Topic: Reason Why Cryptopia Is SCAM (Read 622 times)

I think this is the internal work of Cryptopia, because I see a lot of controversy in this. In any case, I stopped using them, they lost confidence.

I certainly can't say any reason why should an insider be involved in the hack but it always seems to me that an insider is somewhat involved in the hacks. Maybe, not all employees are honest...

Normally an exchange always keeps most of the fund in cold wallets afaik, then how come a hacker gets the private keys and get access to the wallet? Or they don't know how to secure the private key, wallet?

If a hacker hacked a single wallet then it wouldn't be a pain to roll everything smoothly again imo unless it has a low volume, but if a hacker hacks all the wallets or most of the wallets then the exchange has really bad security issues.

Cryptopia lost 9.4% of its Holdings to Hackers - doesn't it sounds like every wallet got hacked?
However, I don't think Cryptopia will shut down their operation with just 9.4% of its holdings lost to hackers.
I just hope they return back to business soon and returns the traders with their assets along with mine.

Why should it be an insider job? That makes no sense for a big exchange like Cryptopia when they had the chance to become a very big exchange:

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I think it's just a hack. Speculations about not sufficient security standards are more appropriate. It's known that exchanges are target of hacker groups.

Something tells me it's an inside job or Cryptopia has one of the worst security in the crypto world, this is a step backward for us in a fight for a safe and secure exchange and I believe they cannot get their business back again it's game over for them.

Apart from the shitcoins been listed on the exchange there are still much flaws around the exchange. Keeping ones valuable coins on cryptopia is suicidal and fungicidal, so i rather keep my coins on my hardware wallet than looking to Binance and others to spy on my privacy. 

We do already know on how they do operate. Their popularity increased due to that factor where they arent strict when it comes to centralized compliance and now they
have shown on the system for them not to be traced by the government.For now they are still loyal to their customers but we cant be sure on how long they would retain
this kind of system because sooner or later if they wont be legalized then they would go to the same path on most exchangers do.

And this is exactly where this topic should be too. Or in investigation.

Cryptopia(exchange) holding Bytebal deposits. Take caution while depositing.

cryptopia scamming Money

Warning Cryptopia !!! No payout

Cryptopia delete mrai but do not inform me

Cryptopia is a scam

they have dozens of  Scam Accusations

Cryptopia is opening on coming Monday on read only mode. They also calculated the amount lost and their worst calculation shows upto 9.4% of the total holding.
All info is from their twitter handle https://twitter.com/Cryptopia_NZ, that look fairly active for past couple of days.

All I can say now is that it lists every sh*tcoin

Keeping funds in your account, even Binance, is a mistake. Many have problems with this. I use services without registration, it is much easier and safer.

I don't think Cryptopia would ruin their reputation by hacking themselves, the theory is very far fetched in my opinion. Crypto is still very new and after the bear market ended they would have had the chance of being a very big exchange especially for a large number of altcoins.

No exchange is safe from hackers, therefore don't store coins there. It's dangerous.

This could be an inside job it's probably the end for Cryptopia no traders are going to trust them anymore why should we,there is a big boom of new cryptocurrency, those who cannot deliver security and good features might as well close shop.

I believe Binance is a good exchange. From all appearances they have the technology, the funding, the support and the volume to be a good exchange.

Binance is not licensed anywhere, their offices and servers are in secret locations and the founder moves around all the time.

In many ways those are benefits. But it could also become an issue.


https://www.reddit.com/r/BinanceExchange/comments/87ztvs/be_careful_out_there_binance_can_exit_scam_at_any/

The advise remains the same. Keep minimal funds on exchanges.

Bittrex has a bad reputation, besides, I had a problem with them. They blocked my account without responding to my requests. Binance is truly one of the best.

Cryptopia is not a scam exchange.

Up until the "hack" they had a fully working and accountable system.

Of course they had/have a few unresolved tickets, but this is probably because their user base are people interested in low market small coins that comes with  blockchain issues.
If a dev team decide to fork/roll over as an exchange they have to disable deposit and withdrawls.
Same if on blockchain has a very low hasrate  (not very well secured) they have to make sure that deposited funds are not from a double spending hash attack (that happened to ETC last month). But of course people will claim that the exchange is at fault for not doing the deposit and withdrawal fast enough.

keep in mind that One di-satisfied customer will yelled that it is a scam, make a topic on this board saying that the exchange is stealing the funds meanwhile 10 happy customers won't post anything.

