Prohashing to cover customer losses from Cryptopia hack
Posted: Tue Jan 15, 2019 2:21 pm
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!
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!
