Altcoin News: Hacked Exchange Cryptopia Announced Its Own Liquidation

May 15, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

New Zealand Cryptocurrency Exchange Cryptopia stopped trading on its platform and announced the start of the liquidation process. In January, the crypto exchange was subjected to a hacker attack, the losses from which were measured in millions of US dollars.

Before the publication of the official announcement of the exchange was unavailable for several hours, and on its website displayed a message on the conduct of technical work.

Currently, Cryptopia’s homepage says that David Rusco and Russell Moore were appointed as liquidators.

“Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was, in the best interests of customers, staff and other stakeholders,” they explained in announcement.

Liquidators will be engaged in the collection of available assets to meet the requests of all participants in the process. They also collaborate with independent experts and authorities to determine the company’s obligations.

While the liquidation process and the investigation are ongoing, trading on the platform has been stopped.

“Given the attendant difficulties, we expect that the investigation is more likely to take several months than weeks,” writes Cryptopia.

In what form the assets remaining on the exchange will be returned to users is unknown.

During the conversation with the local portal Stuff, Rusco said:

“We realise Cryptopia’s customers will want to have this matter resolved as soon as possible.” “We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders,” he said.

Back in mid-April, Cryptopia took steps to restore full functionality of its platform. Then the I/O feature of Bitcoin, Litecoin, and Dogecoin was activated. The company also intended to gradually compensate the losses of users and credited the corresponding amount of debt tokens to their accounts for this purpose.