New Zealand based Cryptopia Exchange’s problems only seem to get bigger post the hack on the platform earlier this year. The users on the exchange are set to lose another $2 million as it has been revealed that the exchange does not have any backup database, as it was controlled by a third party. The exchange is also rumored to owe some money to the third party service provider.
Cryptopia lost around $16 million during the hack and the recovery of the lost funds seems more difficult than it was being estimated earlier. The investigations are still underway, and the new revelations made during the investigation do not look good for the customers.
The lack of a database due to third-party dependency says a lot about the way of operations on the exchange which is far from professional. The exchange which started back in 2014, and saw a surge in popularity during 2017 did not really make efforts to streamline its operations and make it more robust. The hack in 2019 is a direct result of the casual approach of the exchange.
As of now, the exchange owes millions of dollars to the consumers as well as investors. Liquidators are trying their best to get access to as many wallets as possible, in order to tally up the funds to their respective owner. The task becomes near-impossible in absence of any back-up data and discovering about these exchanges gives an idea on how casually the exchange was being operated.
The third-party partner based in Arizona has already terminated its partnership with the exchange and wants $2 million in compensation. If the exchange fails to provide the asked amount chances are all the data with the firm will be lost forever. The path from here does not look promising either for the exchange or its users. It is to be seen what the final outcome of the investigation leads us to, but for the time being, users can only hope and pray for the best.