Cryptopia
The hack continues…
VIEW VIDEO HERE
Remember 15 days ago when Cryptopia first announced their security had been breached and hackers had stolen something like 3 million dollars worth of Ethereum and ERC20 tokens?
Well, 15 days later and despite the involvement of the New Zealand cyber security task force, the hackers are still raking in the coins. Turns out they’ve accrued over $16 million worth of cryptocurrencies. (This is many times more than what was originally reported.)
Cryptopia was never known for its superb customer service or transparency. I have a feeling we’re watching the slow death of a centralized cryptocurrency exchange.
This is not FUD, this is real.
Cryptopia has lost control of their Ethereum wallets.
These hackers now have control of these wallets.
If you use Cryptopia to store your Ethereum or ERC20 tokens, and you have already lost your coins, please take the hint that this exchange is not secure. The hack is not over, if you send coins to this exchange, you are giving those coins right to the hackers.
DO NOT USE CRYPTOPIA. THEY CANNOT SECURE THE COINS YOU TRANSFER THERE. YOU ARE TRANSFERRING COINS DIRECTLY TO THE HACKER.
For those of you who did not participate in the Proof of Keys event at the beginning of this month, let this be a reminder to you of the importance of knowing how to store your coins in a secure way that does not require the use of a third party like an exchange.
If you want to learn about the options you have for doing this, check out these links to some helpful videos here:
Know Your Options for Storing Your Cryptos
How to Setup Ledger Nano S
More news of failing centralized exchanges.
Liqui has shut down.
This one lasted a whole two years, but after its most recent update for their Terms of Service left a bad taste in the majority of their users mouths, it looks like liqui.io can’t provide the liquidity needed to exist as a viable exchange.
Questions you need to be asking:
- Why are these exchanges changing their terms of service to get your information?
- Where is the bottleneck?
- Who is feeling the pressure to comply with AML and KYC laws?
Here’s a hint: anonymity and decentralization are great tools that allow everyone to trade cryptocurrencies freely without giving up their right to privacy.
If you find yourself with some spare time, consider conducting a duck duck go search of things called decentralized exchanges, AKA DEXs.
Try to identify their strengths and weaknesses. This knowledge will prove to be invaluable to you when it allows you to make educated decisions on where you should be trading your cryptocurrencies.
For those of you who can’t wait to see those institutional investors enter this Bitcoin market, you’ll be happy to hear that Fidelity is planning on launching their Bitcoin custody service in March.
Fidelity is a large financial institution, when they provide the service of storing their clients Bitcoin investments in a secure manner, no doubt this will put some institutional investors minds at ease, and will probably see them more open to Bitcoin as an investment option.
All that being said, I think even the institutional investors need to understand what the proof of keys event means. Decentralize it.
Additional Reading/Links:
Cryptopia Lost Control
Proof of Keys Event
Liqui Closes Down
Fidelity to become BTC custodian