The administrators of the exchange decided to suspend the activities and liquidate the firm

Since the beginning of this year, two important hacks took place and affected two cryptocurrency exchanges. One of them, Binance, seems to be recovering its potential after losing 7,000 bitcoins (the equivalent to almost USD 41 million), whilst the other cryptocurrency exchange house has not been lifted.

Cryptopia, a New Zealand-based cryptocurrency exchange, suffered a serious hack during last January. The theft forced Cryptopia to suspend its operations and left as a consequence the decision to liquidate that business, as reported by a message posted on its official Twitter account and a communication published on its official website. The crypto exchange which lost NZD$ 23 million ($15 million) in the security breach has appointed liquidators.

The attack that the Cryptopia platform suffered in early 2019 caused “severe injuries” which seem to have failed to heal until now. At the end of March, the exchange announced that it would resume operations. However, their clients and the crypto-community were not very receptive to the measure, due to the distrust that the attack generated in them.

Despite the efforts to reduce costs and recover the profitability of the business, the goal has not been achieved. In that sense, the decision made by the administrators of Cryptopia is the suspension of their activities and the liquidation of the firm. According to the statement, the measure taken by the exchange represents “the best for customers, staff and other interested parties”.

They Will Reimburse the Money

With the aim of not harming those who were its users, the Cryptopia administration went to the New Zealand Grant Thornton law firm to begin the liquidation process. The people in charge of this case are David Ruscoe and Russell Moore.

The news also generated concern among customers who still have funds in the platform. Due to this, Thornton explained that the procedure will consist in contacting all the clients and suppliers to attend them, to know their cases better and to give them an appointment in the next days.

“We know that Cryptopia customers will want this issue resolved as soon as possible. That is why we will conduct a thorough investigation, working with different parties, including management and shareholders to find the solution that is most convenient for customers and interested parties”, said Ruscoe.

As part of the procedure, the liquidators will have the collaboration of independent experts as well as the respective authorities to establish the obligations of the company and meet the necessary payments.

However, Ruscoe indicated that it will not be a simple process and that it could take a long time. “Given the complexities involved, we expect the research to take months instead of weeks”, he says.

Another decision taken by the company is not to comment anymore about the liquidation process, until an initial report of the case is published next week on the website of the New Zealand Business Office.

Different companies, such as the US firm Chainalysis, are working on programs that help detect vulnerabilities in the cryptocurrency exchange platforms. Meanwhile, users expect higher levels of security so that their investments are protected and avoid losses of time or money.

By María Rodríguez


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