At the start of 2019, Cryptopia suffered from a debilitating hack that caused it to lose over $15 million worth of funds in its accounts. Since then, the company has been in crisis mode as it tries to sell off its assets and pay off its creditors. Visionary Financial mentioned back in June how creditors were owed $2.7 million. Grant Thornton, which is overseeing the exchange recently made an update on what will happen in the next few months.
The last time that Grant Thornton made an update regarding Cryptopia was in August. Since then, the company has been in and out of court trying to get clarity on what will happen to the customer holdings of Cryptopia users. The company also requested and was granted oversight by two representatives from the Queen’s Counsel to help direct future activities.
Cryptopia Exchange Creditors
While the company tries to seek legal clarity on its activities, Cryptopia’s creditors are growing impatient. The Company understands this. In its update, the company said that since customers did not have individual wallets, it was not possible to determine ownership based on the keys contained in the wallets. According to the update, while Cryptopia held details of what customers owned, all assets were pooled together. Trades on the exchange took place in the internal ledger of the exchange with no confirmation being sent to the blockchain.
Cryptopia Exchange Details
Grant Thornton is currently going through the details of about 900,000 users of Cryptopia to understand who is owed what. The company noted that there were over 400 crypto assets and millions of transactions that it was currently examining.
They have come up with a process that they believe will help speed up the process. For instance, they have already secured all company data and rebuilt the full wallet environment. It believes this will help it confirm there are no traces of the hack that compromised the exchange. Currently, it is trying to identify users so that it can reimburse them. However, it was facing legal challenges, although it did not provide details about the challenges it was facing.
Most of Cryptopia’s assets such as office equipment and computers have already been sold and the proceeds added to the reimbursement fund. Meanwhile, Grant Thornton continues to work closely with the authorities and courts to ensure it operates within New Zealand’s laws when carrying out its activities. In the final stage, the company will require customers to go through a KYC process. The company said that this stage was unavoidable since it was a requirement under the laws of New Zealand.
However, they said that before it started, they would communicate with customers on how it would go down. They added that this would apply even to those that had gone through the KYC process and background checks when Cryptopia was operational. The next update is expected to take place in December 2019, which is in accordance with its role of heading the restitution process. Thus far, the company has done an amazing job and there have not been many complaints about how it’s handling the process.
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