Cryptopia, a New Zealand altcoin exchange suffered a significant setback. The exchange got hit with a security breach which resulted in enormous losses. The funds are said to be siphoned through various exchanges such as Binance and KuCoin which both exchanges have confirmed freezing.
Hackers Prevented from Cashing in by Major Exchanges
Security breaches have always been a challenge to most cryptocurrency exchanges for a long time now with Cryptopia being the recent victim. Cryptopia has not yet released the exact amount stolen as a result of the hack due to the police investigation that’s ongoing.
However, according to the transaction analysis, the amounts were enormous with several of them being siphoned to various external wallets as well as third-party exchanges. The exchanges include the world’s leading exchange-Binance and KuCoin.
Now it seems that the exchanges are doing all they can to ensure that the hacks don’t get what is not theirs by freezing all funds from Cryptopia. According to Changpeng Zhao, Binance CEO, via a twitter account, they were able to identify illicit transactions making attempts to sell and freeze them.
KuCoin CEO Michael Gan showed the same commitment of fighting fraud as well as protecting user funds through his twitter account. On his tweet, Gan made assurance to the public that KuCoin will as well freeze any funds from the Cryptopia breach.
Social Media Playing a Role in Blockchain Security
Watchdogs are monitoring any suspicious blockchain transactions, and it’s through social media that moves to the exchanges were noted. There were several allegations that the stolen funds were being received on the other end by such exchanges like Binance. Later, Binance CEO went on to confirm the allegations.
The exchange had announced a temporary shutdown after which the stolen fund transfer occurred. As a result, many may believe the incident as to being an inside job but no response from Cryptopia yet as they claim the matter is on the hands of the police.
Breaches are still a serious risk to the stability as well as the adoption of cryptocurrency and if it continues the confidence and trust of investors may be eroded.