For a detailed list of our advertising partners and more on our monetization strategies, refer to our full advertiser disclosure. Cryptopia Hack was one of the most prominent hacks in cryptocurrency history, during which funds were stolen from around 800 thousand people around the world. Because Cryptopia operated as a centralized exchange (CEX), it kept custody of its users’ funds and had access to all of the private keys. This created a dispute in terms of the ownership of the assets after the hack.
We also believe that these third parties communications maybe based on the continued misuse of confidential information released by the High Court in 2020. We understand third parties have contacted account holders offering to purchase their Cryptopia entitlements in exchange for an obscure digital currency. This agreement requires the assignment or transfer of account holders Cryptopia owed holdings to that third party. After this primary distribution of cryptocurrencies that are of sufficient value, there may be an additional top-up distribution to account holders, allowing them to receive up to 100% of their holdings.
Crypto Head’s editorial principles prioritise transparency and reader trust. To maintain our free content and further support our work, we receive compensation from some companies advertising on Crypto Head. A small victory was won in February 2020, when the high court of Christchurch ruled that Cryptopia users are entitled to the funds that the exchange was keeping custody of.
Update for Cryptopia Claimants and Stakeholders 5 March 2024
Thus, protecting your virtual assets was harder than it is today. We recommend that any account holders who have entered into a sale and purchase or assignment agreement with any of these third parties seek independent legal advice. Cryptopia’s terms and conditions record that account holders may not assign their rights or obligations. The liquidators consider that the terms and conditions remain in force, and any assignment or transfer of an account holder’s entitlements is not binding or enforceable against Cryptopia. This is explained in more detail in our update on 20 February 2024.
Next, go to and open “Cryptopia Balances” top right of the main page screen by your name. Click on the little burgundy colored widget with the arrow pointing up beside LTC/BTC coin name. Go to Poloniex and copy the “Deposit” address for LTC/BTC and paste or type it in the deposit address box in Cryptopia that you still have open. Hit continue and don’t forget to approve the email notification. Crytopia is a peer-to-peer cryptocurrency exchange based in Christchurch, New Zealand, launched by Rob Dawson and Adam Clark in 2014. Just like Binance or Coinbase, Cryptopia used to be a cryptocurrency exchange platform.
Withdrawal Issues at Bitcoin Exchange Cryptopia Is Panicking Customers
The project initially started off as a hobby, but by 2017, the duo quit their jobs to run the platform full-time, probably thanks to the soaring Bitcoin (BTC) prices at the time. The agreement to purchase Cryptopia account holders’ cryptocurrency that is mentioned above includes a clause about the assignment of coins to that third party. In early February, many exchange users started reporting delays in withdrawals and several other problems with the platform.
Have cryptopia given any update that there will be delays becausw of the increase of load/volume? No issue with deposits but withdrawing blood from a stone is easier than taking anything from cryptopia. James Page, previously the lead writer at Crypto Head and a registered psychologist, brings a unique perspective to the world of blockchain and cryptocurrency. The company has stated that they are expecting to file applications on the redistribution of funds starting from the first half of 2022. It was the company’s job to secure the assets on behalf of all the stakeholders and confirm the amount that the company owed to each one of its customers. © 2025 Grant Thornton International Ltd (GTIL) – All rights reserved.
Either Cryptopia tries to deal with these issues right now, or we might see cryptopia withdrawal time another exchange shutting down. Cryptopia is an independent city-state society based on the blockchain, where citizens can buy, sell, vote, and perform other essential activities using a safe, secure, and transparent system. Wallet Address Collection will be launched for those qualifying and registered Bitcoin and Dogecoin holders in the coming weeks.
Assignment of claims
Next, go back to “markets” still in Cryptopia scroll down to LTC/BTC and click. FYI, Litecoinis what I use as a transfer coin since everybody takes it and it is faster to move than Bitcoin. Make sure you are in the BTC market or you may lose everything. Buy max “LTC/BTC” that is available to you from the sale of your coins.
