Crypto Exchange Cryptopia Reveals Customer ‘Rebate’ Plan after $16 Million Theft

More than a fortnight since Cryptopia hinted at reimbursing users affected by a security breach that occurred in mid-January, the New Zealand-based cryptocurrency exchange has confirmed to customers that it will offer a ‘rebate’. This was revealed in an emailed statement that was sent to users:

There will be a rebate for customers who unfortunately lost funds. We are working through the logistics of this to ensure it is equitable and in compliance with local laws.

Compensation Plan Could be Implemented by Month-End

According to the crypto exchange, the reimbursement is likely to be concluded before April. Currently, the Cryptopia website is largely read-only. Users can, however, cancel standing orders. The New Zealand crypto exchange has disclosed that it is rebuilding its service from the ‘ground up again’.

Despite the security breach having occurred more than two months ago, there are still unanswered questions lingering. It is still unclear how much was lost in the hacking. Cryptopia only revealed that 9.4% of the crypto assets were lost. Experts, however, estimate that cryptocurrencies worth as much as $16 million could have been stolen. As a result, users still have no idea whether their crypto assets were affected by the hacking.

Cryptopia Users Still in the Dark

Currently, the balances that are showing on the website reflect the balance that was existing prior to the security breach. The hacking occurred on 14th January, 2019. Some users have expressed their anger saying putting the site back on now has not been helpful.

Users have also complained that the process of getting the exchange working again is taking too long. By mid last week Cryptopia only managed to transfer 35% of coins into new wallets.

Tax Returns Deadline Looming in New Zealand – To Write Off or What?

For its users in New Zealand, the looming deadline for filing tax returns makes it more urgent than ever. This is because they need to determine what they might have lost in the security breach in case they need to write off the assets.

Speaking to Newsroom, tax expert Tim Doyle said that opening the exchange by month end would greatly benefit taxpayers:

To write off any Cryptopia coins, it would be prudent to ensure that they will not be recovered. Having the exchange reopen before 31 March should provide certainty for their 2019 tax returns and allow traders to write off any hacked coins for tax purposes.

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Mark Emem @cointributor

After words, numbers are my other love... mostly when they are going up and they have nothing to do with taxes or expenses. That makes green my favorite color! Follow me @cointributor or email me at kointributor[at]gmail.com

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