Cryptopia Liquidators Recover $11 Million But The Process Is Still Difficult

The Cryptopia liquidators from the New Zealand crypto exchange successfully recovered about $11 million in the past six months but they claim that the process is still very difficult so let’s find out more in the upcoming crypto news.

In the reports by the Cryptopia liquidators, Grant Thornton confirmed that the receipts from May up to November reached about 10.9 million New Zealand dollars which are approximately $7.18 million. The expenses including the payments to a few preferential creditors came to 3.71 million New Zealand dollars or $2.46 million which later resulted in a net recovery of $4.74 million. As we can read in the report:

 “We continue to investigate the affairs of the Company and its directors in the period prior to our appointment to determine if there are any further avenues of recovery available to the Company.’’

Grant Thornton didn’t comment further on how much longer will the creditors need to wait for reimbursement saying that ‘’at this stage it is not practicable to estimate the completion date for the Liquidation.’’ Cryptopia shut down in January 2019 years after the hackers stole funds worth about $16 million. The prolonged process has seen the liquidators tease out the details of the user transactions with the reconciliation of funds ongoing. The report adds:

 “No detailed reconciliation process between the customer databases and the crypto-assets held in the wallets has ever been completed.’’

Grant Thornton is right now focusing on the accounts of more than 900,000 active users potentially involving more than 900 different cryptocurrencies. The reports show that the exchanges worldwide continue to battle hack attacks and they focus mostly on a much larger loss involving the ex-Canadian exchange QuadrigaCX. Earlier this month, a cryptocurrency worth $340,000 mysteriously left the books of the South Korean platform Upbit and some analysts claimed that it was an inside job. The users, however, will be compensated by the company’s funds.

As per the previous reports, Cryptopia co-founder and ex-former developer VCDragon revealed evidence that shows that the exchange hack was an inside job with an intention to destroy the exchange. Also, according to the documents, the assigned liquidator Grant Thronton, released the estimation statement for the financial state of the hacked crypto exchange, stating that Cryptopia owes a total of $4.2 million to the creditors.