Liquidators Of The Cryptopia Exchange Release Official Report: $4.2M Debt

Liquidators of the Cryptopia exchange that is now defunct, have released their official and first report on the state of affairs of the company. The documents were published on May 31 and we find out more about the content in the altcoin news below.

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. The report also notes that there are about 70 unsecured creditor claims reaching approximately $2.439 million adding that they expect to receive further claims which will raise the amount as well.

The report also pointed out that the employee entitlements from the data of liquidation reach up to $318,000. In a press release after the report, Thronton stated that the liquidators of the cryptopia exchange David Ruscoe and Russel Moore are in the process currently of securing and recovering the company’s cryptocurrency assets that were compromised from the exchange’s hack that happened in January.

Further, the liquidators were granted a court order from the court in New Zealand which gave them the authorization to use some of the crypto assets to recover and to preserve other assets. As noted in the latest cryptocurrency news, Thronton added that at this stage of the investigation, they cannot predict a date when the liquidation will come to an end. He wrote:

 “We are aware of and understand the frustration of Cryptopia’s customers. As there is no legal precedent on crypto assets in New Zealand and worldwide, the distribution of those assets and the overall conduct of the liquidation will require a significant direction from the New Zealand Courts.”

Cryptopia was a victim to a massive crypto hack in 2019, just as the year started. There were about $16 million crypto assets and funds stolen. The liquidator Thronton warned the creditors that they would have to wait for months to get their funds back. Recently, one crypto analyst found that the hackers moved a huge chunk of the stolen assets to another crypto exchange which is a good sign regarding the refunding of the creditors.