Cryptopia Account Holders to Recover their Funds at the End of the Year

News / 18.09.2020

Grant Thornton, the liquidator of the now-defunct cryptocurrency exchange, Cryptopia, announced today that it expects to open a claims registration process by the end of the year. In May 2019, Cryptopia lost NZD 30 million worth $17.85 million at the time, after a hack that caused its liquidation.

Cryptopia account owners filed a lawsuit, which they won, further earning great rewards from it. They have priority over Cryptopia’s creditors when it comes to getting back their lost crypto. Currently, they are a step closer to recovering any remaining money from Cryptopia.

In an update for account holders, the company wrote that the expectation is that the claim process will open by the end of the year followed by the anti-laundering process. When the two phases are complete, the repatriation process will follow.

Account Holders to Claim Lost Crypto Through Set Procedure

The firm prepared a procedure to follow in claiming assets by previous exchange clients. They will have to verify their accounts and other data on a specialized portal. Grant Thornton says that unless this process is complete, he will not be able to proceed with disbursements.

The firm added that they could not reopen the exchange to return the lost coins. Since the exchange’s portal was hacked by an unknown source, they cannot reopen it. However, the case is still under investigation by the New Zealand Police.

Grant Thornton, before the reconciliation process, noted that the hack forced the liquidator to re-secured all coins in an environment not prone to hacks. For any of the account holders to get back their assets, they will have to undertake a know-your-customer (KYC) procedure because it is a legal requirement in New Zealand.

Users who were unaffected by the hack will not be able to withdraw them as they wish. Customer databases and crypto-assets held in the exchange’s wallets had never undergone a detailed reconciliation process. The firm, hence, cannot confirm that the account holder’s coin balances will match the actual holdings for each coin.

The liquidator assured account holders that the process is getting funded with the company’s assets currently. The court will give further directions required for the allocation of costs of returning account holder assets.

Cryptopia Yet to Clear Hack Uncertainties

Adam Clark, the Cryptopia founder, previously stated that he suspects that the hack was as a result of an inside job and it may not have been about the money. He added that the hacker somehow knew where everything was and that they had access to the keys and deleted the logs on their way out. They did not even steal the untraceable currency, meaning that they only wanted to ruin the company.

Until now, the hackers are still unknown and how they pulled it off also remains a mystery. For account holders, it is a bit of relief as there will be some repatriation.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.