- The hacked exchanges goes bankrupt.
- Users are concerned that they are not allowed to withdraw funds.
In the recent developments, a cryptocurrency exchange Cryptopia has initiated a liquidation process, according to the recent announcement.
This New Zealand trading platform for digital assets fell victim to a severe hack attack back in January 2019. At that time, the company incurred multi-million losses and had to suspend the operations. According to the estimations, the exchange might have lost about $16 million.
Despite continuous efforts to revive the business, the top-management was forced to file for bankruptcy and appoint liquidators.
“Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was in the best interests of customers, staff and other stakeholders,” the company explained the decision in the accompanying statement.
Cryptopia resumed operations at the end of March and even transferred the half of the listed coins to the wallets with new private keys. However, trading on the exchange has been suspended once again due to investigations.
Liquidators David Ruscoe and Russell Moore from Grant Thornton New Zealand will be securing the assets for the benefit of the company’s stakeholders. Apart from that, they will cooperate with independent experts and authorities to define the scope of the company’s obligations.
“We realize Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders,” David Ruscoe commented.
Meanwhile, the exchange users are anxious that the company won’t allow them to withdraw funds from their accounts.
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