The security breach which took place on the 14 January 2019 led to the loss of a significant amount of cryptocurrencies, including $2.5 million worth of ether transferred to an unidentified wallet.
The incident forced the crypto exchange to temporarily shut down its services as a preventive measure against further attack while they investigate the breach.
Although an official investigation has been launched Today by the New Zealand police, the security agency still has not been able to estimate the exact amount of the stolen cryptos.
The inquiry is still in its early stage, and the police authorities and Cryptopia will continue with their work until they figure out what happened. However, no time frame was given.
“We are dealing with a complex situation, and we are unable to put a timeframe on how long the investigation may take,” according to the police.
A twist of fate?
Unfortunately for the hackers, some of the stolen funds have been compromised, thanks to the watchful eyes of a crypto enthusiast who raised a red flag on Twitter that some of Cryptopia’s stolen funds were being sent to Binance exchange.
Changpeng Zhao, Binance CEO confirmed that the funds were indeed on his exchange’s wallet stating that they have frozen some of the funds.
Just checked, we were able to freeze some of the funds. I don’t understand why the hackers keep sending to Binance. Social media will be pretty fast to report it, and we will freeze it. It’s a high risk maneuver for them. https://t.co/i0PeahLzic
— CZ Binance (@cz_binance) January 16, 2019
Zhao said that he had no idea why the hacker(s) keep pushing the funds to Binance, and while it was difficult for him and his team to freeze the funds, they did it out of obligation to protect their users.
According to data on Ethereum Network, the hackers already transferred 31320 MTL ( app. $7,600) to binance.
This bold move by the Twitter user and Binance has shown that the crypto community can work together to combat hackers in the space.