March 8, 2021

Cryptopia liquidator returns $ 5 million to affected exchange customers

Cryptopia liquidator returns $ 5 million to affected exchange customers

The liquidator, the manager of the New Zealand exchange Cryptopia, will return to customers about $ 5 million stolen in hacking result.

Grant Thornton, acting on behalf ofexchange, published detailed information on the amount of assets to be redeemed, and also spoke about the difficulties encountered in identifying the owners of crypto assets.

So, by now the company has received about10 million New Zealand dollars ($ 6.61 million) from the sale or conversion of Cryptopia assets. At the same time, a fee of $ 3.7 million New Zealand dollars ($ 2.45 million) was withdrawn for services, the remaining $ 4.16 million will be distributed among the victims of the hacking of the exchange.

The distribution process itself will only be realized after some time, since the liquidator has yet to determine the true owners of the assets.

According to Grant Thornton, the exchange has more than 900,000 customers, and requires an estimate of a million transactions:

We are working on the identification of accounts of more than 900,000 active customers, many of whom owned several cryptocurrencies and made millions of transactions.

Difficulties arose due to the fact that Cryptopia combined the funds of users, and did not store them on separate wallets tied to separate accounts.

While Cryptopia kept information aboutassets of customers, the coins themselves were combined (mixed) in wallets. Like a centralized exchange, customer transactions took place in the internal registry of the exchange without confirmation on the blockchain.

The liquidator emphasized that Cryptopia did not check the amounts in its wallets with the customer database, thus, the process of property distribution was difficult.

Recall that Cryptopia was eliminated in May. The next liquidator report is due by May 2020, and the Supreme Court hearings are scheduled for February.