Cryptopia Outlines Rebate Plan And Trading Resumption Timeline

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The exchange has given affected users Cryptopia Loss Markers as a record of stolen funds, but there’s still a long way until reimbursements are issued.

After relaunching its website in a read-only format earlier this month, the New Zealand-based cryptocurrency exchange, Cryptopia, has now published a statement outlining the exchange’s plan to rebate users who lost funds during the January hack, as well as a timeline for the resumption of trading. Despite exit scam rumors, and reportedly losing 9.4 percent of its total holdings, Cryptopia’s co-founder, Rob Dawson, stated in the post that the exchange is “100% committed to reopening.”

When the read-only site was launched, Cryptopia stated that user balances would reflect their pre-hack total, which the exchange would use to calculate rebates. In the exchange’s new statement, Dawson details a rebate plan similar to that of Bitfinex’s following its June 2015 hack. Bitfinex’s recovery strategy involved issuing affected users US dollar-pegged BFX tokens as a record of their loss. The BFX tokens could be traded for shares in the exchange’s parent company, iFinex Inc., which would then be converted into Tradable Recovery Right Tokens, each representing the owners’ shares in the exchange.

Though Cryptopia’s statement provides only a rough sketch of the exchange’s rebate plan, it looks to be following Bitfinex’s route. According to Dawson, Cryptopia users will see withdrawals on their account for the funds they lost, and a subsequent deposit of what the exchange is calling Cryptopia Loss Markers (CLMs). The CLMs represent “the loss for each coin for each user in $NZD at the time of the event.” However, as of right now, a CLM is merely a “number in a database.” In the statement, Dawson explains that a CLM is not a coin, that it cannot be traded, and that there are more steps the exchange needs to take to ensure it follows a legal path toward issuing reimbursements. The post does not include information on when affected users can expect possible rebates or if the CLMs will be used for anything more than a loss marker.

While Cryptopia works to record and secure its users’ funds, Dawson also noted that the exchange does plan to resume trading at the end of this month. As the exchange ramps up to its full relaunch, it announced yesterday, March 18, that trading had resumed on 40 trading pairs that the exchange had deemed secure.

As for right now, Dawson writes in the statement that users can cancel any standing orders that were placed before the exchange went offline during the hack. Dawson also asks that users avoid depositing any funds into the exchange’s old wallets while it works to provide users with their new wallets.

Nicholas Ruggieri studied English with an emphasis in creative writing at the University of Nevada, Reno. When he’s not quoting Vines at anyone who’s willing to listen, you’ll find him listening to too many podcasts, reading too many books, and crocheting too many sweaters for his dogs, RT and Peterman.

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