Cryptopia’s Hack Losses May Be Higher Than Expected
A week ago, we reported that cryptocurrency exchange, Cryptopia, was hacked. In their words,
The Cryptopia Exchange suffered a security breach which resulted in significant losses.
However, a week later, the exchange is yet to reveal the details of the said hack. All that customers are left with is an earlier statement that the NZ Police are investigating the matter. Nothing has been said about how the theft took place or how much was stolen.
Various news sites have pegged the value of the stolen funds to be between $3 million to $13 million.
Elementus, which is enabling enterprise-grade data interoperability via blockchain, has done some research and revealed how Cryptopia was hacked.
By analyzing Ethereum’s blockchain, Elementus revealed that the hack began at around 8:28am on Sunday, January 13 (EST). The hackers started by moving funds from the exchange’s two core hot wallet. Once these were empty, they turned to over 76k+ secondary wallet. Cryptopia halted trading under the guise of “unscheduled maintenance” once the breach was noticed. However, the hack continued even after Cryptopia was noticed. It lasted until Thursday, January 17, when the last of the exchange’s funds were drained.
Elementus pegs the total stolen funds in ether and other ERC20 tokens at about $16 million. This does not include Bitcoin and other blockchains.
The screenshots below give a rough breakdown of how much was stolen, as well as where the funds are at now. The hackers are trying to cash out at various exchanges.