• Days
  • Hours
  • Mins
  • Secs
  • Wed, 18 Sep 2019, 07:46 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Hacked cryptocurrency exchange Cryptopia seeks bankruptcy protection in New York

Cryptopia Limited [Public domain]

Tue, 28 May 2019, 03:48 am UTC

Cryptopia’s assigned liquidator Grant Thornton New Zealand revealed on Monday that it has filed for bankruptcy protection in the United States following the cryptocurrency exchange’s hacking incident in January.

The professional services firm has also taken steps to preserve Cryptopia's data stored and hosted on servers with an Amazon-based company.

In its update, Grant Thornton stated that the urgent interim relief applied will preserve the Cryptopia information that “includes a SQL database containing all account holders’ individual holdings of cryptocurrencies and the account holder contact details. Without this information, reconciling individual holdings with the currencies held by Cryptopia will be impossible.”

The bankruptcy court in the Southern District of New York issued an order to Cryptopia granting its emergency motion for provisional relief until June 7, unless extended by the court.

Grant Thornton added that it will take “some months at least” to process the recovering of data and determining which account holders own which digital assets.

Meanwhile, the Arizona-based firm hosting Cryptopia’s servers is reportedly terminating its agreement and asking about $2 million in compensation, according to a report from Bloomberg.

We understand that this delay will be frustrating for account holders. For that reason, we are working to resolve these issues as soon as reasonably practicable,” Grant Thornton stated.

Grant Thornton was also expected to file an initial Cryptopia Ltd Liquidators report on the New Zealand Companies Office website last week. In a tweet, Cryptopia said the New Zealand Court granted them a 10-working day extension, and the report is now due on June 4.

Cryptopia suffered a security breach in mid-January that resulted in “significant losses.” Whale Alert, a live tracker of large crypto transactions, said that at that time, 19,391 ether (ETH) tokens and around 48 million centrality (CENNZ) tokens were transferred from Cryptopia to an unknown wallet on January 13.

Despite the mess, CoinDesk reported that Cryptopia former founder and programmer Adam Clark is seeking a second shot in the crypto business with a new exchange platform called Assetylene. Based on his LinkedIn account, Clark has left Cryptopia since February 2018 and has been developing the new product for the last nine months.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,252.90 (+0.03%)
  • Ethereum (ETH) $215.59 (+8.42%)
  • XRP (XRP) $0.306100 (+15.91%)
  • Bitcoin Cash (BCH) $326.21 (+5.60%)
  • Litecoin (LTC) $75.96 (+3.95%)
  • Bitcoin (BTC) $10,252.90 (+0.03%)
Sep 18, 2019 (Wednesday)
04:56
Crypto exchange Binance.US to not launch in 13 U.S. states
04:29
VanEck, SolidX pull out bitcoin ETF proposal from SEC
04:19
Crypto Technicals: XRP/USD cools slightly from 6-week highs at 0.3129, finds stiff resistance at 21W EMA (0.3186)
04:19
AssetBlock launches new property trading platform tokenizing $60M of real estate on Algorand's blockchain
03:42
'Big Four' auditing firm Deloitte lets employees pay canteen food in bitcoin in a trial run
03:37
Former CFTC chairman 'crypto dad' J. Christopher Giancarlo joins Chamber of Digital Commerce's advisory board
03:32
Coinbase Vice President Dorothy DeWitt to lead CFTC market oversight
03:29
Japan's LINE launches crypto exchange platform Bitmax
03:19
Crypto Technicals: ETH/USD breaks above 200-DMA, hits 5-week high at 215.00
Sep 17, 2019 (Tuesday)
14:34
Wells Fargo to pilot internal blockchain-based digital currency for payments
12:57
Marsh, Arch Insurance (UK) Limited launch insurance solution for digital assets ‘Blue Vault’
12:18
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:17
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:45
Crypto exchange Binance backs Chinese crypto news portal Mars Finance
10:55
Crypto Technicals: XMR/USD rejected at 200-DMA, scope for resumption of weakness
10:18
Hedera Hashgraph blockchain goes live with 26 dapps
08:38
Crypto Technicals: Ethereum pauses shy of $200 mark, set to extend bullish momentum
07:38
Harbor tokenizes iCap Equity’s $100M real estate funds using ethereum blockchain
06:48
Crypto Technicals: BCH/USD fails to extends weakness below 200-DMA, retrace above will see upside resumption
06:02
Women in Leadership: Publicis Sapient hires Merril Lynch veteran Priya Bajoria as SVP Financial Services
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft