Cryptopia Crypto Exchange Hacked: Will This Ever Stop?

The whole crypto industry has been under a lot of heat for over a year. Everyone in the industry would want to forget all the huge price drops that the crypto industry experienced. While many thought that 2019 would be the year when these digital assets rise again, this doesn’t seem to be the case.

The crypto market experienced another price drop in the first week of January. Then the 51% attack on the Ethereum Classic network did not help the declining prices either. Now, a New Zealand based crypto exchange Cryptopia has experienced a security breach that has led to the theft of cryptocurrency.

It is still unclear as to the number of cryptocurrencies that were stolen from this hack. However, after the news broke out about the hack, Bitcoin experienced only $30 dollar price drop on the candlestick. This behavior was highly unanticipated.

One possible explanation for the market to not be highly influenced by this hack is that Cryptopia was a crypto exchange that was very popular during the altcoin bull run that took place in January of 2018. People moved on to Cryptopia to get their hands on some of the lesser-known cryptocurrencies out there. However, ever since the altcoin craze ran out, the volume of transactions on Cryptopia also took a massive hit. Thus, the hack on the exchange had any effect on the market price.

Cryptopia announced the news about the attack

Cryptopia announced the news about the attack on their twitter page. They further went on to say that all the government authorities have been made aware of this attack and the cyber police are currently investigating the extent of the attack.

The news about this attack broke out on January 14th when the Cryptopia team announced unscheduled maintenance of their website in order to fix a security breach. On January 13th Whalewatcher reported a transfer of 19,391 ETH from a Cryptopia wallet to an unknown Ethereum wallet. This transfer alone was worth over $2.4 Million. Additionally, Whalewatcher also reported a transfer of 48 Million CENNZ tokens from a cryptopia to an unknown wallet. This transaction was worth over $1.1 Million.

Such high volume transactions are highly unusual and might actually be the transactions made by the hacker. Only after a thorough investigation is done will we know the actual amount of funds stolen from Cryptopia.

Cryptopia is the first exchange to get hacked in 2019

Cryptopia is the first exchange to get hacked in 2019. An attack on an exchange is very devastating. However, it is quite strange that the hack was executed during the bear market when the crypto exchanges with a lower number of transactions struggle to stay afloat.

This point was brought forward by WhalePanda who also added how irrelevant Cryptopia has become in recent days. Even though nothing has been proven yet, it is only going to be a matter of time when we get to know whether Cryptopia was really attacked or not.

Conclusion

Hacks on exchanges have been very devastating. Some of the hacks such as that on Mt. Gox in 2013 has even led to the shutdown of the entire exchange as well. Cryptopia being a smaller crypto exchange will definitely feel the ill effects that follow this particular hack. Only time will tell us if they are able to survive through this attack or not.

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