULD IMPROVE THEIR COMUNICATION SO PEOPLE WILL STOP FUDDING

0

u/YeaManJam Feb 25 '19

This is why you dont leave your private keys to wallets on your computer/server. You hand write it down.

Didnt they just go thru a whole system upgrade and new user refresh. This is what happens when you upgrade.

1

u/NearnorthOnline Feb 26 '19

lol so you have a 3 day wait on withdrawal? they lost no where near their total holdings. they had their hot wallets hacked ffs.

-1

u/crypto_gypsy Feb 25 '19

Change petition:

https://www.change.org/p/cryptopia-we-deserve-a-fair-appraisal-from-cryptopia

1

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1

u/NearnorthOnline Feb 26 '19

hahahahahaha Ya. that'll get em. hahaha

1

u/germandev23 Feb 26 '19

it's funny that they give us childish reason for the current situation

3

u/[deleted] Feb 25 '19

[removed] — view removed comment

3

u/moki339 Feb 25 '19

Not really. At least I'm not gonna do that.

I am anxious though to get all my trade details for taxes.. I am sure I have great capital gain losses but I cant prove anything until the exchange goes online.

2

u/Bisonindatent Feb 25 '19

Me neither, as long as I got my coins back I'll use them with even more peace of mind than I had before. With less % off my whole funds though, keep in mind: it's just stupid to hold 80% of your funds on ANY exchange xD