Cryptopia exchange did not use individual wallets to store customer cryptocurrencies

The company Grant Thornton, engaged in the liquidation of the hacked cryptocurrency exchange Cryptopia, announced new investigation results.

According to a statement posted on the company’s website, Cryptopia did not use individual cryptocurrency wallets. Instead, the platform stored the assets of all customers in shared wallets. Thus, liquidators face difficulties in determining the amounts held by customers.

Grant Thornton claims to have to manually verify wallet pool data with customer information. An excerpt from the report reads:

“We are working on reconciling the accounts of more than 900,000 customers, many of whom own several crypto assets, millions of transactions and more than 400 different crypto assets. These data must be consistent in sequence. ”

A Grant Thornton statement revealed significant progress in customer data recovery. Previous report
companies showed some difficulties in obtaining a database of customer assets from a data center in the United States. This data contained detailed information about the client assets of the platform and some deposits in cryptocurrencies. Grant Thornton takes steps to protect all cryptocurrencies to prevent another hack.

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Affected Exchange customers Grant Thornton announced that they will have to go through KYC checks as part of the refund process. Even those customers who have been fully tested during the opening of an account on the exchange will have to re-submit their data. Grant Thornton is awaiting court approval to begin a customer refund as soon as it completes the reconciliation process.

Cryptopia was hacked earlier this year.
and the work of all its services is stopped. The platform team confirmed a violation of the security system and stated that the site’s losses were “significant”. Later, the research company Elementus estimated that as a result of the hacking, Cryptopia lost $ 16 million in cryptocurrencies.