Cryptopia Crypto Exchange Review: What Happened and Why It Failed

Cryptopia was once one of the most popular crypto exchanges for altcoin traders. At its peak, it offered over 900 cryptocurrencies - more than almost any other platform at the time. If you were into obscure coins like PIRL, PAC, or DOTCOIN in 2017 or 2018, Cryptopia was probably your go-to. But today, it doesn’t exist. No website. No app. No customer support. Just a ghost in the history of cryptocurrency.

How Cryptopia Grew So Fast

Cryptopia launched in July 2014 in Christchurch, New Zealand. It wasn’t flashy. It didn’t have fancy marketing. But it had something most exchanges didn’t: a massive selection of altcoins. While Binance and Coinbase stuck to Bitcoin, Ethereum, and a few top tokens, Cryptopia listed hundreds of obscure projects. If you wanted to trade a coin no one else had, Cryptopia was the place.

By 2017, it had 30,000 users. By early 2018, that number jumped to 1.4 million. Trading volume sometimes exceeded the New Zealand Stock Exchange. The platform even launched its own stablecoin, NZDT, pegged to the New Zealand dollar - the first of its kind in the country. It had a daily lottery, arbitrage tools, and a Coininfo page that gave detailed info on every listed coin. For altcoin hunters, it was paradise.

Fees were low - just 0.20% per trade. That made it attractive compared to other exchanges charging up to 0.5%. The interface wasn’t pretty, but it worked. For a while, users didn’t care.

The Cracks Started Showing

But behind the scenes, things were falling apart. As users poured in, the platform couldn’t keep up. Trading froze for Dogecoin and Litecoin in early 2018 because the system couldn’t handle the load. New account signups were temporarily shut down. Withdrawals took days - sometimes weeks. Wallets for certain coins would just disappear from the site for months.

Users started complaining. On Trustpilot, 47 out of 52 reviews were negative. Common complaints? Customer support ignored messages. When they did reply, they were rude. Some users reported being told to "fuck off" if they asked for help. The only way to get a response was to tweet at them.

The NZDT stablecoin project collapsed when ASB Bank, one of New Zealand’s largest banks, cut off Cryptopia’s banking relationship. No bank account meant no way to convert NZDT to real money. That was a major blow. It showed how fragile the whole operation was - built on shaky infrastructure and zero regulatory backing.

Internal issues were just as bad. Leadership was chaotic. Executives resigned. Employees described a toxic workplace. No one seemed to be in charge. And no one was fixing the security problems.

The Hack That Killed Cryptopia

On January 14, 2019, Cryptopia announced a massive hack. Hackers stole around NZ$16 million in cryptocurrency - mostly Ethereum, Litecoin, and Bitcoin. The exchange shut down trading immediately. Then, it shut down everything.

But here’s the thing: many users didn’t believe it was a hack.

On G2 and Offshorereviews.com, people claimed the hack was fake. One user wrote: "Cryptopia used Dotcoin from the beginning to silently take criminal action." Another said their PIRL wallet was broken for the entire month of February - and when they finally got their coins out, the value had dropped 90%. They weren’t alone. Hundreds reported similar stories.

The New Zealand High Court appointed Grant Thornton as liquidator in May 2019. The goal? Recover money for the 900,000 users across 190 countries who lost funds. The results? Grim.

Total claims from users: NZ$180 million. Recoverable assets: NZ$70 million. That means most users lost 60-70% of their money. Some got nothing. Others got pennies on the dollar.

Years later, in 2022, liquidators reported only partial recovery. No one expects to get their money back. The exchange is dead.

Crumbling digital temple of Cryptopia with code vines and shadowy figures stealing coins.

Why Cryptopia Failed When Others Survived

Cryptopia didn’t fail because crypto prices dropped. It didn’t fail because regulation cracked down. It failed because it grew too fast without the systems to support it.

Compare it to Binance. Binance scaled too, but they invested in security, infrastructure, and compliance. Cryptopia didn’t. They added coins like crazy but never upgraded their wallet systems. They didn’t use multi-sig wallets. They didn’t have cold storage properly secured. They didn’t hire enough engineers.

They also ignored user trust. When withdrawals stalled, they didn’t communicate. When users asked questions, they ghosted them. When the hack happened, they didn’t have a clear plan. They just shut down and disappeared.

