Cryptopia Responds to User Queries on Exchange’s Status, Fund Returns May Be Months from Now
Cryptopia released a press announcement on May 17, 2019, seeking to provide answers to some of the questions being raised by its users. Many of the questions that have so far been put forward by clients are in relation to its liquidation status. Before this presser, the company had indicated that customers would not be allowed to make any withdrawals.
The embargo on funds withdrawal was expect to last for the duration on the ongoing investigations. Cryptopia had indicated that at best, it would take a few months for the whole process to come to an end. It is conducting investigations to help it establish how much it owes, as well as establish how much money is available for refunds to its clients.
In its press release, the company stated that they were not in a position to comment on whether individual clients would get access to all their digital assets. At the moment, the platform has grounded all its operations, including deposits and withdrawals.
It went on to state that the company was in the process of confirming how much is owed and how much it would be able to refund to clients. According to a spokesperson for the company, the process involved is quite complex, and may at some point require some input from the courts in New Zealand.
Cryptopia has been adamant that it will not be able to make any refunds until it has completed its investigations. It is the reason why it started by disabling its trading process to ensure that the clients’ digital assets were properly secured.
The company has further stated that clients cannot take screenshots of their account balances until it has completed the process. Clients should also take note of the fact that the company did not specify whether it would be providing refunds in the form of crypto or fiat currency.
All the platform stated was that it was not in a position to make any confirmations at the moment. Many Twitter users were not happy with this announcement, with some asking why it took the company too long to commence investigations. Others went on to ask why the firm continued to allow deposits when things were clearly wrong somewhere.
Some users believe that the company was liable for what was happening as it made its investors to lose money on purpose. Many have been calling for the team behind the company to face jail time for their actions.
The Hack on Cryptopia
Cryptopia was the first cryptocurrency exchange to get hacked this year. According to Whale Pand, a famous BTC proponent, the exchange had started becoming irrelevant by the time the hack took place.
The BTC proponent went on to note that it was rather interesting to note that the hack occurred when the market was experiencing a bear run. This was at a time when many small crypto exchanges were struggling to remain afloat. Whale Pand stated that it was possible that this hack was, in fact, an inside job.