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 analytics 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.
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“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