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Hacked Cryptocurrency Exchange Halts Trading as Cryptopia Goes into Liquidation

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Hacked Cryptocurrency Exchange Halts Trading as Cryptopia Goes into Liquidation

Hacked Cryptocurrency Exchange Halts Trading as Cryptopia Goes into Liquidation

  • In January 2019, Cryptopia lost $23 million in a hack
  • Crypto exchange appoints liquidators, Trading suspended
  • Crypto community suspects an exit scamChristchurch-based cryptocurrency exchange Cryptopia announced on Twitter that it has appointed David Ruscoe and Russell Moore from Grant Thompson as liquidators.

Back in January, this year, Cryptopia lost $23 million to hackers that had a severe impact on the company’s trade, states the Press Release.

“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.

An Exit Scam?

Just yesterday, we reported the New Zealand-based exchange has been down that concerned the community over the prospect of another hack and now today the company released its liquidation report.

Trading on the platform is suspended while the investigation will take place, which is expected to take months instead of just weeks “given the complexities involved.”

The liquidators are working with independent experts and authorities with regards to the company’s obligations. It has been further mentioned that an initial report will be made available on its website next week.

The liquidators shared that despite the management’s efforts to cut down the costs to return the business to profitability, it was decided to appoint the liquidators as it was “in the best interests of customers, staff and other stakeholders.” Currently, the liquidators are focused on securing the assets.

The shareholders of the company were informed on Tuesday by shutting down the premises in the suburb of Sydenham and further posting a notice on its website that says, “Don’t panic. We are currently in maintenance.”

New Zealand-based news publication Stuff reported that office building was “mostly deserted.” Several unmanned staffers pointed out how the company has downsized in the recent weeks while reportedly, the investigation was continuing. However, the crypto community is not happy with this as one affected user says:

“So you are dissolving the company? and you do this without allowing us to withdraw?”

As people don’t get a chance to withdraw their funds, community calls out a scam:

“Please allow us to cancel our order and withdraw our coins – anything less is amount to stealing,” says one user.

Another user remarked:

“Maybe they are the real hacker & all this shit was planned.”

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