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Crytocurrency News: $2.7 Million Cryptopia Owes To Creditors: First Liquidator Report

Cryptopia one of the most controversial hacks of 2019 once again has become the matter of apprehensions due to the company’s first liquidator report which published today, showing a pending debt of over $2.738 million to creditors, which is essentially huge.

Reportedly, earlier this month, the Christchurch, New Zealand based defunct cryptocurrency exchange Cryptopia Limited posted on company’s Twitter account about the closing of business and appointment of two liquidators i.e., David Ruscoe and Russell More from Grant Thornton New Zealand on May 14, in order to secure the assets of the stakeholders under section 241(2)(a) of the Companies Act 1993.

The liquidators of the nosedived cryptocurrency exchange in their 1st financial report uncovered the monetary situation of the establishment which was hacked by $16 million worth of cryptocurrencies during Jan 2019.

The investigators have shown the state of Affairs in accordance with section 255 of the Companies Act 1993, while jointly functioning with various stakeholders including management and shareholders. The report shows that the liquidators are not responsible for the mentioned information or any inaccuracies in the statements because they haven’t carried out an audit of the information provided it to them.

However, the failed cryptocurrency exchange’s tax liabilities are still unspecified. Reportedly, reasoning that when the firm filed for liquidation the New Zealand’s tax authority was carrying out an audit.

Allegedly, there are 69 unsecured creditors claiming around USD 1.37 million and secured creditors including DELL NEW ZEALAND LIMITED and COCA-COLA AMATIL (NZ) LIMITED claiming approx.…912,000 USD, with an expected deficit of $1.63 million. Here, the liquidators referring to the company’s electronic record.

Also, under Cryptopia’s outstanding debt the staff’s amount includes salaries and holidays worth around 207,000 USD and 177,000 USD, respectively.

Moreover, Grant Thornton with an intention to secure and maintain Cryptopia’s data which is stored and hosted on servers with an Arizona-based firm filed for the bankruptcy protection in the U.S. The filing stated that the company is holding cryptocurrencies in the wallets along with the customer transactions data and the liquidators are in the process of finding out the actual amount of customer holdings which is not confirmed yet.

In the report it is also indicated that on 29 May 2019, the High Court ordered the company to use the Bitcoin(BTC) which is there in the firm’s wallet outside of the known client funds, can be used can be used for the liquidation, protection, and preservation of crypto-assets after converting into the fiat currency.

Further the liquidator included the information in the report of the firm’s possession at the time of liquidation and saying Cytopia is holding 691,229 USD in cash and carrying a loan of 150,000 USD. The owing also includes $1.3 million worth of fixed assets which to be sure expected to increase with the upward market trend.

Image by Rilsonav from Pixabay

Tags: Cryptopia, Hack, Bitcoin (BTC), Grant Thorntan, Grant Thornton New Zealand, Liquidators, David Ruscoe and Russell More, Cryptocurrency, Possession, Bankruptcy Protection, U.S., DELL (NZ) and COCA-COLA AMATIL (NZ), Hacked Cryptocurrency Exchange, Unsecured Creditors, Secured Creditors, Financial Report, Monetary Situation, Section 255 of the Companies Act 1993, Stakeholders, Management, Shareholders, $16 million Hacked, Pending Debt

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