Victor Ugochukwu · Dec 14, 2020 . 5min read
Creditors can file for claims from defunct Crypto Exchange Cryptopia
Audit firm Grant Thornton announced that creditors of defunct crypto exchange Cryptopia can now start claiming since the process is now live.
By Komal Joshi · Dec 11, 2020 . 5min read
New Zealand based defunct cryptocurrency exchange Cryptopia’s creditors can now start filing for claims with designated audit firm Grant Thornton. Professional services firm Grant Thornton is Cryptopia’s assigned liquidator. It declared that creditors could instantly commence the claiming process on the Cryptopia claims portal. Following the audit firm’s official announcement, emails have been forwarded to the concerned Cryptopia users to file for claim utilizing the Cryptopia claims portal, which is now live.
Purpose behind Cryptopia’s Liquidation
Rob Dawson and Adam Clark established Cryptopia in 2014. The entry of the exchange into the market was short-lived when the exchange in January 2019 underwent a security breach. Thus, leading to prominent losses amounting to about $16 million. The exchange proceeded to liquidate in May 2019. David Ruscoe and Russell Moore from Grant Thornton, New Zealand, work as liquidators for the company.
Thus, a lawsuit followed in which Cryptopia’s consumers sued the exchange to avail their locked-up funds. Per the report, Justice David Gendall of the High Court in Christchurch, New Zealand, in an important ruling, said that consumers should receive the digital assets they possessed in Cryptopia accounts. The ruling arose in acceptance that the exchange certainly has custody of the assets for its consumers. In May 2019, Grant Thornton published an evaluation statement of the financial status of the firm. Thus, stating that the hacked exchange owes a total of $4.2 million to its creditors.
Misfortunes such as that experienced by Cryptopia is not unusual in the cryptocurrency exchange ecosystem. There have been instances of asset lock-up due to the death of the owner of the Canadian-based cryptocurrency exchange QuadrigaCX, to the current hack of KuCoin, the exchanges in the space are most vulnerable in one form of danger to another. QuadrigaCX crypto exchange’s trustee Ernst & Young (EY), received $171M worth of claims from the customers. The Canadian crypto exchange’s problems commenced when its founder and chief suddenly passed away in late 2018, without giving the private key of the exchange’s funds to anyone else.
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