Other exchanges had problems too - Mt. Gox, Bitfinex, FTX - but none collapsed quite like Cryptopia. It wasn’t just a hack. It was a slow-motion disaster. A company that ignored every warning sign until it was too late.

What You Can Learn From Cryptopia

If you’re trading crypto today, Cryptopia’s story is a warning.

  • Don’t keep large amounts on any exchange - especially small ones with low volume. Use cold wallets for long-term holdings.
  • Check if the exchange has a history of downtime. If withdrawals take longer than 24 hours, that’s a red flag.
  • Look at user reviews. Not the ones on their website. Look on Trustpilot, Reddit, or independent forums. If people are angry about support, walk away.
  • Don’t trust obscure coins on unproven exchanges. Many of the coins listed on Cryptopia were scams or dead projects. You lost money not just because of the hack - but because the coins you held were worthless.
  • Know your exchange’s location. Cryptopia was in New Zealand, which made legal recovery nearly impossible for users outside the country. If an exchange is based in a place with weak consumer protections, you’re at risk.
Fading ghost of Cryptopia website with users reaching for disappearing coins and legal documents.

The Aftermath: No Recovery, No Hope

As of 2025, Cryptopia’s website is offline. Its domain expired. Its social media accounts are abandoned. The liquidation process is still dragging on, but no one expects a full payout. The New Zealand courts have moved on. The users? Most have given up.

There’s no comeback plan. No new team. No revival. Cryptopia is a tombstone in the crypto graveyard.

It’s a reminder that in crypto, popularity doesn’t equal safety. Volume doesn’t mean security. And if a platform feels too good to be true - with too many coins, too little support, and no transparency - it probably is.

Frequently Asked Questions

Is Cryptopia still operating?

No, Cryptopia ceased all operations after a major hack in January 2019. The exchange filed for bankruptcy, and its assets are being liquidated. The website and services have been offline since then, with no plans to return.

Can I get my money back from Cryptopia?

Possibly, but not fully. Liquidators recovered about NZ$70 million from an estimated NZ$180 million in user claims. Most users lost between 60% and 70% of their funds. Payments have been slow and partial, and many users received nothing. Recovery is unlikely to be complete.

Was the Cryptopia hack real or a scam?

The hack was real - hackers stole funds from Cryptopia’s wallets. But many users believe the exchange used the hack as cover to steal money themselves. Reports from users showed wallet issues and coin delistings long before the hack, and some coins lost value immediately after being listed. The lack of transparency and poor security practices make it hard to trust the official story.

Why did Cryptopia list so many coins?

Cryptopia targeted altcoin traders who couldn’t find obscure tokens on bigger exchanges. By listing hundreds of coins, they attracted users looking for early-stage projects. But this also made the platform risky - many of these coins were scams, had no real value, or were manipulated by insiders. The sheer number of coins overwhelmed their system and made security harder to manage.

What made Cryptopia different from Binance or Coinbase?

Cryptopia focused almost entirely on altcoins - over 900 at its peak - while Binance and Coinbase stuck to top-tier coins like Bitcoin and Ethereum. Cryptopia also had unique features like a daily lottery and arbitrage tools. But unlike those larger exchanges, it had weak security, poor infrastructure, and no institutional backing. It was a niche platform that grew too fast without the systems to support it.

Tags:

18 Comments

  • Image placeholder

    Tyler Porter

    December 26, 2025 AT 22:41
    Man, I remember trading PIRL on Cryptopia like it was yesterday. That platform was a mess, but I loved it. I'd stay up till 3 a.m. just to catch a pump. Now? I keep everything in cold storage. Lesson learned the hard way.
  • Image placeholder

    Cathy Bounchareune

    December 27, 2025 AT 01:45
    Cryptopia was like that wild, chaotic bazaar where you could find anything - but half the vendors were con artists. Still, I miss the thrill. Nowadays, I only trade on exchanges with real human support. And no, I don’t mean a bot that says 'We’re sorry for the inconvenience.'
  • Image placeholder

    Jordan Renaud

    December 28, 2025 AT 17:40
    It’s funny how we romanticize these failures. Cryptopia wasn’t just poorly run - it was a mirror. It showed us that when greed outpaces responsibility, even the most enthusiastic communities crumble. We all wanted the dream. Few wanted to build the foundation.
  • Image placeholder

