NZ Exchange Calls in Liquidators

You may have heard of the New Zealand exchange Cryptopia over the past few months which was hacked earlier in the year. Well now, under a new law in the country, a liquidator will take control of all the firm’s unsecured assets, which are then sold to repay its creditors. Liquidation offers the company protection from unsecured creditors as they aren’t able to take legal action against a company in liquidation or deal with its property unless they are given permission from the Court of the Liquidator.

On its homepage, Cryptopia says:

“David Ruscoe and Russell Moore from Grant Thornton New Zealand were yesterday appointed liquidators of Cryptopia. Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was, in the best interests of customers, staff and other stakeholders.

The liquidators are focused on securing the assets for the benefit of all stakeholders. While this process and investigations take place, trading on the exchange is suspended.

Given the complexities involved we expect the investigation to take months rather than weeks.”

On top of this, liquidators are also working with independent experts and the relevant authorities in regards to the firm’s requirements. Grant Thronton is set to get in contact with all customers and suppliers about its appointment in the next few days.

David Ruscoe has said:

“We realise 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.”

Cryptopia shut down

Back in January, Cryptopia came under attack from hackers which is just proof that there’s always a big risk with crypto.

Following a day of unscheduled maintenance outages and work, Cryptopia posted an official statement through their Twitter to explain what had gone on

“Hi Cryptopians,

We apologise for the delay in keeping you updated and appreciate your patience. Yesterday, 14th January 2019, the Cryptopia Exchange suffered a security breach which resulted in significant losses. Once identified by staff, the exchange was put into maintenance while we assessed damages.”

They go on to say:

“Staff then notified and involved the appropriate Government Agencies including NZ Police and High Tech Crimes Unit who are jointly and actively investigating the matter as a major crime and they are assisting us with advice.”