The Crypto Exchange Cryptopia Goes into Liquidation Following a Major Hack in January

Cryptopia

Cryptopia

The growing crypto industry is attracting an awful lot of hackers as they can easily take away huge amounts in no time without getting caught. Cryptopia, the crypto exchange hit by hackers on January 13, 2019, has finally gone into liquidation and halted all its trading operations.

The Christchurch-based crypto exchange, which lost a whopping $23 million to hackers, has appointed Russell Moore and David Ruscoe from a tax audit and advisory company Grant Thornton as liquidators. The news was disclosed on Wednesday by one of exchange’s assigned liquidators. Cryptopia confirmed the news on its website, as well as on Twitter. Before announcing liquidation, the exchange went down for a few hours with a notice saying ‘’Don’t Panic! We’re currently in maintenance. We apologize for any inconvenience and appreciate your patience.’’

Crypto-exchange

The Liquidators has said their primary focus is on recovering the lost assets to compensate all the stakeholders involved. All types of trading operations have been completely suspended while the investigation takes place. The exchange has been working closely with New Zealand’s relevant security departments to try to figure out who are the hackers and where the stolen assets have gone.

Back in January, the exchange went down for a couple of days before stating that it had suffered a big security breach which caused serious damages. However, the exchange resumed its trading services in March, but still had some banking issues. The assigned liquidator Grant Thornton said that the hack had a serious impact on Cryptopia’s trade, and despite the company’s efforts to return it to profitability and restore its operations, it was decided that liquidation was the only best option for all stakeholders.

Reacting to Cryptopia’s Twitter liquidation announcement, many users have shown frustration and outrage, with some also suggesting that creditors take serious legal actions against the exchange.

Ruscoe, one of the assigned liquidators said:

“We realize Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders.”

It’s expected that Grant Thornton will file an initial report on New Zealand Companies Office site next week.

Will Users Ever Be Able to User Their Cryptopia Funds Again?

We can’t say anything for sure at this moment, as the liquidator hasn’t said anything yet on this. There’re a number of questions still to be answered: Is this an Exit Scam? Are the digital assets that weren’t hacked still in the possession of Cryptopia? In the case of the former, it’ll be impossible for Cryptopia users to recover their funds. But if the funds are still in the exchange’s possession, the best choice for Cryptopia would be to enable users to withdraw their funds from the exchange. But in this case, there’re still big stakeholders and liquidators that need to be paid first.

Stay tuned with Visionary Finance for more information on this story.

By Johnny
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