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Cryptopia Faces Liquidation After Hack

By Rafał - 2019-05-16

The Churchgate, Newzealand based exchange, Cryptopia has finally caved in four months after the security breach that affected its operation.
This was revealed in a press release posted on the exchange’s site on May 15 which announced that David Ruscoe and Russell Moore, both of whom are from Grant Thorton have been appointed as liquidators.
This is tough times for the exchange’s investors especially with statement from the liquidators saying that the whole process would take months and not weeks to be concluded.
On its decision to liquidate, the Cryptopia management stated that although this is a difficult resolution, it was taken after several attempts to bring the platform back on its feet through scaling down, but the effort was unable to bring Cryptopia back to profit.
The Liquidators are working to secure the assets of the company and ensure that subsequent actions are in the interest of all concerned especially the investors.

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

— Cryptopia Exchange (@Cryptopia_NZ) May 15, 2019
The first sign that all was not well after the hack was that it took months before the exchange resumed even the skeletal operation with which it hoped to keep the exchange above board. Nevertheless, it is possible that it was encumbered by the work of investigators who worked onsite to ascertain the reason for the breach in the platform’s security.
Cryptopia which had more than a million users in January when the hack took place was made popular due to the support it had for many altcoins, thereby giving investors wider trading options.
The liquidators announced that they would work in conjunction with independent experts to make sure that the Cryptopia meet its obligations.
In January, the exchange announced that it lost the equivalence of $15 million after a hacker breached its security. In the recent announcement, the company stated that the hack has had severe impact on its operations.
Words went round that it took months before the management could secure the assets in the company’s custody. Even though the hack took place months ago, the inability of the platform to restart business quickly was the first sign that its impact would be long-lasting as shown with the liquidation move.