Also, keep in mind that the NZ time zone is quite far from other time zone.
I am in NZ and i know for a fact that when i ask support in US or Europe i always have to wait overnight for someone to read my messages.


The above is true for most exchange,
On twitter, FB, you have heaps of people calling Binance/bittrex/poloniex  a Scam because their deposit of BCH to a BTC didn't how up or because their shitty ERC20 un-supported by binance doesn't show as a balance ....

Cryptopia wasn't recognize as scam exchange until they prove it to their customers and to the world at large. According to some speculations Cryptopia exchange is the most scammed exchange as of now.

Bittrex also is not a reliable exchange and for your information they have proven not reliable which poss many questions unanswered regarding the exchange.   

Right probably cryptopia people hasn't chewed everything yet and might take some time to resume its operation (assuming they want to get back to business).

Now it's time to wait for the police report to go public and what cyptopia next action will be. I couldn't imagine people keep huge funds in an exchange and then one day, it's all gone!!! Ouch.

It makes me think about how many of these exchanges are owned by the same entity. It can't be coincidence that they all know that the most important thing to do is generate heaps of artificial volume to attract users.

The first thing honest exchanges do is slowly build up a user base, and while the volumes are low initially, they will grow as time goes by if the demand is there. No exchange instantly attracts large enough traders to justify these mad volumes.

Another aspect of these exchanges is that if you happen to register and deposit, that you'll be having a hard time contacting support to solve your problems. Most likely outcome in that case is that you'll lose your funds.

I tried Bisq, which is a decent DEX, but the volumes are pretty low and the spreads are too significant for daily use. I'm certain that it will continue to grow, but the rate of growth is very slow. It has a 24H volume of just over $100,000 where BTC/XMR accounts for almost 90% of that volume.

It's very easy to point at exchanges as Yobit or Hitbtc, but as long as they are solvent, and make enough profits, they will continue to operate. If they don't gamble with people's funds and lose them in the process, an exchange of Yobit's shitty level can last for many more years.

I'm more inclined to say that one of the weird Asian exchanges that popped up out of nothing and immediately generate hundreds of millions in volume are the first to exit this space.

While the police has just given them back their buildings it does not mean they can just start trading again. It would be quite reckless to just throw the doors open without doing a proper security review of everything.  There will be quite a lot of work for them to do on their site to ensure safe trading can occur.
As you can imagine - during the investigation there was no staff working on the site (other than to assist the police) and they had no access to their building - now that they do have access to their building they will have to assess the situation and make changes. The police focuses on the preservation of evidence and finding the perpetrator - but the police don't fix the website or whatever cause the breach.
They will also need to prepare for an exodus. There will be quite a few people that will withdraw their funds from the exchange. Times like this remind that it is important to only keep funds necessary for trading on an exchange.


Decentralized exchanges and exchanges with questionable jurisdictions are more risky.  Who are the owners ? Who will investigate ? Who will be held responsible ? At least with a licensed exchange there will be some required standards of care and accountability.

There some development on the case as reported. And NZ authorities have given the go signal that the exchange can resume their operations. But it seems Cryptopia remains offline as of this time. And hinting from the report, it seems that NZ has cleared Cryptopia of any internal malpractices to say the least

https://cointelegraph.com/news/new-zealand-police-say-cryptopia-is-ready-to-resume-trading-but-platform-remains-offline

The case of cryptopia exchange is unsolved, so probably my guess is taking a lot of time before it will recover or it will close forever.
Yes, ZN police authorities now are still working on that case and hopefully it will solve because a lot of traders suffer on their loss due to that exchange.

I don't know which decentralized exchange now we trusted for, hence, they also have a possibility of scam prone. My question is, what exchange next? HitBTC? as I noticed shitty exchange having scam exit.

bittrex is a scam website - AVOID!- WITH PROOF!!

My Bittrex account has been disabled.

Bittrex blocked my account more than 2 weeks ago and still don’t answer at all

BITTREX.COM 1.000.000$ disabled

Bittrex scams $millions and the community is in denial phase!

bittrex are also not trustworthy with lots of money

I use only bittrex and binance. Tried this one previously but I am glad that give up soon after registration.

Cryptopia was closed due to the New Zealand police investigation https://www.police.govt.nz/news/release/update-investigation-involving-cryptocurrency-company
I find for example Cryptopia BTX wallet still untouched https://chainz.cryptoid.info/btx/wallet.dws?6363903.htm
the question is when will it work again, I also think it will be very hard to recover.