However, the problems that have been going on with the exchange have persisted for long and many users are demanding that things be solved as soon as possible. With the announcement of distribution plans the Liquidators expect to see an increase in bad actors trying to interfere in the Cryptopia claims process. We must remind account holders to remain ever vigilant in regards to their security. Despite Cryptopia being a small exchange, it is reasonably known among altcoin users as it is the only exchange where you can find some low-cap cryptocurrencies. We all know that managing a cryptocurrency exchange is no easy task, especially a small one like Cryptopia. However, the issues with the platform have been going on for a long time now as users are demanding for things to be solved.
A Secret Move By Trump Has One Blockchain Company At A…
- Aside from the obvious risks of cryptocurrency trading, such as the high volatility in Bitcoin and altcoin prices, there are other risks you need to be aware of when keeping your assets on the blockchain.
- On May 15th, 2019, the Cryptopia team announced that the company was going into liquidation, which meant it was going to sell all the assets to dissolve and finally close the company.
- Buy max “LTC/BTC” that is available to you from the sale of your coins.
- We emphasize that our compensation never affects our editorial integrity.
Since then, the number of complaints has raised exponentially. Customers are very upset with the withdrawal delays issues, and the problem is escalating fast. Customers are now afraid the exchange goes rogue and steals their coins. It seems that New Zealand-based cryptocurrency exchange, Cryptopia, one of the smallest cryptocurrency exchanges in the industry, is having issues and customers have been complaining for quite some time now. 1.) Open the “Markets” tab in Cryptopia, go into markets, scroll down to your coin click on it and go to the “sell” section when the new screen opens. Fill in the box for the total number of your “available balance” on that coin.
This Zendesk portal is separate from the claims portal and can be accessed by any account holder, provided they register and click the “Sign Up” button on the page. We issued proceedings against these third parties to prevent them from continuing to mislead or confuse account holders. In response the New Zealand Courts has granted injunctions prohibiting these parties from continuing to represent themselves using Cryptopia’s name.
- Such links don’t imply our endorsement, and we aren’t liable for the content, products, or services of these third-party entities.
- After this primary distribution of cryptocurrencies that are of sufficient value, there may be an additional top-up distribution to account holders, allowing them to receive up to 100% of their holdings.
- Many users are now accusing the exchange of conspiring scam on them.
- Thus, protecting your virtual assets was harder than it is today.
I keep seeing threads appear regarding the amount of time it takes to withdraw from cryptopia. Personally, i have a decred withdrawel stuck on the processing status for around a week now. We emphasize that our compensation never affects our editorial integrity. Any claims, statistics, or general information should be verified with the respective providers.
If you are not, we hope that you take a valuable lesson from this story on the risks that come with storing your assets on exchange platforms. Currently, the liquidation process is in its second stage of claim acceptance, and the liquidator company is working on collecting enough data from the holders. On the contrary, the technology has been rock solid in keeping an immutable ledger by recording every single transaction ever made. However, especially at the early stages of the crypto hype, the pitfalls of blockchain technology weren’t discovered yet, and measures against cybercrime weren’t regularly implemented.
Cryptocurrency trading is fraught with risks, including the high volatility of assets and potential security breaches on blockchain platforms. As a result of the withdraw issues, the exchange is being accused of scamming its customers. No tangible evidence scamming or stealing funds have been presented. Despite being a small exchange, Cryptopia is well known among users of altcoin as a place where you can get low-cap cryptocurrencies. This is especially true when it comes to small exchanges like Cryptopia.
Your coin will not disappear, they will go back into your balances and you will see it as a “Bitcoin” balance. Note in Cryptopia if you do not sell all the coins any small balance is lost. Must have more than .0005 of a Bitcoin in value or that coin account is bunked.
Reminder about official communications from us and protecting your information
In order to be eligible to receive your assets back in the asset transfer stage, which hasn’t started yet, what you need to do is to fill in the claim acceptance form through the claims portal. Victims of the Cryptopia hack should follow Grant Thornton’s updates and register their claims on the provided portal. The asset transfer stage has not begun yet but is anticipated, with applications for redistribution expected to start in the first half of 2022. The current plan by Grant Thorton is to return assets to account holders by the end of 2024. You need to sign up to the claims portal below if you haven’t already and you’ll receive email updates from their team. According to Stuff, in early February, a lot of the exchange users started to report withdrawal delays among other issues with the platform.
