Cryptopia Update: Report Shows $4.2M Owned to Creditors
The Liquidators of now-defunct New Zealand based firm Cryptopia has released it’s reported over the state of affairs, in relation to the documents published on 31st of May.
Recently Cryptopia assigned Grant Thornton as Liquidator who subsequently released an estimation statement of the current financial state of the Firm, and surprisingly it reports that the exchange owes a total of about $4.22 million to all of its Creditors.
Seeing the report which claims of the 69 unsecured Creditors having a claim of about $2.430 million alone while a continued increase in the claims due to further raising issues, which continuously increases the claim amount over the firm.
The report also highlighted that the employee’s entitlements towards the data of Liquidation account are around $318.000.
David Ruscoe and Russell Moore are still in the process of securing and recovering the company’s crypto assets which were compromised during the Cryptopia’s mid-January Hack.
The report also noted that Liquidators have been granted with a court order via the New Zealand Court which authorized them to use a certain amount of crypto assets so as to recover and preserve the now recovered assets.
Thornton added to it that with the current stage of the continuing investigation they most probably cannot forecast a date on which the Liquidation work will be completed.
To this the One of the legal expert while showing concern over the current bad situations through with the Crypto Exchange firm Cryptopia is going and wrote,
“We are aware of and understand the frustration of Cryptopia’s customers. As there is no legal precedent on crypto assets in New Zealand and worldwide, the distribution of those assets and the overall conduct of the liquidation will require a significant direction from the New Zealand Courts.”
With the current situation of the firm after facing a major hack in the early of 2019 with the lost funds with an estimated loss of about $16 million and seeing the speed of Liquidators recovering the assets. Thornton warned the creditors that they may have to wait for months rather than weeks so an as to get there funds back.
