Prohashing to cover customer losses from Cryptopia hack

[Steve Sokolowski]

Earlier today, exchange Cryptopia was hacked. The amount of money stolen from Cryptopia's customers was not disclosed, but we assume that there is either a total loss, or that it will be 2025 before the bankruptcy attorneys are able to distribute whatever small amount remains from liquidation.

Cryptopia was one of the largest exchanges we used. Prohashing's documentation (https://prohashing.com/help.html) states that when money is stolen from an exchange, the losses are passed on to customers. In this case, the company lost $2,455.69. Despite that, we decided we will pay customers from our personal accounts. Our goal is to offer the most reliable and trustworthy service possible, and we set our fee targets so that problems like this do not have to impact our customers. The 99% of customers who earned any coin listed by at least one other exchange, like Bitcoin, Bitcoin Cash, Dash, Verge, NewYorkCoin, etc. will be paid in full.

Unfortunately, there are some coins that were only listed by Cryptopia. In some cases, we have enough of these coins in our local wallets to pay customers. In about 1% of cases, we owe a balance greater than what we have in the local wallet, and we cannot obtain the difference because no other exchange that accepts US customers lists the coin. If you are owed one of these coins, your account will continue to show the balance. You'll be paid in future months or years if Cryptopia reopens or if another exchange lists the coin. One caveat: with these coins, we reserve the right to limit payouts in a coin if it grows more than 1000% over its dollar value right now.

Chris will be releasing new payout code tomorrow. To ensure that payouts are accurate, he will delay payouts until later than usual so that he can verify the correct amounts. Payouts will still be paid within the normal 24 hour window. If verification of the amounts causes payouts to be processed very late in the day, that does not indicate we have changed our decision to cover the losses.

Thanks for mining with us, and we hope that the Cryptopia hackers are brought to justice!

[dnprod]

is cryptopia in new zealand where Big Vern went to hide?

but, wow. thats a big chunk of exchangeabilty gone.

[dnprod]

i once suggested you set up a lawyer or accountant in canada to act as a 'canadian branch ofice address' for prohashing.com so you could take advantage of our quadrigacx.ca exchange fiat capabilities.
it seems now a doubly good idea so you can use Novaexchange.
Nova has such a nice big variety of altcoins.

a VPN will of course bypass any simple 'technical' blocks to being a USA user.

become the worldwide megacorp you were destined to be

[dnprod]

https://bitcointalk.org/index.php?topic=5097916.0

[Steve Sokolowski]

i once suggested you set up a lawyer or accountant in canada to act as a 'canadian branch ofice address' for prohashing.com so you could take advantage of our quadrigacx.ca exchange fiat capabilities.
it seems now a doubly good idea so you can use Novaexchange.
Nova has such a nice big variety of altcoins.

a VPN will of course bypass any simple 'technical' blocks to being a USA user.

become the worldwide megacorp you were destined to be

We were actually Novaexchange's largest customer before they changed their policy.

The problem with them now is that they don't have enough liquidity, probably because they turned away many of their customers. Most coins would be in error because mining just a few blocks would drive the price down too much.

[Rakly3]

Hi, I thought I'd ask here instead of starting a new thread.

First, I am not demanding compensation from ProHashing
Now that that's out of the way:

Last night I requested an LTC payment assuming I already had changed the adress to Binance.
Turns out I didn't and the coin is sent to Cryptopia. (Yeah, after the hack...)

1. Is it possible for Cryptopia to send it back to the prohashing adress it came from? Do you know if they do or not?
2. Can you reimburse it if they do?
3. In a "I can't believe how stupid I am" fit I changed my LTC address without writing down the Cryptopia address. Is there any way any one at prohashing can retrieve the address? My Username is Rakly3 on the mining site aswell.
4. it's only about $30 so don't sweat it
5. If any one has some other advice or info, feel free to share
6. Thanks!