Court Gives 10 More Days to Hacked Crypto Exchange Cryptopia to Reveal First Liquidation Report
The non-operational crypto-exchange based in New Zealand Cryptopia recently revealed a new development concerning its liquidation report.
The crypto-exchange stated that the New Zealand court granted the platform ten more working days to show the story. The court slated 4th July 2019 for the presentation. Cryptopia said on its official Twitter page:
“The New Zealand Court has granted a ten working day extension on the initial Cryptopia Ltd Liquidators report. It is now due on 4 June and will be available on the New Zealand Companies website when it is submitted.”
After Cryptopia’s statements on Twitter, many of its customers had their say. Sean Crypto Philips, one of its users, stated this on Twitter:
“I hope that the liquidators understand that the coins are funds held in trust, not general assets of Cryptopia, so should be returned in full and without conversion. Also, I will be interested in any news of recovery from amounts sent to Huobi, although my balance was intact.”
A significant setback hit Cryptopia when its platform got hacked in mid-January, making the exchange for losing substantial amounts. According to a blockchain analytics firm, the exchange lost more than $16 million in ether and ERC-20 tokens.
Even though it resumed operations in March, Cryptopia still encountered banking issues. Right now, the exchange decided to undergo liquidation and suspend trading operations.
At the moment, the defunct crypto-exchange still undergoes serious maintenance, with its website only displaying the press release of the liquidation process. On the press release, the liquidation procedure will be taking care of by David Ruscoe and Russell Moore, representatives of Grant Thornton. Notably:
“these liquidators are focusing on securing the assets for the benefit of all stakeholders.”
Grant Thornton initially aimed to have the investigations carried out within months, but the first report is set to be presented in the coming month. David Ruscoe stated:
“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.”
As stated before, that the exchange lost more than $16 million in ether and ERC-20 tokens during the attack and trailed $3.2 million of the funds in liquidations to crypto-exchanges such as Etherdelta, Binance, and Bitbox.
In other news, Cryptopia also made headlines when the hackers stole ETH tokens to different wallets and exchanges including Huobi, as revealed in an announcement by a top centralized crypto-exchange on its social media handle recently.
The top centralized crypto-exchange confirmed that the stolen funds were transferred to its system and detected it; at the same time freezing the funds instantly before the hackers move the funds again or cash them out.
Additionally, Binance was also a victim of a significant attack that resulted in the loss of 7,070 BTC from the exchange’s wallets earlier this month.