Reseller News

Hacked bitcoin exchange Cryptopia calls in liquidators

Hacked exchange goes under after January hack
Cryptopia calls in the liquidators.

Cryptopia calls in the liquidators.

Cryptopia, the Christchurch-based bitcoin exchange hacked in January, has called in the liquidators.

An announcement today says David Ruscoe and Russell Moore from Grant Thornton New Zealand were appointed liquidators of Cryptopia Limited yesterday.

The site had reportedly been down for some time ahead of the announcement and some users were "panicking" according to an overseas report.

"The highly publicised hack of Cryptopia’s exchange in January 2019 had a severe impact on the company’s trade," the announcement said.

"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."

Initial reports put the losses at up to $23 million, but the exact amount lost is unknown. Police reported in February they were making "excellent progress" in their investigations of the hack.

Trading has been "suspended" while this liquidation process and investigations take place, the announcement said. A notice of the appointment of liquidators has been posted to the Companies Office website.

“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,” said David Ruscoe.

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

The liquidators are also working with independent experts and the relevant authorities with regards to the company’s obligations, the announcement said, adding that Grant Thornton will be contacting all customers and suppliers in the next few days.

An initial report will be available on the New Zealand Companies Office website next week, the company said, and no further comment would be made until more information was available.