Crypto Exchange Cryptopia Appoints Liquidators Months After Being Hacked

New Zealand-based cryptocurrency exchange Cryptopia, which was hacked in January of this year for an estimated $23 million worth of cryptos, has recently appointed David Ruscoe and Russell Moore as liquidators, and halted trading on its platform.

According to local news outlet Stuff, Ruscoe noted the liquidator, professional services firm Grant Thornton New Zealand, realizes Cryptopia’s customers want to see the issue resolved as soon as possible. He added:

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.

The cryptocurrency exchange has suspended trading on its platform while the investigation is ongoing. It’s expected to take months over the “complexities involved.” Grant Thornton noted Cryptopia’s management tried to cut costs after being hacked in January to become profitable again, but decided appointing liquidators was in the best interest of its staff, customers, and stakeholders.

The company’s premises in Christchurch have been locked down, and the company has since posted a notice on its website and on social media informing users of what’s going on.

As covered, Cryptopia’s hack was seen as an unusual one, as instead of being able to drain one cryptocurrency wallet right after gaining access, hackers seemingly managed to withdraw funds from various wallets over an extended period of time, suggesting staff wasn’t able to stop them.

Experts believe the exchange’s hackers managed take as much as $23 million worth of ether and ERC-20 tokens, and had reportedly cashed out as much as $3.2 million by February, $2 million of which through a decentralized exchange.

Cryptopia itself was allowed to reopen in February, and according to Stuff people close to the company revealed it had been cutting costs as much as possible, “leaving a skeleton crew,” to try and stay afloat.

Commenting on Cryptopia’s announcement, various customers expressed frustration over not being able to withdraw their funds after the security breach. Some called for creditors to take legal action against the trading platform.