Cryptopia

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Cryptopia logo

Cryptopia is a New Zealand cryptocurrency exchange based in Christchurch, which was the target of a multi-million dollar theft in January 2019.

History[edit]

Cryptopia was founded in 2014 by Rob Dawson and Adam Clark. They quit their jobs in 2017 in order to work on the exchange full time.[1]

In May 2017 Cryptopia launched the New Zealand Dollar Token (NZDT), a cryptocurrency whose value is supposed to be pegged to the New Zealand Dollar.[2]

From May to December 2017 Cryptopia grew from 30,000 to 1,000,000 users.[3] In January 2018, they temporarily suspended new account registrations and trading in their Dogecoin and Litecoin markets, claiming they could not handle the influx of trades.[4]

In January 2018, Cryptopia announced that ASB Bank would be closing their accounts associated with NZDT in February. As a result, Cryptopia stopped accepting deposits into NZDT and told customers to withdraw the associated funds by the closing date.[5][6] Cryptopia planned to relaunch NZDT in early 2019 after making a deal with a new, smaller bank.[7]

On January 15, 2019 Cryptopia announced that they had "suffered a security breach which resulted in significant losses".[8] A report from Elementus, a New York based blockchain company, estimated the value of stolen funds to be around $23 million NZD ($16 million USD). It also stated that the theft began on January 14 and continued until the 17th.[9]

References[edit]

  1. ^ Hutching, Chris (January 10, 2018). "From a two-man operation a year ago, Cryptopia surges on bitcoin". Stuff.co.nz.
  2. ^ Hutching, Chris (May 12, 2017). "Christchurch company launches new digital currency". Stuff.co.nz.
  3. ^ Mitchell, Paul (December 31, 2017). "Kiwi bitcoin investors concerned over Australian bank controversy". Stuff.co.nz.
  4. ^ Ryan, Holly (January 9, 2018). "Customers furious as Cryptopia halts trading". The New Zealand Herald.
  5. ^ Ryan, Holly (January 31, 2018). "Bank closes Cryptopia account". The New Zealand Herald.
  6. ^ Edmunds, Susan (February 1, 2018). "Bank pulls support for cryptocurrency platform Cryptopia". Stuff.co.nz.
  7. ^ Mandow, Nikki (November 8, 2018). "Suspended NZ crypto 'coins' to be re-released". Newsroom.
  8. ^ "Police say Cryptopia investigation a 'complex' situation". The New Zealand Herald. January 16, 2019.
  9. ^ Theunissen, Matthew (January 26, 2019). "Cryptopia funds still being drained by hackers while police investigated". RNZ News.

External links[edit]