- Cryptopia suffered a security breach for over 16M USD, in January, is in its final phase of liquidation.
- Liquidators of consultancy and audit firm Grant Thornton New Zealand to retrieve customer’s information from Arizona based data center.
Cryptopia, the New Zealand based crypto exchange, which had faced a terrible blow in the digital face after it suffered a security breach for over 16M USD, in January, is in its final phase of liquidation.
Liquidators of consultancy and audit firm Grant Thornton New Zealand has travelled to the united states to retrieve customer’s information and a minor quantity of crypto assets. Liquidators were able to gather this information from an Arizona based data centre. The liquidators mainly focused on securing the lost assets of its stakeholders.
The Christchurch- based business had invested heavily in its technology infrastructure after it had witnessed rapid growth last year. However, the hack hurt Cryptopia’s finances miserably. In the aftermath of an investigation, by the local officials, the exchange had to face serious financial problems and massive debts with people reclaiming their investments.
CryptoPia on Verge of Liquidation
In 2017, the cryptopia had 30,000 users all around the world, and earlier this year, it had more than 2.2M users and 37 working staff.
A high court decision on who owns the crypto-assets would help the liquidators to finish off their task.
Cryptopia said that with 900,000 active customers and 900 types of crypto-assets involved, determining who owns what is somewhat complicated and timely. It is because customers do not possess an individual digital wallet and hence determining personal ownership is next to impossible.
Though the exchange stored details of customer’s holdings, the crypto-assets pooled in coin wallets, which mixed up together.
These digital wallets rebuilt to avoid all sorts of after-effects of a hack attack. They could retrieve some money to fund the liquidation, thus leaving $7.2M on hand.
According to the latest estimates, it owed $3M to 26 unsecured creditors who were $4.2M in May.
Appropriate Government agencies which include NZ Police and High Tech Crimes Unit have jointly started their investigation after millions worth cryptocurrency disappeared from the online exchange.
They said a significant amount of virtual currency was transferred to a digital wallet even though the exact figure is not yet disclosed. The security breach left concerned investors in the dark, doubtful about what might have happened to their digital transactions.