Cryptoia Exchange hack resulted in a theft of $16 million worth of Ether. The hack apparently took place back in January this year, after which the exchange shut its operation. However, it never revealed any details of the hack, and it was independent analytical firms which estimated the amount of hack to be around $16 million.
Cryptopia has entered into liquidation phase, and despite that hackers have been able to transfer the robbed funds to multiple wallets. The exchange shut its trading operation on May 15, and also posted a message regarding the liquidation phase. The message read,
“Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was, in the best interests of customers, staff and other stakeholders. …Given the complexities involved, we expect the investigation to take months rather than weeks.”
According to sources, the hackers are moving the stolen funds to at least 4 wallets all of which are connected to Houbi. The hacker first moved 30,790 ETH worth $7.67 million from one address to another new address on 20th May. The wallet still has 29,770 ETH.
Two other wallet addresses received a total sum of 1010 ETH, while the fourth wallet address only has 10 ETH in Huobideposit address. Looking at the pattern of the moving funds, it seems hackers are planning to cash out the hacked amount through Huobi.
Cryptopia hack surely made headlines at the time, however, the exchange refused to reveal any detail on the hack, and after three months of continued attempts to bring the exchange back to being fully operational, it seems the damage caused by hackers is beyond repairable. The exchange has decided to go for liquidation to compensate for the losses of consumers as well as the stakeholders.
The move by hackers to cash out the theft also seems quite timely given investigations in the matter would take months.