Cryptopia goes out of business, suspends trading and appoints liquidators

15 May, 2019
by Jelmer van der Dussen
Breaking News
Cryptopia goes out of business, suspends trading and appoints liquidators

Cryptopia is going to close the exchange. Trading on the New Zealand exchange has been suspended and liquidators have been appointed to 'secure the assets for the benefit of all stakeholders'.

The website of Cryptopia went offline on Tuesday because of 'maintenance', with a lot of people concerned about a new hack. Now, Cryptopia has announced on their Twitter account that it will go out of business and David Ruscoe and Russell More from Grant Thornton New Zealand were appointed as liquidators of Cryptopia Limited.

According to a statement, the hack of Cryptopia in January 2019 'had a severe impact on the company's trade'. Trading has been disabled with immediate effect, meaning users can't trade or get their funds off the exchange. It's not yet clear if users will be able to retrieve their funds, and the investigation is going to take months.

"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", says David Ruscoe. "Given the complexities involved we expect the investigation to take months rather than weeks."

In the statement Cryptopia says that the liquidators are 'also working with independent experts and the relevant authorities with regards to the company’s obligations. Grant Thornton will be contacting all customers and suppliers about its appointment in the next few days.'

In the hack in January, around $16 million worth of cryptopcurrency was stolen from the exchange. Cryptopia went offline for months, and reopened again mid-April. Now, the company says that '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.'

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