The crypto industry is unquestionably one of the best things that happened to the current finance and banking industry, which in fact, is rotten to the core due to several reasons. The whole concept of cryptocurrencies was to give users a free hand when it comes to their own money. The assets that you have full control over without a third-party or governmental organization interfering with them. But the thing is, cryptocurrencies are digital assets without any type of physical presence, making them very vulnerable to hacks, breaches, and attacks from people who have done no good to this world.
In short, there is always a risk involved in getting your assets withdrawn or even your crypto accounts getting hacked due to the digitalization and everything available on the internet. A similar and very unfortunate scenario like this happened with a very well-known crypto exchange named Cryptopia, where it was hacked and breached, and a massive portion of funds from the platform was cashed out. Cryptopia certainly had thousands of users at that particular time that had their funds in their Cryptopia accounts. Those funds were compromised, and the users were left with nothing in the end. So the question here is if you are one of the victims of Cryptopia’s hack, is there any way to get your funds back? If so, how to withdraw from Cryptopia directly to your own wallet? Before diving into the details, let’s have a little history check.
- Cryptopia does not exist now and has not been operational since 2019
- After the hack attack in 2019, Cryptopia's team promised to rebate users who lost their funds, by liquidating and selling all of their assets
- Some of the court cases against Cryptopia are still active due to the liquidation process
- As the courts have ruled in favor of the victims, you will get your money back, the only question is when
- The process of applying to be refunded is very simple, after which you need to keep checking for liquidation updates on Grant Thornton page
What is Cryptopia, and does it still exist?
Cryptopia was one of the most popular global cryptocurrency exchanges that were based in New Zealand and provided their services to users residing in over 150 countries. The exchange was launched all the way back in 2014 when the hype of cryptocurrencies was not that great around the world. But the founders, creators, and the team behind remained consistent and kept expanding their services to provide an easy buying, selling, and trading experience to their users. They also had a massive variety of cryptocurrencies supported on the platform, including popular and not-so-popular assets, urging people to check them out and be a part of their ecosystem.
Unfortunately, the hacking attack on Cryptopia in 2019 forced them to liquidate and close the whole exchange for good. So, of course, the exchange does not exist anymore, and has not been operational since 2019.
The hack attack on Cryptopia in 2019
January 14th, 2019 was the day Cryptopia faced a security breach in their systems, making them lose over 9% of their funds. As we are talking about cryptocurrencies here, the chance of recovering those funds was exceptionally low, and in this case, they could not recover them. As per reports, Cryptopia lost over 16 million USD, which is certainly massive. Cryptopia’s team promised all of the users who lost their funds in the hacking attempt that they would get their funds back in their accounts.
What happened to Cryptopia after the security breach?
After months of investigation regarding the security breach, Cryptopia finally decided to liquidate, sell all of their assets, and shut down the entire exchange. The main reason was, of course, to rebate the users who lost their funds and this was possible only by selling the company.
There were even court cases against Cryptopia in New Zealand, as the exchange had to pay over 800,000 users back. Back in February 2020, the court of Christchurch ruled that Cryptopia is obligated to pay all users back in cryptocurrencies, and not the value in fiat at the time of the hack. But as the liquidation process is handed over to Grant Thornton New Zealand, an advisory service, the process is still going on.
Is there a chance to get your money back from Cryptopia?
If you were the victim of Cryptopia’s security breach, then you might be wondering if there is actually a chance to get your money back from Cryptopia. The thing is, the scenario has gone far from the question of whether you will get your money; the question that pops up now is when you will get your money. This is because the courts have ruled in favor of the users who lost their assets, and the liquidation process is under way. We just do not know yet how long it will take.
How to withdraw your funds back from Cryptopia?
The process of applying to get your funds back from Cryptopia is relatively simple; the time period is the thing that can be frustrating for many people out there. The first thing that you will have to do is make a proper claim of your funds by getting in touch with the Cryptopia support team through the dedicated portal they had created on Zendesk.
After that, what is left for you to do is keep checking Grant Thornton’s update page regarding Cryptopia, as they are the ones liquidating the company. Users will most probably get their funds back once the whole process is done. But as of now, the registration process is still going on, where users have to file applications and report their claims. They also have to verify their identities in order to prove they owned the accounts and the funds. After that, when the time comes, you will be compensated.
Will Cryptopia be back?
The chance of Cryptopia being operational again is close to zero. The company is being liquidated, leaving nothing behind to be operated again. The creators of Cryptopia might launch another exchange in the future, but would you trust them with your money after what happened?
It is devastating to lose your funds to hackers, but in the case of Cryptopia, there is still hope that you can actually retrieve your money in the coming months. If you have waited since 2019, it might not be that hard to wait a little more until the liquidation process is complete. Just keep yourself updated with the page of Grant Thornton and follow their instructions.
In the end, take this experience as a lesson and always make sure to opt for crypto exchanges that have proven records and security measures with current standards. You should also consider storing your cryptocurrency in hardware wallets, such as Trezor and Ledger.
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