Crypto Exchange Cryptopia Reveals Plans to Compensate Victims of January Hack

CRYPTOPIA EXCHANGE

Cryptopia, the embattled New Zealand cryptocurrency exchange could be back in business by the end of this month. This is the latest update from the exchange co-founder Rob (Hex) Dawson. According to Dawson, his team is working on several areas to ensure that the exchange is back online and the victims of the January 14th hack are effectively compensated.

He wrote in regards to the affected users:

“We will be emailing you again shortly with more details around the rebates and the projected dates for trading to be active again. Please be aware, we are hoping to achieve this by the end of the month [March].”

The exchange has not yet disclosed the total loss that it suffered from the attack but it made a telling update late last month when, through its Twitter handle, it announced that the hackers may have made away with not more than 9.4% of its total digital assets.

cryptopia hacked

Dawson, in his update, addressed the rumors that the management was executing an exit scam. He said,

“You may have heard various comments about this event being an exit scam but rest assured, we are 100% committed to reopening the exchange, bigger and better and to continue trading.”

For the users who had suffered losses during the January hack, they will see the outgoing transactions from their wallets but Cryptopia says that they will see, as well, incoming transactions of an asset dubbed Cryptopia Loss Marker(CLM). CLM is not a coin and therefore transactions regarding CLM will not be available on the network. According to the update, the CLM represents the value of the tokens and coins lost during the hack on January 14th in $NZD.

“CLM is not a coin, it can’t be traded as yet, it is just a number in the database that represents the loss for each coin for each user,” Dawson wrote.

So far the exchange platform is still accessible to customers on read-only mode but it seems that some transactions were conducted today worth about 7 BTC ($28,000) albeit for a brief moment.

It could be that the exchange may have allowed some users to effect transactions for testing purposes as the exchange is still not yet available for trading. All customers are advised to update their security information and enable 2FA as they prepare for the reopening of the platform.