Still possible, if they file a bankruptcy due to the hack issue and somewhat refund some small percentage of the users funds or not at all and run the remaining. But of course all of them are speculations. Its been days already but still no positive report of the investigation.

Just wait for the process of investigation.

Overall, all statements are just a pure speculation.

No way they will just do an exit scam "easily" because they are fully compliant with New Zealand's crypto regulation. That means they are legit established company there. Im not disregarding the possibility of exit scam but I believed there's a "hidden stuff" here which all of us here didn't know so just wait for progress rather than assuming.

The main problem I see here is that the authorities might end up seizing assets, either because the exchange has been fraudulent in one way or another, or the fact that it isn't registered as exchange.

I am sure that most people expect such a shady exchange to participate in fraudulent activity, so it's going to be interesting to see where this goes. After BTCe went down I haven't had any interest in using similar exchanges anymore.

I get it that people don't want to walk themselves through KYC/AML verification requirements, but playing Russian roulette with your funds on exchanges such as Cryptopia isn't a good thing either....

All are possible OP so they can really scam or hack us still better to look at the worth of anything like in cryptopia i think this is a good trading site here in crypto then if they turn to scam or hack site that's part of taking risk in this site and actually if you not know this that's your own fault so study first any site here before you do invest and for me withdraw your btc and alts in trusted wallet so your really safe then no reason to experience scam of hack

Yeah, It's logical that the hackers respect the rules of daily withdraw limit.

more needs to be our interest in what will be the end of Cryptopia. Many users have a non-ethereum deposit there and the need to allow at least they get their money.

It can be the hacker got access their hot wallet and take all everything he wants without following the exchange's withdrawal flow system.

And same as few people I have some thoughts that this is some kind of exit scam but let's wait until some news and updates. I just saw some tweet that some of the funds we're forwarded to binance and the account or funds was freeze, and that's pretty stupid thing that hacker can do since blockchain is public and every moved coins will be traced.

https://twitter.com/cz_binance/status/1085511601665368065

Cryptopia Hack Update: While Police Investigation Continues, People Demand Refund from Hacked Exchange


this problem is going to make a lot of noise

Yes, we might haven't a piece of solid evidence or proof that we conclude Cryptopia exchange is an exit scam. But if you are looking out the Exchanges thread there's an issue regarding that exchange. Last year my friend deposit on his Byteball coin on that exchange but they freeze it around 3 months before he can trade into Bitcoin and withdraw (he still lucky). So shitty isn't it?

Of course it is an exit scam.  There is no doubt in my mind that the owner of cryptopia is involved in this heist.  We have seen this same scenario play out multiple times with exchanges and they always claim to be "hacked".  Its really sad because once they convert all that crypto to Monero it will be impossible to track.

The media are surely enjoying this event. It has become the trending topic on my crypto community. Luckily I never use this exchange since last year.


There is no fact yet to support your accusations. If you have some proofs or at least evidence suggesting this possibility then feel free to share. In fact, there's still a 'dispute' on how much actually got stolen.[1]


I don't think cryptopia is a top exchange, and even if they were, doing something stupid is quite possible. Maybe they make mistake here and there, and the 'hackers' use that.


I honestly doubt they don't use cold storage, but it's just speculation without any basis. We can only wait and see, and if there's time, probably track the transactions on the blockchain.

[1] https://www.chepicap.com/en/news/6626/what-we-know-of-the-cryptopia-hack-so-far-.html

I'm not saying that Cryptopia did not do an exit scam, as it's definitely very possible(and might even be most likely the case here), but we just can't make conclusions just yet. We know very little to just automatically call it an 100% exit scam.

We don't know what percentage of the total funds got stolen. They never claimed that 100% of all the funds got stolen.

We don't even know if the accounts got hacked or if their cold/hot storage itself got hacked. Again, we don't have enough information to make conclusions.

If they got on to the computer where they were stored, it would be easy. Cryptopia should have had the funds in cold storage, not in a hot wallet

Is it possible for hackers to have taken over the private keys of the exchange?

Im 100% sure that they manage that, for sure that the ""Hacker"" is the owner of cryptopia.

Cryptopia is an top exchange and they cant store more than 50% of cryptocurrency on offline wallet ? how stupid can be ?

Also !!! : if i remember cryptopia have 2k withdraw limit per day, how hackers manage that ? How they break that system ? as i know cryptopia say " Withdraw limit for security " ..... Another scamm exchange