Cryptopia's First Liquidation Report: No Completion Date Available Yet for Nearly $3 Million Owed

Cryptopia has had a bad year, to say the least. However, as they uncover exactly what they need to provide to the creditors, it looks like their situation could be more dire than originally expected. Read on to learn about the first liquidator report, and what it means for the retribution to their former customers.

  • Cryptopia is still undergoing liquidation proceedings but has released the first report from Grant Thornton.
  • Presently, the actual amount that will be owed to creditors is officially unknown.

The Cryptopia hack of January this year has ultimately led Cryptopia to file for bankruptcy, a decision made by the stakeholders. Proceedings have already begun, and the liquidators of the exchange have released their first of many reports to the public to discuss the current financial situation of Cryptopia. This report states that the creditors are presently owed $2.738 million, according to Grant Thornton, the liquidation team.

At this point, the liquidators are far under reaching that amount, having only secured $912,000. These liquidators are expecting a deficit of $1.63 million for secured creditors, which include Dell NZ and Coca Cola Amatil (NZ).

At the firm, staff members are presently owed $207,000 for the salaries and holiday pay that they did not received. They are also owed $177,000 for unsecured debt, though Grant Thornton believes that the latter amount will end up rising.

For anyone that needs to refresh their memory, Cryptopia was the victim of a massive hack that came with “significant losses.” After the hack, a blockchain analytics firm evaluated the losses, discovering approximately $16 million in ether and ERC-20 tokens. The company attempted to restart their trading services in March, despite continued banking problems, but this path led them straight to liquidation and stopped trading operations again.

Even with the relaunch of trading services, the company did not have the volumes that they needed for their debts.

At that point, the liquidators report said it became necessary to appoint a firm to handle the ongoing proceedings. Grant Thornton filed bankruptcy protection this week so that the data was stored on servers with a firm in Arizona as the liquidators determine which creditors get which amount.

At this point, the liquidators have not determined how much is actually owed to the customers. In a statement, Grant Thornton explained:

“We are currently gaining access to the database to undertake a reconciliation of the holdings against the customer balances. Until the user balance database is reconciled with the crypto-asset wallets operated by the company, we cannot confirm the value of Customer holdings.”

When the company was liquidated, there was $691,229 accounted for on the exchange in cash, accompanied by a loan of approximately $150,000.

The fixed assets were valued at over $1.3 million, though it is likely that only $242,000 will actually be recoverable. When the company filed for liquidation, the tax authority in New Zealand was in the middle of an audit, so the taxes that the exchange is responsible for is unknown as well.

The efforts to recover the lost cryptocurrency value is being supported by the local police, as well as former staff of Cryptopia. The report added:

“This involves gaining access to the company’s crypto-assets wallets and transferring them to secure cold storage where available.”

The company added that they “are aware of and understand” why the customers from Cryptopia are becoming agitated. However, considering that the case is based in New Zealand, which has no legal precedent regarding crypto assets right now, regaining these funds will need “significant direction” from the local courts.

The full report on the current state of the liquidation process can be viewed at https://t.co/h2fZvVBL1A.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,472FansLike
2,795FollowersFollow
4,195FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

NEM-Based Blockchain Project Symbol Launches Wine Supply-Chain Management System

Symbol, an enterprise-focused blockchain project developed by NEM, is looking to tap into the Wine supply-chain business and help the industry save millions caused...

Kraken's Crypto Facilities Becomes UK's First FCA Approved Futures Exchange

Crypto Facilities which is also known as Kraken Futures has announced that it has received approval to start derivatives trading services mostly to institutional...

Binance to Supports Ontology Network 2.0 Upgrade Tomorrow; Swap NEP5 ONT Tokens Today

Binance is supporting the upcoming Ontology 2.0 network upgrade planned for Tuesday of this week. The top crypto exchange stopped the deposits and...

Crypto Market Bounces Back by 44.5% in Q2 As BTC Gains 78% Since Black Thursday: CoinGecko

The market cap of cryptocurrencies has grown by 44.5% within Q2, according to the first quarterly report by CoinGecko. In addition to this, Bitcoin's price...

DApp Q2 Market Report Shows Massive DeFi Impact in The Decentralized App Ecosystem

The DeFi realm has registered tremendous growth in the past quarter (Q2) with some products posting some impressive figures. $4.9 Billion was channeled through...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today