Recently Hacked Cryptopia Exchange Files For Bankruptcy Protection In U.S.

Recently Hacked Cryptopia Exchange Files For Bankruptcy Protection In U.S.

2019-05-28 | Eddy Morgan

Recently Hacked Cryptopia Exchange Files For Bankruptcy Protection In U.S.

Recently 'hacked' renowned cryptocurrency exchange Cryptopia, that went into 'liquidation' earlier this month, has now filed for bankruptcy protection within the United States.

"Cryptopia’s" appointed liquidator, professional services firm ‘Grant Thornton NZ' [NewZealand], recently 'declared' that it has taken the step to preserve Cryptopia data secured and hosted on servers with an Arizona-based firm.

The bankruptcy court within the Southern District of  New York issued an 'order' to Cryptopia recently, permitting an emergency motion for provisional relief  until 7th June.

Adding further, Grant Thornton said:

“The interim order preserves the Cryptopia data, that embodies a SQL database consisting of all account holders’ individual holdings of cryptocurrencies as well as the account holder contact details. Without this data, reconciling individual holdings with the currencies managed by the exchange would be impossible.”

The process of recovering the information and finding a way to make distributions to account holders can take “some months atleast,” the liquidator aforesaid.

As per a 'report' published by Bloomberg, the Arizona firm is terminating services with Cryptopia and is seeking $2 Mln’s in compensation. If that compensation isn't forthcoming, the report suggests, the exchange’s liquidators concern that the vital user’s information might be lost irretrievably.

Cryptopia was hit by a major hack earlier in the mid of January this year leading to “significant losses.” Later, it 'resumed' it's trading services amid banking problems, but eventually went into liquidation and decided to suspend its operations from earlier this month.

A blockchain data analytics firm 'calculated' that after the hack around $16 Mln’s in Ethereum [ETH] and other ERC-20 tokens might have been 'lost'.

Grant Thornton was expected to file an initial report on the case last week on the New Zealand Companies Office web-site. However, the New Zealand Court granted a 10 day operational extension and therefore the report is now due on 4th June, Cryptopia 'added' last week.

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