Cryptopia Liquidators Face New Hurdle Estimating Crypto Holdings
Ever since Grant Thornton were appointed as liquidators of the defunct Cryptopia exchange it’s been an uphill struggle. Now, they can’t determine whether the funds in users’ accounts actually match the amount held in the hacked exchange’s hot and cold wallets.
Cryptopia Liquidators Submit Plea to Court
You have wonder whether Grant Thornton knew they’d face so many problems when they took on the Cryptopia challenge. From finding out that users’ funds were sent to co-mingled wallets to uncovering massive KYC/AML breaches, the hurdles have kept on coming.
The biggest problem they now face is that of determining whether the balances that Cryptopia showed on customer accounts is the same as its balance in its hot and cold wallets. In an update on March 10, the liquidators submitted a plea to the New Zealand court to help them speed up the process.
The Cryptopia hearing was held 11-14 February at Christchurch High Court. No judgement was delivered with Justice Gendall reserving his judgement. The Liquidators have today uploaded subsequent affidavits and submissions in regards to the proceedings here: https://t.co/94p7iurDKQ
— Cryptopia Exchange (@Cryptopia_NZ) March 10, 2020
In the Submission of Counsel for the Liquidators document, the company reiterates its problem to the Court:
Liquidators have not been able to ascertain whether Cryptopia’s actual cryptocurrency holdings, in the hot and cold digital wallets held by it, corresponded with the verified coin balances of account holders, as recorded in the SQL database, at any given time.
It further states that, if forced to perform a ‘reconciliation process’ to ascertain the true figures, it will take a very long time.
Waiting for the reconciliation process to be completed before determining the trust issue may significantly prolong the resolution of the issues set out in the Application, and the ultimate distribution to creditors/beneficiaries. There is no certainty as to when the reconciliation process might be complete.
They, therefore request that the Court waive the need to follow the process in the interests of all Cryptopia victims. How the Court will respond is another matter. But it seems that everyone (including its liquidators) wants to close the case as soon as possible.
How long do you think this process will continue for? Let us know your predictions in the comments below!
Images via Shutterstock, Twitter @Cryptopia_NZ