Cryptopia, which is a hacked crypto exchange based in New Zealand, appointed Russell Moore and David Ruscoe from audit and consultancy firm network Grant Thornton New Zealand as its liquidators. This news has been released in one official announcement of Grant Thornton on the 15th of May.
Cryptopia suffered significant losses because of the hack
Grant Thornton New Zealand or NZ is actually the local network of Grant Thornton International, which is the major professional services network of independent consulting and accounting member firms.
As it was reported somewhere in the middle of January 2019, Cryptopia revealed that it was the target of a security breach, which resulted in significant losses, with the attack continuing for about two weeks after the initial detection until the exchange finally succeed to regain control of its wallets.
Cryptopia made the decision to go into liquidation, according to Grant Thornton NZ, as it could not return the business to profitability, notwithstanding the reported efforts of the management to reduce the costs. This decision was deemed as the best interests of customers, staff, as well as other stakeholders, according to an announcement.
The new liquidators will lead an investigation
The liquidators are going to conduct research, as well as focus on securing assets for the benefits of the stakeholders, during which all of the trading services on the platform are going to be suspended.
In one statement, David Ruscoe said that they realize that the customers of Cryptopia want this matter resolved as soon as possible. They are going to conduct a thorough investigation, and they will work on a few different stakeholders, which include shareholders and management, to find the right solution which will also be in the best interests of stakeholders and customers.
He also added that as of the complexities of the case, Grant Thornton NZ expects that the investigation is going to take several months instead of weeks. The liquidators are now working together with some independent experts, as well as the relevant authorities, to determine the obligations of the company.
Other crypto exchanges were also targets of major hacks
The local network is going to publish an initial report to the New Zealand Companies Office website during the upcoming week. Just like it was reported during January, Cryptopia had told the users that it has been undergoing unscheduled maintenance, issuing a few updates before it officially reported the hack.
Some analysis from the blockchain infrastructure firm called Elementus, it was estimated during February that more than $16 million worth of Ethereum or ETH and ERC-20 tokens have been siphoned from the platform at the time of the attack – $3.2 million of which have been later traced in liquidations on exchanges like Binance, Etherdelta, as well as Bitbox.
Earlier in May, the primary cryptocurrency exchange Binance has also been the target of a major hack which resulted in the theft of almost $7,070 Bitcoin or BTC from the hot wallets of the exchange, which were worth about $40 million at that time.