Cryptopia Enters Liquidation, Shuts Trading Services

New Zealand-based digital asset exchange Cryptopia has entered into the liquidation process and suspended all trading activities.

According to the official press release published on May 15, the exchange has appointed two consultants - David Ruscoe and Russell Moore - from the consultancy and audit firm Grant Thornton New Zealand, the local wing of Grant Thornton International.

Cryptopia Limited appoints Grant Thornton as Liquidators - https://t.co/A35rq1Jls3

— Cryptopia Exchange (@Cryptopia_NZ) May 15, 2019

Beginning of the doom

The trouble for the crypto exchange started after its hack in mid-January. Though Cryptopia only mentioned that it had suffered “significant losses,” estimations by a third-party Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term company put the figures to at least $16 million.

After a lengthy investigation by the New Zealand authorities, the exchange resumed crypto trading services on its platform in March. However, it was facing some serious banking issues.

“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 exchange noted.

“The liquidators are focused on securing the assets for the benefit of all stakeholders. While this process and investigations take place, trading on the exchange is suspended.”

The troubled exchange also highlighted that the process is complex and could take “months rather than weeks” to complete.

Commenting on the process, Ruscoe said: “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.”

An exit strategy?

The announcement created a stir in the crypto community as many are now concerned for their stored funds on the exchange. The exchange is also facing backlash for little to no information disclosed about the attack and was compared to the recent transparent approach of Binance in dealing with the $40 million worth BTC theft.

It's been 4 months and @Cryptopia_NZ fails to answer to their users. This shows that the customers are definitely not the PRIORITY (Contrary to their Statement) . A really bad example for the crypto space.#crypto #altcoins #Bitcoin #exchanges pic.twitter.com/z2pbyevBIu

— Hegion (@HegionOfficial) May 13, 2019