Cryptopia Resumes Trading on 40 Trade Pairs while BTC, ETH, & LTC Holders to get 14 to 100% “Haircuts”
New Zealand-based cryptocurrency exchange, Cryptopia that suffered a security breach more than two months back and lost about $16 million in theft is slowly getting back up. The exchange has announced that it is resuming 40 trade pair that the company has “quantified as secure.” This list will be further expanded as more coins are cleared.
The complete list of coins can be found here.
Founders of the company Adam Clark and Rob Dawson are also back into Cryptopia with focus on setting a “clear strategic direction moving forward.” The firm had reported in late February, that they have calculated the “worst case 9.4% of our total holdings was stolen.”
Just a few days back, the exchange had also reported that they have secured 35% of coins to new wallets. And before the exchange is opened, this exercise needs to be completed.
In its official email sent to its clients, Cryptopia assures its customers that they will be coming bigger and better.
“You may have heard various comments about this event being an exit scam but rest assured we are 100% committed to reopening the exchange, bigger and better and to continue trading.”
Rebate for Customers who Lost Funds
Currently, the site is in “read only,” while providing the users the ability to cancel their standing orders. For now, the exchange says no new funds to be deposited.
However, there are some elements that will be affecting the people who have lost their coins, quite severely. Cryptopia has announced a “rebate for customers” plan those who have lost funds.
“There will be a rebate for customers who unfortunately lost funds. We are working through the logistics of this to ensure it is equitable and in compliance with local laws.”
As per the site, when it comes to Bitcoin, about 86% of it is secured that means a 14% haircut will be processed. For Litecoin, 43% haircut will be processed as only 57% are secured. However, with Ethereum 100% haircut is processed because 0 percent of cryptocurrency has been secured.
For now, withdrawal and deposits are offline until the new hot wallets are ready.
These reductions in the asset value here is the haircut that is expected to be based on deposits which are a way to spread the losses across all the asset holders so that one individual doesn’t bear all the losses.
At the time of writing Bitcoin has been trading at $$4,060 with 24-hours gains of 1.06 percent and Ethereum is sitting at $140.66 with 24-hours gains of 1.01 percent while Litecoin is trading at $60.82 with 1.46 percent greens in the past 24-hours.