    Luke Steven

    December 29, 2025 AT 12:59
    I think the real tragedy isn't the hack. It's that people kept trusting them after the withdrawals started taking weeks. I watched friends pour more money in, hoping it'd fix itself. It never does. You can't out-hope bad engineering.
  • Image placeholder

    Ellen Sales

    December 29, 2025 AT 22:03
    LMAO the NZDT stablecoin. Like, congrats, you made a crypto pegged to a currency that’s basically just 'tea and sheep' money. And then the bank said 'nah' and poof - gone. Classic.
  • Image placeholder

    Sheila Ayu

    December 30, 2025 AT 11:58
    Wait, so you’re telling me a platform that listed 900 coins, had zero security, and ghosted support for months was ever considered 'trustworthy'? Who even used this? I’m not mad, I’m just disappointed. And also, I told you so.
  • Image placeholder

    Janet Combs

    January 1, 2026 AT 05:46
    I still have a screenshot of my PIRL balance from Feb 2018. It was 20,000. Now it’s worth $0.03. I didn’t even cash out. I just… forgot about it. Like a bad ex. You don’t delete them, you just stop checking their Instagram.
  • Image placeholder

    Radha Reddy

    January 2, 2026 AT 22:36
    This story is a sobering reminder that innovation without governance leads to collapse. In many emerging economies, we see similar patterns - rapid growth without institutional maturity. Cryptopia was not an anomaly; it was a predictable outcome.
  • Image placeholder

    Shubham Singh

    January 4, 2026 AT 05:01
    You people act as if this was a surprise. Anyone with a functioning brain knew that a platform with no KYC, no cold storage, and a CEO who posted memes instead of updates was a walking disaster. The hack was just the funeral.
  • Image placeholder

    Charles Freitas

    January 5, 2026 AT 17:31
    Oh, so now we're blaming the 'hack'? Please. The real hack was the users' decision to trust a platform that didn’t even have a decent FAQ. If you didn’t know better by 2018, you didn’t deserve your coins.
  • Image placeholder

    Sarah Glaser

    January 7, 2026 AT 00:29
    There’s a quiet beauty in how crypto teaches us humility. Cryptopia didn’t fail because of bad luck - it failed because it refused to grow up. We all want to believe in the underdog. But sometimes, the underdog is just unprepared.
  • Image placeholder

    roxanne nott

    January 8, 2026 AT 06:42
    The hack was real. The incompetence was real. The lies after were real. But the worst part? The coins they listed were 80% rug pulls. You didn’t lose money to hackers. You lost it to scams they enabled.
  • Image placeholder

    Rachel McDonald

    January 8, 2026 AT 14:26
    I still get angry thinking about this. I had $12k in DOTCOIN. Gone. I cried. I screamed. I deleted my Reddit account. I’m still not over it. And they never even apologized.
  • Image placeholder

    Vijay n

    January 9, 2026 AT 18:22
    The NZDT collapse was not an accident it was a signal the bank saw the rot and cut it off before it spread. The real crime was not the hack but the silence. They knew they were doomed and let 900000 people keep depositing
  • Image placeholder

    Alison Fenske

    January 11, 2026 AT 02:11
    I used to check Cryptopia every morning like it was my favorite news site. I didn’t know I was checking a sinking ship. I miss the community, though. Everyone was so excited. We didn’t know how fragile it all was.
  • Image placeholder

    Grace Simmons

    January 12, 2026 AT 07:07
    This is why American investors need to stop chasing foreign platforms with weak oversight. If this had been a U.S.-based exchange, the SEC would’ve shut it down in 2017. We need stronger rules.
  • Image placeholder

    Collin Crawford

    January 13, 2026 AT 09:03
    Let me correct your narrative. Cryptopia didn’t fail because of poor infrastructure. It failed because it was a front for a money laundering operation disguised as a crypto exchange. The hack was staged. The liquidators are in on it.
  • Image placeholder

    Jayakanth Kesan

    January 15, 2026 AT 08:32
    I still have some old screenshots from Cryptopia. It was like a jungle - wild, beautiful, dangerous. But you learned to navigate it. I don’t miss the platform, but I miss how raw crypto felt back then.

Write a comment

  • Dec, 25 2025

Categories

Archives