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World News

Cryptopia Begins Liquidation as Customers fear the loss of funds

Cryptopia, a New Zealand-based cryptocurrency exchange, has announced on Twitter it will go into liquidation and liquidators already set.

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Cryptopia, a New Zealand-based cryptocurrency exchange, has announced on Twitter it will go into liquidation and liquidators already set.

Cryptopia, a New Zealand-based cryptocurrency exchange, has announced on Twitter it will go into liquidation and liquidators already set. The liquidators will the tasked with securing the exchange’s assets for the best price and refund creditors.

The company had only recently been a victim of two hacks, with many fearing that the event had happened again due to the lack of activity from the site.

However, it is thought that the liquidation is a result of the hacks rather than a repeat attack. Cryptopia was a victim of a double attack in January of this year which resulted in a massive loss of funds.

According to reports, in the first attack, the majority of the stolen funds were from its Ethereum wallets which cost the exchange a whopping $16 million in ETH and ERC20 tokens.

In the second attack, $180,000 worth of Ethereum was lost. Cryptopia promptly released a statement on the loss incurred due to the hack, with the losses projected to be at the most 9.4 percent of its total holdings.

The company reopened its services in March 2019, yet it appears they have been struggling to stay afloat and this has prompted the liquidators of Grant Thornton, David Ruscoe and Russell Moore, to start their work.

Ruscoe released a statement on Cryptopia issue saying:

“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.”

The liquidation process has left many out of the loop and worried about their funds. One Twitter user, @Donarito, commented that they would “fight” for their funds as many are left worried about the resolution of this issue.

However, as a Twitter user, Martin the Wanderer, amusingly pointed out, “We all survived the bear market, we will survive craptopia as well!”

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