Thousands of users of Cryptopia “hide” in desert islands

February 16, 2020 by Victor

After the case of piracy on the platform for the exchange Cryptopia, two liquidators from Grant Thornton, Malcolm Moore and David Ruscoe, testified at the court of Christchurch on the turnaround of the current situation.

They have fooled the control KYC

The persons responsible for the management of the assets of the Grant Thornton have announced that the accounts of registered users to the crypto-exchange-Cryptopia contain the same user name and same password. In effect, 933 000 accounts have been suspected by the liquidators, which explains the lack of vigilance of the platform in the course of creation of the accounts of its customers.
Indeed, this failure of the review of personal identity and has allowed the attackers to find a way to create multiple fake accounts, customers holding 23 million of the 44 000 registered have not passed the process of internal audit.
In addition, the site is home to 2.2 million users from the United States, the netherlands, Great Britain, India, and Russia, which 9475 are new zealanders. Oddly enough, the accounts which represent assets of more than $ 3 million (dollar NZD), according to the report of NZHerald.com, are based in isolated islands of Australia where they are free from any kind of traceability.
Fortunately, the authorities intervened promptly reinforcing norms KYC (knowledge of customers), while imposing a maximum amount of transaction allowed in the order of $500,000.

Hacked for the second time

At the beginning of the year 2019, the exchange has been hacked twice and lost $ 24 million in total. Despite his attempts to resume his service two months after the incident, the liquidators have taken the initiative to repay the sum of $ 8 million to the victims.
The piracy has started in Arizona, where the data of the platform have been stored. By vigilance, the crypto-exchange has adopted a policy of conservation of the funds of its users in a portfolio mixed in order to conceal the identity of the investor.
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