After being granted an extra ten days to release the first liquidators report by the New Zealand Court on 23 May 2019, Cryptopia, at last, released the report filed by Grant Thornton. The report also gave an insight into the background on the events that occurred over the past few months. Notably, the report also listed out the secured and unsecured creditors, with Coca Cola and Dell New Zealand Limited being listed under secured creditors, and 69 unsecured creditors with a claim of $2.439 million.

The Twitter announcement by the exchange stated,

Liquidators’ First Report on the State of Affairs of Cryptopia Limited (in Liquidation) is now available: https://t.co/h2fZvVBL1A #Cryptopia

— Cryptopia Exchange (@Cryptopia_NZ) May 31, 2019

The report stated that the exchange, which had over 2.2 million registered users around the globe, scaled its business towards the beginning of 2018 because of the massive surge in the price of Bitcoin and other cryptocurrencies. Due to this, the exchange had “entered into a number of long terms, high-cost contracts to provide the infrastructure” required for trading by its customers.

However, as the market slumped throughout 2018, the firm was also affected because of the significant drop in trade volume. This, in turn, resulted in the firm reducing “its expense in an attempt to minimize trading losses.” This was followed by the exchange falling victim to a security breach that resulted in a loss of over $16 million in cryptocurrencies, and the firm opening an investigation on the case alongside the New Zealand Police, which is still ongoing.

The report further stated,

“The company then decided to reopen the exchange for the trade of certain crypto-assets in March 2019 and continued to trade through the date of Liquidation. However, trade volumes were insufficient for the Company to meet its debts as they fell due and it was decided the appointment of liquidators was in the best interest […]”

More so, another court order dated 29 May 2019 has allowed the firm to convert the Bitcoins that were “held in the company wallet outside of known clients funds” to fiat in order to fund the liquidation process and protect customers’ cryptocurrency holdings.

Further, the report also revealed that the liquidators are yet to start the audit and the customer’s verification process. Additionally, the liquidators have also not gained access to the database that is required to re-fund the platform’s customers. The report stated,

“Until the user balance database is reconciled with the crypto-asset wallets operated by the company, we cannot confirm the value of Customer holding.”

Spencer ellis, a Twitter user said,

“TLDR; We haven’t done anything to give people their crypto back, but we are going to sell Cryptopias 344 BTC to cover the costs of the liquidation.”

Troy, another Twitter user stated,

“Well we can at least be thankful that management of funds has been taken out of @Cryptopia_NZ hands, who were clearly incompetent with managing funds + security”

The post Cryptopia releases first liquidators’ report; exchange does not confirm date of completion yet appeared first on AMBCrypto.

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