• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Polymarket Set To Go Live In The US Following CFTC Approval, Says CEO
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Polymarket Set To Go Live In The US Following CFTC Approval, Says CEO
cryptopia exchange

Hacked Exchange Cryptopia Was in Breach of AML Requirements

Christina Comben
by Christina Comben
5 years ago
·
Posted in Bitcoin Exchange, News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Things go from bad to worse for users of hacked New Zealand-based cryptocurrency exchange Cryptopia. Its liquidators Grant Thornton have today revealed that the exchange failed to meet its AML obligations when creating new user accounts.


Cryptopia Breached AML Laws Before the Hack

Cryptotopia liquidators have had an uphill battle all the way when it comes to recovering users’ assets. The shady practices of the hacked-then-liquidated exchange included pooling users’ assets into a co-mingled wallet.

Cryptopia hack

Now, according to the New Zealand Herald, Grant Thornton told a High Court at Christchurch on Tuesday that the company had breached its AML requirements when onboarding new customers. Liquidators Malcolm Moore and David Ruscoe’s affidavit said:

[We] have given careful consideration to the limited personal identification information available because, in our view, it raises various issues including anti-money laundering compliance.

Ruscoe has been working closely with the New Zealand Department of Internal Affairs as well as the Police regarding the company’s AML compliance policies. But their efforts have been hampered by a dearth of user information. In fact, for some 933,000 active accounts, there is no more to go on than a username and email address.

The Seedy Inner Workings of Cryptopia

Grant Thorton has so far uncovered that at least 100 customers that wanted to trade to a limit of $500,000 had sent proof of their identification. This included a selfie holding their national ID document along with a statement that explained the source of their funds. Their address was then apparently verified by Cryptopia using Google Maps.

But that’s a very small drop in the bucket for Cryptopia’s 2.2 million accounts with next to no information at all, most of which were based offshore. The bulk of Cryptopia users resided in the US, the UK, the Netherlands, Russia, Brazil, and South Korea. Cryptotopia had less than 10 thousand users in its native New Zealand.

no user data

Worse still, as many as 44,000 early customers holding $23 million were never verified nor had any type of trading limit imposed. 

Adding further insult to injury is the fact that “thousands of accounts” holding over $3 million have been traced to remote islands near Australia that are uninhabited. Thousands more could not be traced to any location at all.

Traders Must Provide More Info to Reclaim Assets

After the infamous hack of January 2019, in which some $24 million in crypto assets was reportedly stolen, the struggling exchange attempted to open its trading doors again. Unsurprisingly, it failed to regain the trust of its users and was forced into liquidation in May of the same year.

Its liquidator’s affidavit states that the theft involved many cryptocurrencies including bitcoin, ether, and litecoin. These assets were being held in a data center in Arizona to which the liquidators had to travel to retrieve customer information.

A four-day hearing was to begin this Tuesday at the Christchurch High Court to determine ownership of the partially recovered crypto-assets (now reported to be worth as much as $250 million), in order to transfer them back to traders.

However, Cryptopia liquidators are still painstakingly trying to identify individual accounts as the funds were pooled together in a merged wallet. Moreover, the latest evidence of the exchange’s AML breach throws yet another wrench in the works.

Before assets can be returned to traders, its liquidators stated that they would need to provide additional identification information to comply with anti-money laundering laws.

According to its second report in Dec 2019, Granth Thornton had recovered some $5 million in assets from a third-party account and had some $7 million on hand to fund the liquidation.

What do you make of these latest Cryptopia developments? Add your thoughts below!


Images via Shutterstock

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christina Comben

Christina Comben

Follow

Full Profile

Related Posts

solana-analyse-tendance-leviers-techniques

Solana en route vers les 300 $ : analyse de la tendance des leviers techniques

2 days ago
stablecoins

Yuan-Pegged Stablecoins On The Horizon As Beijing Rethinks Policy

2 weeks ago
Bitcoin

Strategy’s Bitcoin Gameplan Faces Dark Outlook As Expert Warns Of ‘Spiral Of Doom’

2 weeks ago
Bitcoin

Bitcoin Strategist Sounds Alarm On Rising Violent Attacks In 2025

3 weeks ago
Trump

Eric Trump Says ETH Shorts ‘Got Smoked’ As Bitcoin, Ethereum Surge

3 weeks ago
XRP

XRP Investors Targeted: Ripple Flags Surge In YouTube Scams

1 month ago
Please login to join discussion

Premium Sponsors

Press Releases

  • MemeCore...

    4 hours ago
  • XRP is expected to break through $7. APT Miner helps...

    11 hours ago
  • miner

    Expectations of a Federal Reserve rate cut and demand for...

    15 hours ago
  • miner

    BlackRock suspends XRP listing, price faces resistance...

    15 hours ago
  • miner

    The September Curse Returns: How Crypto Investors Can...

    15 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.