In January 2019, a significant security breach was reported at Cryptopia, a New Zealand-based cryptocurrency exchange. This hacked exchange is one of the largest to be affected in recent times and has shocked many in the crypto community. Cryptopia Loss Marker was launched to be used for rebate process.
The extent of the damage has still not been fully revealed, and investigations are ongoing into what exactly happened. It is suspected that funds were stolen from user accounts on the exchange, but this has yet to be confirmed by Cryptopia or other reliable sources.
— Cryptopia Exchange (@Cryptopia_NZ) January 15, 2019
Brief info about Cryptopia
Cryptopia is a leading New Zealand based crypto exchange that has provided users with an advanced platform to buy and sell cryptocurrencies since 2014. It has become one of the most popular exchanges in the industry due to its user-friendly interface, wide range of coins, and low fees. Cryptopia has pioneered innovative features such as multi-coin wallets and automated listings, making it easier for users to manage their digital assets.
What is Cryptopia Loss Marker
Cryptopia Loss Marker is an essential part of the rebate process for hacked accounts. It determines the number of funds lost during a security breach on the Cryptopia exchange. Cryptopia introduced this marker to help customers reclaim their stolen assets in a transparent and secure environment. The marker allows for reimbursement in increments based on the total balance of individual user accounts at the time of the attack.
What happened after the Cryptopia Loss Marker?
The news came as a shock to many Cryptopia users who had funds locked up on the platform. In response, Grant Thornton, an independent professional services firm with extensive expertise in dealing with distressed companies, was appointed as liquidator of Cryptopia’s assets. Grant then announced that they would be leading efforts to reimburse affected customers.
With their assistance, Cryptopia customers were able to effectively file claims for lost funds and begin the process of being reimbursed for their losses. This approach from Grant enabled them to handle customers’ claims quickly and efficiently following the security breach.
How to prevent lost of Crypto assets in the future?
The most effective way to prevent the loss of crypto assets is by using an updated ledger system and avoiding leaving large amounts of money in one wallet or exchange. A ledger system will keep track of all transactions and holdings, making it easier for users to monitor their accounts. It will also provide an extra layer of security if something goes wrong with the exchange or wallet you are using. You can restore your funds from the ledger backup.
10 Additional ways on how to prevent Crypto loss
- Diversify investments across different cryptocurrencies.
- Keep track of market trends and news.
- Store assets in a secure wallet.
- Avoid excessive trading and impulsive decisions.
- Only invest what you can afford to lose.
- Do thorough research on projects before investing.
- Use two-factor authentication for all accounts.
- Avoid publicly sharing personal information.
- Use a reputable exchange with a strong track record.
- Regularly transfer assets of the exchange to a secure wallet.
Also Read: Don’t Let Your Secret Recovery Phrases Fall Into the Wrong Hands
Final Words
The Cryptopia hack in New Zealand has been a significant blow to the cryptocurrency exchange industry. It has highlighted the need for improved security measures on exchanges and across the broader blockchain industry. With new regulations and improved technology and protocols, there is hope that further hacks can be prevented in the future. Ultimately, it is up to each user to take responsibility for their cryptocurrency investments and ensure they take adequate safety precautions when trading online.