Cryptopia Allowed to Resume Trading, But Won’t Just Yet

Recently, the New Zealand police have given Cryptopia access back to its own office and allowed them to resume trading operations. But, according to a message apparently sent by a Cryptopia employee on the company’s official Discord channel yesterday, the exchange will not restart its operations just yet.

Last month, a staggering two-week-long hack left Cryptopia with a reported $16.1 million losses in the form of ETH and ERC-20 tokens stolen from tens of thousands of wallets. New Zealand police began an investigation into the hack, with the assistance of international law enforcement, to find the perpetrators, but as of yet, no one has been arrested.

The statement pinned to Cryptopia’s Discord channel by one of the admins explains why the exchange does not want to resume trading, despite the New Zealand police’s lift on their ban:

“While the Police statement that they are no longer constraining our return to operations and trading, it would be extremely reckless for us to do this until we can fully identify the losses and ensure that the balance is absolutely secure.”

On balance, this seems like a fair and reasonable decision on Cryptopia’s part. One also wonders how much trust its users still have in the exchange given the recency and unresolved nature of the hack, making any decision to resume trading unwise at the moment. The statement also notes that under New Zealand law, it is illegal for a company to permit reckless trading that places the assets and property of creditors at risk.

Earlier this month, Israel-based crypto site Coinmama, which allows its users to purchase crypto using their credit card, suffered a large data breach that affected 450,000 users.

But in better news, it was reported today that United States law enforcement recovered $104,000 that was stolen from crypto exchange Bitfinex when the exchange was hacked 2016, and returned the funds to the victims.