Liquidators appointed to oversee the affairs of the now-defunct crypto exchange Cryptopia today released their first report on the progress of efforts intended at compensating the platform’s users.
The New Zealand-based exchange suspended trading earlier last month and appointed Grant Thornton to look into the exchange’s financial status. Now documents released today May 31 show that Cryptopia owes its creditors a total of $4.22 million.
Thornton notes that they have received a total of 69 unsecured claims from creditors, all amounting to $2.439 million. But liquidator has said that they expect more claimants to come forward in due course, which would see the figure rise.
In addition, the exchange’s employee entitlements at the time Cryptopia administrators filed for liquidation amounted to roughly $318,000.
Grant Thornton New Zealand also indicated in its press release that there was progress being made by Cryptopia’s liquidators David Ruscoe and Russell Moore. The firm, however, noted that a lot of the work remained, especially as the liquidators move towards securing and recovering of the platform’s crypto assets.
The exchange was the first major platform to suffer a hack this year when attackers exploited a security breach in mid-January and stole crypto worth millions.
A New Zealand court reportedly granted the liquidators authority to use some of Cryptopia’s crypto assets for the purpose of recovering and preserving assets. it is not possible at the moment to say when the investigation and liquidation process would be finalized, the firm noted in the statement.
The firm also noted that they understand customers may be frustrated at the speed of the investigation and thus asset distribution. But the lack of a “legal precedent on crypto assets in New Zealand and worldwide,” means liquidators rely to a greater extent on the directions given by New Zealand courts.
The total amounts estimated to have been stolen from the exchange is put at $16 million.