A notice was released on the AurumCoin (AU) website yesterday (Nov 11) stating that the Cryptopia exchange was attacked and all AU coins are missing from the Cryptopia wallet. The strange thing that AurumCoin has pointed out is that Cryptopia seems not to have acknowledged any hack.
Aurumcoin claims that a total of 15,752.26 AU has gone missing from Cryptopia wallets.
51% Cryptopia Exchange Attack
AurumCoin is supposedly the first distributed open-source crypto to be backed by gold. The short statement on their website noted that the Cryptopia exchange had suffered a 51% attack. The rest of the statement is as follows:
“Aurum coin network is not the responsibility of anyone same as Bitcoin network, it is open source distributed crypto currency. What’s worse is that cryptopia exchange do not admit it. This is not the way to solve this problem.”
With so much AU reportedly missing from Cryptopia wallets, it seems strange that the exchange is keeping tight-lipped at this moment on the subject.
What is a 51% Attack?
A 51% attack on an exchange is when a nefarious actor (or actors) is able to take control of the majority of a network's hashing power. In theory this would grant them control of the confirmation of transactions - stopping new transactions, reversing transactions and double spending coins.
Cryptopia is one of the largest crypto exchanges in New Zealand and is known for listing a wide variety of coins. Many smaller cap altcoins began life on Cryptopia. It remains to be seen if and when the exchange will release a statement on the alleged hack.