Hacked & Now-Defunct Crypto Exchange Cryptopia’s Liquidators Recover $10.9 Million
- New Zealand-based crypto exchange's liquidators’ make progress
- $7.1 million can be potentially be refunded to users
- Liquidators Grant Thornton has a high court hearing in February 2020
Cryptopia’s assigned liquidator, accounting firm Grant Thornton released a report titled, “Liquidators’ Second Report on the State of Affairs of Cryptopia Limited (in Liquidation)” on Wednesday outlining the progress made by the firm in the past six months and detailing the breakdown of the retrieved assets.
The Liquidators' Second Report on the State of Affairs of Cryptopia Limited (In Liquidation) is now available: https://t.co/qtQ7dvcUtc
— Cryptopia Exchange (@Cryptopia_NZ) December 11, 2019
The firm has recovered $10.9 million from May to November including $5 million from the third party trust account, $4.4 million converted from the 344 Bitcoins in exchange's own wallet, and just over $200k by selling company's equipment, furniture, and other items.
However, $3.7 million is the total expenses that include distribution of salaries, legal expenses, liquidator fees, and preferential creditors. This leaves $7,164,835 in assets that can be refunded to users.
A Time-Consuming Process
Although the process for that is “well underway,” it is a time consuming one that involves identifying each cutosmers’ holdings. The liquidator report said,
“We are working to reconcile the accounts of over 900,000 active customers, many holding multiple crypto-assets, millions of transactions and potentially over 900 different crypto-assets.”
Finding which customers held how much of which assets are proving to be extremely difficult because of two reasons, customers didn’t have individual wallets and crypto assets were pooled in wallets.
Next Update in February 2020
The liquidator isn’t working to find the root cause of the case but to seek recoveries for stakeholders’ benefit. However, it continues to work with the New Zealand Police and international authorities to determine the source of the hack.
The next report is not due until May 2020 but the firm will provide another update to stakeholders after the High Court hearing in February 2020.
Cryptopia went into liquidation in May after the now-defunct exchange suffered financial losses and a plunge in trading volume due to a hack of $16 million in January. Grant Thornton soon after filed for bankruptcy protection in the US to preserve the data stored and hosted on servers with an Arizona-based firm.