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pucksterpete

Becareful Coinpayments.net

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Dear pucksterpete,

It is with deep regret we must inform you of an error we discovered in our Ripple service on June 5th, 2017 that allowed a few users to withdraw excessive XRP from hot wallet XRP accounts. Our records show that you are one of the users affected by this unfortunate activity. The issue was hard to detect because of the rarity of circumstances where it could happen. We have done a full review of our systems and added additional checks and protections to make sure similar issues don't occur in the future.

This isolated incident is the first of its kind on our platform and affected only ripple wallets which were not taking advantage of our long-term coin storage solution, the Vault. The people who exploited the glitch were not hackers, but other long term users of our service who made errors or chose not to report the discovered issue and ended up withdrawing other client’s XRP. Their detailed personal information has been collected and they all have been contacted to return the funds immediately. We are in communication with some already and reclamation process has begun with the help of our lawyers. Early response indicates that honesty appears to be prevailing. Some of the funds have already been returned and through a series of escalating steps we will be making every effort to ensure the XRP is returned to its rightful owners. We will be working diligently with local and international authorities for the safe return all balances and will proceed with criminal prosecution of those who do not return the funds willingly.

Your patience is greatly appreciated as we work through this matter. Note that your balance has been updated to reflect your new balance. Our support staff will not be able to give any information regarding the situation or adjust your Ripple balance.

We would like to remind everyone that any coin stored for an extended period should always be Vaulted. This service is free and offers the highest level of protection for any funds kept online. Additionally, we will dedicate 1/4 of our revenue flowing directly to effected users until we restore all of the missing value in their accounts. All coins recovered will be evenly distributed among all accounts effected as those come in.

Sincerely,
Alex Alexandrov
Chief Executive Officer
CoinPayments Inc.

 

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something you really don't like to see on a nice summers morning.... this is very hurtful to the ecosystem. Hope they get sued and police chase them. Any Canadian residents here want to raise a class action case on them ? I am sure all of the community can donate something to bring them to justice. 

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Some of the people whose money has been stolen . 

 

Please retweet and **Note** folks i think they still have the money and just playing with users to see if they can get away with .. if many of us tweet and scare them, might be they will get on track ... tweet those tweets and make sure u have @CoinPaymentsNET in every tweet and speak of suing them etc

also this will; provide support for all in Canada to come together and launch a class action case is required. lets do our part for the ecosystem. this has to be fought ! 

At the least thye have to give much much more details of what the glitch was, what happened and how to start with

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This is what you get when you want to stay anonymous and not like to reveal identity to you exchange or gateway.
My advice: Use trusted partners like for instance Gatehub with 2FA security. And try to understand WHY they ask for your identity.... Nothing wrong with that question ...

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Hello all,

We are working hard to get everyone's funds back. We have all the information on these people and are aggressively working with local authorities, legal council and international investigators. This was not a "hack" and CoinPayments did not steal anyone's money. This was an isolated incident occurring for the first time in the 4 year history of operation and was specific to XRP technology integration.

This is our worst fear and we are working around the clock and world to bring the funds back to the rightful owners. Please be patient as this process will take time. However, some of the users who exploited this glitch have complied with initial request to return the funds. XRP will be returned based on a percentage of the users account holdings as they are processed.

I believe the transparency of the company and the way this matter is being dealt with should be commended.

R8102V1D2D - Please feel free to contact me privately regarding your Class Action suit. We are fully cooperating with authorities and the legal procedures in both Canada and throughout the world.

 

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Dear valued CoinPayment's Clients,

As a quick update, we are getting some positive results from our proceedings with the perpetrators and the assistance of international law enforcement.

We are handling this matter with the highest levels of transparency and integrity. Please continue to believe we are trustworthy service and that the funds will be returned to the rightful owners.

We hope that in time you will find that our track record has been impeccable, our customer service is of the highest caliber, and we truly care about our community and clients. This is the first and only issue to affect our service since 2013.

When this is resolved and once you have received your funds in full, please take the time to help us rebuild our reputation by posting about your experience.

Sincerely,
The CoinPayments Team.

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On 2017-6-9 at 11:07 PM, Methodman0 said:

Hello all,

We are working hard to get everyone's funds back. We have all the information on these people and are aggressively working with local authorities, legal council and international investigators. This was not a "hack" and CoinPayments did not steal anyone's money. This was an isolated incident occurring for the first time in the 4 year history of operation and was specific to XRP technology integration.

This is our worst fear and we are working around the clock and world to bring the funds back to the rightful owners. Please be patient as this process will take time. However, some of the users who exploited this glitch have complied with initial request to return the funds. XRP will be returned based on a percentage of the users account holdings as they are processed.

I believe the transparency of the company and the way this matter is being dealt with should be commended.

R8102V1D2D - Please feel free to contact me privately regarding your Class Action suit. We are fully cooperating with authorities and the legal procedures in both Canada and throughout the world.

