Yahoo-backed Crypto Exchange to Launch; Cryptopia Liquidator Files for U.S. Bankruptcy Protection

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Among the day’s major crypto news: a Yahoo Japan-backed cryptocurrency exchange announces a May 30 launch; Cryptopia’s liquidator obtains a court order; and a MyCrypto security researcher warns of a “highly suspect” vulnerability found in a paper wallet generator website.

The crypto markets held up strongly over the past 24 hours; barely consolidating on the back of the significant price rally from the day prior. At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $8,719.5 (-0.1%) and $269.6 (+0.6%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 4,211.8 (-0.4%).

Japan Taotao Cryptocurrency Exchange Set to Launch

Taotao, a Japan-based cryptocurrency exchange backed by Yahoo Japan subsidiary YJFX, revealed on Twitter that it will launch on May 30. Initially, Taotao will offer spot and margin trading in bitcoin (BTC) and ether (ETH). Customers will also be able to margin trade in litecoin (LTC), XRP (XRP), and bitcoin cash (BCH).

Originally, Taotao – formerly known as BitARG Exchange Tokyo – planned to go live in the middle of May. On May 16, however, they announced their decision to postpone the launch until the end of the month.

In March 2018, Yahoo Japan-owned YJFX, a foreign exchange transaction service operator, purchased a 40 percent equity stake in BitARG – as it was then called – for almost $20 million (USD).

Cryptopia Liquidators Files for U.S. Bankruptcy Protection

In a statement published on Monday, Grant Thornton New Zealand – the assigned liquidator of bankrupt New Zealand-based crypto exchange Cryptopia – announced they filed a petition with the Bankruptcy Court in the Southern District of New York (SDNY) on May 24; seeking recognition for liquidation in the U.S.

Additionally, Grant Thornton revealed the SDNY granted them an emergency motion for provisional relief until June 7. In the public statement, the liquidator emphasized the fact Cryptopia’s user data is stored and hosted on the servers of an Arizona-based business:

“The interim order preserves the Cryptopia data, which includes a SQL database containing all account holders’ individual holdings of cryptocurrencies and the account holder contact details. Without this information, reconciling individual holdings with the currencies held by Cryptopia will be impossible.”

Security Researcher’s Report Spotlights ‘Highly Suspect’ Paper Crypto Wallet Site

Harry Denley, a security researcher from MyCrypto – an open-source, client-side tool for interacting with blockchain technology – recently published an alarming blog post wherein he described a “highly suspect” vulnerability found on WalletGenerator.net, a website that generates paper wallets for various cryptocurrencies.

According to Denley, there exists “the very real possibility that [WalletGenerator.net] is giving the same keys to multiple users.” Signalling the seriousness of the problem, he recommended “users who generated public / private keypairs after August 17, 2018, to move their funds.”

The MyCrypto security researcher went on to state that “even if the [WalletGenerator.net] code at this very moment is not vulnerable,” he would not recommend using the paper wallet generator site moving forward.

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