Cryptopia Crypto Exchange Might Not Be Able To Refund Its Customers

Cryptopia crypto exchange based in New Zealand warned its users that it might not be able to refund all of their funds back. The coming altcoin news also reports that the exchange might not be able to return the funds at all.

In a published update earlier today, the crypto exchange announced going into liquidation and thus warned its users of the possible difficulties with the refunds. There is an investigation expected to determine the value of the lost funds which need to be given back to the customers. This needs to be done before they are able to assess whether they are able to return the money back:

‘’Until the investigation is complete, we cannot return any crypto-assets to customers, or confirm whether individual customers will get all of their crypto-assets returned.’’

The Cryptopia crypto exchange conducted their own investigation process which they claimed was complex and are expecting ‘’ direction from the New Zealand Courts.’’ Also, the investigation will likely take months so the exchange has already frozen their deposits and withdrawals on its platform. Some of the users have posted on Twitter issuing warnings on the entire situation and coming to terms that they might never see their money back.

This misappropriation of the funds should be punished and handled according to the users of the exchange. Some are even proposing jail time. Cryptopia admitted that the security breach five months ago is the source of all problems. Cryptocurrencies worth about $15 million were lost to the hack attack and the exchange even disclosed that the ‘’hack earlier in the year contributed to the issues which led to the liquidation.’’

In the best cryptocurrency news sites, you could also read that the Crypto exchange froze all of the crypto assets that were deposited on the platform and will affect even those which were not affected by the January hack. Users will be unable to check their balances until the investigation is completed. The platform rose to popularity due to its extensive portfolio. There were about 457 altcoins listed on the platform before the hack. The users now have to find some other platform to resume trading and forget about their lost funds.