 

I was robbed off my ripples too, I bought for 1.5 bitcoin off ripples
That was my first cryptocurrencie action,

On 2017-6-9 at 11:07 PM, Methodman0 said:

Hello all,

We are working hard to get everyone's funds back. We have all the information on these people and are aggressively working with local authorities, legal council and international investigators. This was not a "hack" and CoinPayments did not steal anyone's money. This was an isolated incident occurring for the first time in the 4 year history of operation and was specific to XRP technology integration.

This is our worst fear and we are working around the clock and world to bring the funds back to the rightful owners. Please be patient as this process will take time. However, some of the users who exploited this glitch have complied with initial request to return the funds. XRP will be returned based on a percentage of the users account holdings as they are processed.

I believe the transparency of the company and the way this matter is being dealt with should be commended.

R8102V1D2D - Please feel free to contact me privately regarding your Class Action suit. We are fully cooperating with authorities and the legal procedures in both Canada and throughout the world.

 


When do you start paying back as you promise?

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I was robbed off my ripples too, I bought for 1.5 bitcoin off ripples
That was my first cryptocurrencie action,
When do you start paying back as you promise?
 

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Update

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To all our valued customers,

As many of you know, we are standing at the edge of a new society one where currency is digital and massively global. It is CoinPayments mission to keep ahead of the changes and allow our clients to have the best advantages at every turn. With a new world and a new system there are many new opportunities and risks that are undertaken. We are writing you today regarding our continuing investigation into the theft of our user's Ripple coins from the CoinPayments system. As most of you are aware, we discovered a technical issue with the Ripple hot wallets on June 5th, 2017. This security flaw was immediately rectified upon discovery, however the vulnerability allowed a handful of users to overdraw XRP from other user’s accounts.

The total exposure of this theft was over 21 million XRP coins spread across our user base. Through the diligent work of our core developers we have managed to track most of the stolen funds between a few major suspects. These identities will remain private as law enforcement agencies are still completing the investigation.

Firstly, we want to assure you that we take this matter very seriously and we value our user community and our reputation. CoinPayments is committed to returning all the funds that were stolen to every user affected by this crime.

We have identified every person who took advantage of this vulnerability and have reached out to them via our securities lawyers in the hope this was done in error and not in a malicious way.

Many users have come forward and returned the coins they mistakenly withdrew, however the reclamation of the majority of missing Ripple coins from the major suspects is taking much longer than anticipated as this investigation continues.  With the cooperation of local and international authorities we are pursuing this with the full extent of the law.

To show our commitment to our users we are dedicating our entire corporate liquidity reserves to procure XRP coins directly from the Ripple Inc, OTC (over the counter) purchase desk. The core members of our team will also be using our personal funds to assist with the speed of this recovery.

Ripple Inc upper management was immediately contacted in an effort to restore user funds as quickly as possible by purchasing them directly off the market. A purchase of this size on the open market through exchanges would be inefficient and manipulative to the XRP price.  Ripple Inc has graciously offered us locked in current rates for XRP coins in order to facilitate our purchase. This process requires very thorough Know Your Customer and Anti Money Laundering protocols which CoinPayments has been facilitating over this week and finally completed today.

We were hoping to begin reimbursing our users for their losses beginning today, Friday, June 16th, 2017, however due to the large amount of funds required and the complexity of this transaction it will take us through the weekend to complete the Ripple purchase. User accounts will reflect the distribution of the funds in XRP coins as soon as our wire is confirmed early next week. We will continue to update the community as the situation progresses.

The stress and pressure you are feeling is not unheard or taken lightly. We at the CoinPayments community carry the burden of stress in our partnership with you ten-fold. We understand many have used their savings and have mentioned lawsuits. Our desire is that in the months and years you have partnered with us, that we would work through this together and conquer the challenges ahead. We are here to protect the investments and recoup any losses that have occurred. We understand the urgency and frustrations of all of those involved and appreciate all your patience and support. We hope to build a stronger and tighter community through these challenging times.

Rest assured, the CoinPayments team is working day and night WITH you to restore what was lost. Please stay focused on the task at hand and let us recover the money together. We will continue to operate with the transparency and integrity that this community deserves.

We have taken initiative to create a Public Relations department in order to deal with correspondence to the situation at hand. Please forward all inquiries to pr@coinpayments.net, Thank you.

Sincerely,
Alex Alexandrov
CEO of Coinpayments Inc.

 

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Before anyone takes @Methodman0 posts as fact, has there been any sort of verification done to confirm that he/she/they are the Coinpayments Team? 

I don't know about you guys, but 'Methodman0' seems a bit too farfetched of a username that claims to represent the Coinpayments team.  

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On 6/9/2017 at 3:43 AM, pucksterpete said:

The people who exploited the glitch were not hackers, but other long term users of our service who made errors or chose not to report the discovered issue and ended up withdrawing other client’s XRP.

They're not "hackers".

They're simply people who exploited a technical glitch in order to gain control of a system!

:pleasantry:

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On 6/13/2017 at 7:49 PM, Methodman0 said:

We hope that in time you will find that our track record has been impeccable

Our record is impeccable except for that one time everyone lost their money.

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