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Cryptopia Starts Liquidating Assets, Creditor Repayment Date Still Unknown

2 mins
Updated by Kyle Baird
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Cryptopia was the first exchange to be hacked in 2019 and has arguably handled the situation worse than most exchange platforms, leaving customers in limbo for weeks while those in charge struggled to identify what went wrong.
To this day, Cryptopia still has not revealed exactly how their wallets came to be compromised, nor have those behind the platform elaborated on how much was stolen, or how they plan to repay affected parties, despite revealing this information back in May, as BeInCrypto has previously reported. However, according to blockchain analytics firm Elementus, around $16 million in cryptocurrencies was stolen from the hot wallets of the New Zealand-based cryptocurrency exchange platform. Cryptopia More recently, according to a report released by Cryptopia’s liquidator, Grant Thornton, Cryptopia still owes its creditors a total of $4.22 million. While the liquidators were reportedly able to recover at least some of the stolen digital assets, the exact amount remains undisclosed. As part of the plan to repay creditors, Skylarc, an online auction specialist operating in New Zealand has been tasked with selling off much of Cryptopia’s physical assets. Bidding starts at $1, with the auction closing on October 20, 2019. The auction includes dozens of items, much of which are server equipment, computer workstations, laptops, and desktop PCs. The auction also includes a variety of non-tech items, including an entire gymnasium comprised of a variety of exercise machines, weights, and racks, as well as general office equipment such as chairs and desks. Cryptopia Skylarc notes that the auction includes “over 800 lots of near new laptop and desktop PC’s some new in boxes, server racks and associated infrastructure [..] and much more!” However, rather than selling stock as a single lot, it appears that Skylarc is instead listing them as individual items via New Zealand’s largest internet auction site—Trade Me. Based on the list of items provided on the website, it appears that Cryptopia is likely to fall well short of the $4.22 million owed to creditors, though it seems that any cryptocurrency held by the company will be sold in a separate auction. Were you affected by the Cryptopia hack? Has it done enough to properly inform their creditors about the current situation? Let us know your thoughts in the comments below.
Images are courtesy of Shutterstock.
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Daniel Phillips
After obtaining a Masters degree in Regenerative Medicine, Daniel pivoted to the frontier field of blockchain technology, where he began to absorb anything and everything he could on the subject. Daniel has been bullish on Bitcoin since before it was cool, and continues to be so despite any evidence to the contrary. Nowadays, Daniel works in the blockchain space full time, as both a copywriter and blockchain marketer.