New Zealand Police Calls Cryptopia Hack ”Complex”, Binance Able to Freeze Some of the Funds

New Zealand Police Calls Cryptopia Hack ”Complex”, Binance Able to Freeze Some of the Funds

Earlier this week, cryptocurrency exchange Cryptopia suffered a substantial security breach, allowing hackers to make away with 19,390 ETH. Now, it would appear that Binance was partly able to foil the hackers’ transaction – as New Zealand police start investigations.

New Zealand authorities investigate Cryptopia hack, examining ”all possibilities”

First and foremost, New Zealand police authorities have publicly ceded that the recent cryptocurrency hack is a ”complex” matter. The hack saw between $2.5 million to $3.5 million worth of Ether (ETH) and Centrality (CENNZ) tokens lost.

Although police authorities have, so far, refrained from releasing an official figure, it is said to be a ”significant amount.” Reports also indicate that New Zealand authorities have dispatched a large investigative team to Cryptopia’s Christchurch offices.

This investigative team supposedly consists of both members from New Zealand’s specialized cybercrime division, the High Tech Crime Unit, as well as Canterbury CIB.

Nevertheless, the reported ”complexities” of the hack mean that law enforcement is currently considering ”all possibilities” – supposedly including the risk that Cryptopia themselves might have been involved in the attack.

That being said, it does not seem overly likely this is the case. Cryptopia is currently engaging in ”full cooperation” with authorities, likely in order to dispel theories of an exit scam or internal hack.

Binance managed to freeze ”some of the funds”

The blockchain security firm Hacken noticed the hack when 19,390 ETH was transferred from Cryptopia’s tagged wallet. It now seems as if Hacken’s quick discovery might have played a crucial part in preventing part of the hackers’ proceeds from being taken.

Specifically, Binance’s CEO Changpeng Zhao recently revealed that the cryptocurrency exchange had been able to retain some of the funds. He also questioned why attackers insist on sending stolen funds to Binance.

”Just checked, we were able to freeze some of the funds,” Zhao noted in a tweet. ”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.”

However, it is still unclear exactly what amount of the funds was able to be frozen by Binance. Cryptopia released a tweet yesterday, stating that the firm would be unable to comment on the issue as it is in the hands of the ”appropriate authorities.”

It remains to be seen how this story continues to develop. In the meanwhile, Toshi Times’ extensive guide to hardware wallets can be a great start to keep your cryptocurrency safe.

Image Credits: “Flickr”

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