Cryptopia crypto exchange based in New Zealand warned its users that it might not be able to refund all of their funds back. The coming altcoin news also reports that the exchange might not be able to return the funds at all.
In a published update earlier today, the crypto exchange announced going into liquidation and thus warned its users of the possible difficulties with the refunds. There is an investigation expected to determine the value of the lost funds which need to be given back to the customers. This needs to be done before they are able to assess whether they are able to return the money back:
‘’Until the investigation is complete, we cannot return any crypto-assets to customers, or confirm whether individual customers will get all of their crypto-assets returned.’’
The Cryptopia crypto exchange conducted their own investigation process which they claimed was complex and are expecting ‘’ direction from the New Zealand Courts.’’ Also, the investigation will likely take months so the exchange has already frozen their deposits and withdrawals on its platform. Some of the users have posted on Twitter issuing warnings on the entire situation and coming to terms that they might never see their money back.
This misappropriation of the funds should be punished and handled according to the users of the exchange. Some are even proposing jail time. Cryptopia admitted that the security breach five months ago is the source of all problems. Cryptocurrencies worth about $15 million were lost to the hack attack and the exchange even disclosed that the ‘’hack earlier in the year contributed to the issues which led to the liquidation.’’
In the best cryptocurrency news sites, you could also read that the Crypto exchange froze all of the crypto assets that were deposited on the platform and will affect even those which were not affected by the January hack. Users will be unable to check their balances until the investigation is completed. The platform rose to popularity due to its extensive portfolio. There were about 457 altcoins listed on the platform before the hack. The users now have to find some other platform to resume trading and forget about their lost funds.
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“Telegram was the first big project that legally prohibited investors from selling their allocation. Investors usually just share their allocations with friends, without signing documents.’’The purchase agreement which was written for Telegram by the US legal powerhouse Skadden, Slate, Meagher, and Glom LLP according to one investor stipulates that the buyers of grams may not offer pledge, swap, sell and encumber or dispose of their tokens directly and indirectly. The investors may sell any securities convertible into or exercisable or exchangeable for the investment contract between an investor and the company. The issuance of the tokens is conditional upon the investors’ compliance with the rule. One investor stated for the latest cryptocurrency news:
The future issuance of tokens is conditional upon the investor’s compliance with this rule. If Telegram learns the investor broke the agreement, it can cancel the allocation.
Blockchain CEOs Tired Of The South Korean Regulation: Report
‘’Experts point out that domestic blockchain projects are flocking to foreign exchanges largely due to tougher domestic cryptocurrency exchange market conditions. Investors cannot make or withdraw deposits in the Korean currency at Korean exchanges’’If we don’t include the nation’s four largest exchanges, some of the 200 smaller exchanges cannot even open real-name virtual accounts and this is one of the reasons why crypto investors cannot benefit from the protection systems. The international players such as China’s BW.com, Bitholic and Binance Labs sense the demand from South Korea hence they are either opening Korean won markets or in this case, Binance Labs is only sponsoring the blockchain efforts. Only this week, Japan as one of the governments that openly claim to foster crypto exchange innovation while still has a strict licensing scheme added another platform to its domestic economy in the form of Rakuten Wallet. These moves are also impacting other exchanges and market players' share of the market. As a result the South Korean exchanges are less appealing in 2019 because of the low volume and out of the top one hundred in the world, there are only a few exchanges that are located under the jurisdiction in Seoul. Other issues faced by the local include added responsibility for loss or theft of the customers’ funds. Earlier this month, the commentators warned that the existing restrictions on cryptocurrency by the regulators will throttle attempts to foster blockchain innovation as read in the latest cryptocurrency news:
“It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions’’
Coinbase Confessed To Have Put Traders’ Funds At Risk
‘’Under [a very specific] and rare error condition, the registration form on our signup page wouldn’t load correctly, which meant that any attempt to create a new Coinbase account under those conditions would fail. Unfortunately, it also meant that the individual’s name, email address, and proposed password (and state of residence, if in the US) would be sent to our internal logs.’’The exchange noted that the users who resubmitted the form had their usernames and passwords and other details kept securely. Unfortunately, more than 3,000 customers as mentioned logged their private data onto the servers. Coinbase pretended to be the good Samaritan and fixed the issue on top priority. The company traced the entire line of storage to confirm that they are not holding any more information from the customers’ personal information. According to the blog post:
‘’We have an internal logging system hosted in AWS, as well as a small number of log analysis service providers. Access to all of these systems is tightly restricted and audited. A thorough review of access to these logging systems did not reveal any unauthorized access to this data.’’The company also started a password reset for affected customers and asserted that a password alone could not have a hacker potentially stealing their bitcoins because they protect each account with mandatory email and 1FA authentications. Coinbase confessed:
‘’We maintain incredibly high standards for securing the Coinbase platform, and any time we fall even slightly short of those standards, we mobilize a team to figure out what went wrong, and how we prevent it from happening again. We also believe in being transparent with our customers, which is why we’re sharing the results of our investigation today.’’As we can read in the coming altcoin news today, the alert came in a time when the institutional investors are taking huge steps into introducing bitcoin in their portfolio because security is still the top of their concerns.
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