Hacked Cryptopia Exchange Didn’t Use Individual Wallets
Hacked Cryptopia to Start Accepting Refunds by Year End
The opening dates for registration may still be postponed, the auditors note
Those users who did not lose funds after the hack in January 2019 also fell under the restrictions.
All users are forced to go through verification to apply for a refund
Those wishing to receive a refund of funds lost due to hacking will have to undergo mandatory AML / CFT verification, the auditors of the exchange said.
Hacked in 2018, the New Zealand cryptocurrency exchange Cryptopia plans to start filing for damages by the end of 2020. According to the official statement of the auditors of the Grant Thornton company, registration for compensation for losses may be opened as early as December 2020.
The refund process will consist of three parts: registration of applications, verification of identity according to AML / CFT standards and the actual transfer of lost assets.
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At the same time, the auditors note that the issue of resuming the work of Cryptopia is not discussed, since the source of the hack is still not identified..
“We must complete the reconciliation process, including the return of those funds that were not stolen.
With over 900,000 active customers and up to 900 different coins, this is not a fast process, ”said Grant Thornton..
However, the final date may still be changed as auditors will have to go back to court to get further guidance on the refund process, including AML requirements..
At the same time, the audit company was notified that despite all the court approvals, the return process could not begin immediately “due to an incomplete approval process, concerns about AML and various other legal advice required on various issues.”.
It is noteworthy that those users who did not lose their funds also fell under the restrictions on the refund..
“Since there has never been a detailed reconciliation process between the customer database and the cryptoassets stored in the wallets of the exchange, we cannot confirm that the account holders’ coin balances will match the actual holdings for each coin,” the auditors said..
Cryptocurrency exchange Cryptopia lost $ 16 million in cryptocurrencies in January 2019 due to security vulnerabilities. In mid-May of the same year, the exchange suspended all trading after it became clear that the scale of losses increased to $ 100 million.
In April 2020, Judge David Gendall, in the High Court in Christchurch, New Zealand, ruled that exchange users are entitled to recover assets that were held in Cryptopia accounts..