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Expert: Police Hardly Able to Solve Cryptopia Hack Case. Police: Hackers Never Came Back for Second Attack

Wed, 02/06/2019 - 16:02
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Yuri Molchan
An expert in corporate legislation doubts that the local police and authorities are skilled enough to handle such a complex crime due to lack of proper regulation
Expert: Police Hardly Able to Solve Cryptopia Hack Case. Police: Hackers Never Came Back for Second Attack
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As reported earlier by U.Today, on January 13 the New Zealand-based Cryptopia exchange lost a great amount of its customers’ funds as a result of a hacker attack – around $3.5 mln in ETH and CENNZ tokens.

Later on, the exchange reportedly experienced another attack. The culprits reportedly used the same address wallet to withdraw another $3.2 mln in virtual coins. The transactions were spotted on Etherscan.

The investigation must go on

The police in the city of Christchurch got on the case along with the local authorities. However, an associate professor from Auckland University, Alex Sims, who is also an expert in commercial law, is raising public doubt whether the police have sufficient skills to do the investigation fruitfully.

The investigation must go on

She believes that the investigation has not been handled properly and that the authorities are having difficulties handling this cybercrime.

Lagging behind the US and Japan

Alex Sims believes that the authorities in New Zealand have not done anything in order to implement necessary regulations to protect crypto investors. She compares the situation with that in other countries where crypto trading is approved – the US, Japan, and the EU – and points out that trading operators in those locations have already implemented the necessary custodial customer services.

Crypto and everything to do with that, says Sims, is a legal business and regulations must be adopted, because blockchain and virtual assets are here to stay.

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Radio silence from Cryptopia’s CEO

The director of the hacked exchange, Pete Dawson, has not given any comments on the situation, since the police have recommended him not to do so, as to not interfere with the investigation accidentally. For this Alex Sims criticized him too.

Dawson reckons that the tokens stolen by the hacker are being sold through other exchanges, supposedly, through EtherDelta.

Several media reports have mentioned that Cryptopia is to resume operations later this month, though its spokesperson did not confirm this statement.

There was no second hacker attack

A short while after the malicious attack and stealing the crypto from Cryptopia, the CEO of a blockchain analytical agency, Max Galka, published a blog post saying that several million dollars more were stolen from Cryptopia again – withdrawn onto the same address. However, the police, investigating the first virtual robbery, rejected this announcement, calling it rumours.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at