Cryptopia: Authorities Allow Hacked Exchange to Reopen, but It's Still Down

Hacked cryptocurrency exchange Cryptopia has recently been given by New Zealand’s authorities the green light to “open again whenever they like,” roughly a month after hackers accessed it wallets and stole cryptos estimated to be worth dozens of millions of dollars.

According to local news outlet NZ Herald, detective inspector Greg Murton has revealed authorities “finished the main part of the work required by the High Tech Crime Group” at the cryptocurrency exchange’s business premises, and that although some staff remain there “finishing up aspects of their work,” the exchange is free to reopen.

Murton was quoted as saying:

Cryptopia management have full access to their facilities and business premises and the Police investigation is not preventing their business from getting up and running again.

The detective inspector, however, refused to comment on exactly how much was stolen from Cryptopia’s wallets, or on whether any changes have been implemented. Despite the green light to reopen, at press time Cryptopia’s website is still down, with a message explaining what happened to its users.

While some experts have estimated hackers managed to take roughly $23 million in the attack, the exact figure is unclear. The hack itself was an unusual one, as according to an investigation conducted by Elementus 76,000 wallets were penetrated in the attack, meaning thousands of private keys were obtained.

Elementus’ research only used Ethereum and ERC-20 tokens evidence, and found that in the attack there was a glaring “lack of urgency,” as it lasted weeks, while usually attacks on exchanges are fast and only see one wallet get breached.

Murton, speaking to the NZ Herald, refused to comment on whether the hackers kept stealing funds after police started its investigation, or on whether some of the stolen cryptocurrencies had been frozen by another exchange.

An unnamed Cryptopia staff member reportedly told the news outlet he had no idea whether it would reopen, as he was “relying on police bulletins and the media for updates.” Meanwhile, as CryptoGlobe covered, the hackers behind the attack have already cashed out $3.2 million, $2 million of which through decentralized exchange EtherDelta.

BBC: Facebook Planning to Launch ‘GlobalCoin’ in Q1 2020

Siamak Masnavi

Social networking giant Facebook is planning to launch its own cryptocurrency (internally dubbed "GlobalCoin") and crypto-powered global payments network (internally called "Project Libra") worldwide by Q1 2020, according to a report published earlier today by BBC News, the world's largest broadcast news organization.

Project Libra's Origin Story

  • 8 May 2018: In a post on Facebook, David Marcus, the former head of Messenger, who was at that time also a board member (since December 2017) of crypto exchange Coinbase, revealed that he was leaving that role to set up a new group focused on exploring applications of blockchain technology across the whole of Facebook.
  • 13 December 2018: Cheddar reported that Facebook’s blockchain group is planning to "potentially disrupt the entire payments industry":

"At a private dinner Facebook hosted during a recent crypto conference, one attendee told Cheddar that Facebook employees pitched the idea of creating a decentralized digital currency for the social network’s 2 billion users."

  • 21 December 2018: Bloomberg reported that Facebook was creating its own cryptocurrency (a stablecoin) for money transfers within its highly popular messaging app WhatsApp.
  • 28 February 2019: The New York Times confirmed Bloomberg's earlier story, and said that, according to its sources, this project was "far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to consumers."
  • 8 April 2019: Nathaniel Popper, one of the two journalists who wrote the report in the New York Times, provided this update (on Twitter) about Facebook's cryptocurrency project:
  • 2 May 2019: The Wall Street Journal reported that Facebook was "recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system," and that the core part of this initiative (code-named "Project Libra") is "a digital coin that its users could send to each other and use to make purchases both on Facebook and across the internet." Furthermore, this report said that, according to people familiar, Facebook was talking to "financial institutions including Visa Inc., Mastercard Inc. and payment processor First Data Corp." about investing in this project.
  • 17 May 2019: A report by Reuters said that FinTech company Libra Network was registered in the Republic and Canton of Geneva on May 2. Looking at the entry for Libra Networks, which was published on May 7 in the Swiss Official Gazettte of Commerce (SOGC), tells us:
    • Libra Networks LLC (registration number: CHE193533388) has its registered office in Geneva.
    • According to the English translation, the stated purpose of this company is "provision of services in the fields of finance and technology, as well as the development and production of related software and infrastructure, particularly in connection with investment activities, the payment operation, the financing, identity management, data analysis, big data, blockchain and other technologies."
    • The share capital is CHF 20,000 (100 shares, each with a nominal value of CHF 200); all of the shares are owned by Facebook Global Holdings II, LLC.

Facebook's Stablecoin: GlobalCoin

Here is what we have learnt from the BBC News report:

  • Facebook "is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020."
  • The plan is to start testing the new cryptocurrency (some kind of stablecoin), GlobalCoin, by the end of 2019.
  • Facebook has been getting "advice on operational and regulatory issues" from the UK's central bank governor Mark Carney (whom Facebook founder and CEO Mark Zuckerberg reportedly met in April) and from U.S. Treasury officials.
  • Facebook is also in talks with global remittance firms such as Western Union "as it looks for cheaper and faster ways for people without a bank account to send and receive money."

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