Cryptopia Liquidators Release First Financial Report

Today, May 31, the liquidators of the defunct Cryptopia exchange have made available the first report on the company’s situation.

Grant Thornton, the company assigned to be the liquidator of Cryptopia, has published a document reporting the estimated financial status of the firm, revealing that the exchange owes a sum of $4.22 million to its creditors.

The report states that there are 69 creditor claims that are currently unsecured, which will cost the exchange $2.439 million. The liquidators have added that more claims are expected to come, which would increase the sum.

The employee entitlements at the data of liquidation account are set around $318,000.

The report was followed by a press release which explains that the liquidators put in charge of the exchange, David Ruscoe and Russell Moore, are still working to recover the assets lost in the hack the exchange experienced in January.

Ruscoe and Moore are authorized via a court order from the New Zealand courts to use certain crypto assets in the recovery process. Thornton has not given a specific date when the liquidation will end.

The legal firm said the following:

“We are aware of and understand the frustration of Cryptopia’s customers. As there is no legal precedent on crypto assets in New Zealand and worldwide, the distribution of those assets and the overall conduct of the liquidation will require significant direction from the New Zealand Courts.”

Cryptopia lost approx. $16 million in a hack which occurred at the beginning of 2019. The exchange suspended trading activities after the attack, but only after a brief period of operating it decided to enter liquidation. Thornton has said to creditors that the investigation might take months, rather than weeks before they recuperate any funds.

Crypto analysts recently discovered that hackers have relocated some of the stolen funds from  Cryptopia to a different crypto trading platform.

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