The New Zealand based crypto exchange, Cryptopia was hacked in January. Even though it wasn’t expected, week later, the management of the exchange announced that it was liquidating due to inability to run the exchange at a profit as a result of the hack. Grant Thornton, the appointed liquidator recently released an update on the progress
it has made towards returning Cryptopia customers’ funds to them.
This is cheering news for many investors whose funds were stuck with the exchange since they have anxiously waited for months to get their funds back. The wait is not yet over though. The liquidator merely announced progress it has made and the hurdles that still needed to be surmounted in the quest to identify all the customers and the assets that belong to them.
According to Grant Thornton, it has been a daunting task considering that there are more than 900,000 customers in the database of the exchange which was accessed by Cryptopia at the datacenter located in the United States. Reconciling 400 digital assets belonging to these customers has been an uphill task, but the liquidator announced that it has made progress.
However, the customers were informed that there are still legal issues which would be determined by the New Zaeland courts since a hacked exchange that was closed would not just simply reopen and start refunding the investors without due legal process. The release stated that the company’s legal team is working on taking cognizance of the legal status of digital assets in New Zaeland.
The update added that some of the legal implications for the Cryptopia investors would involve settling concerns about identity of the holders. This would involve KYC and AML regulations which would entail fresh KYC process for all the customers irrespective of whether they had undergone the process with the exchange prior to the hack.