Cryptopia Liquidators Have Made Progress But Yet to Announce Reimbursement Date

  • Liquidators for hacked crypto exchange Cryptopia report making strides in reconciling user funds.
  • Accounting firm stressed patience as they sort through more than 900,000 clients while complying with NZ laws. 

Liquidators for hacked crypto exchange Cryptopia have reportedly made strides in reconciling user funds, but have yet to announce a date for reimbursement. 

New Zealand-based Cryptopia was the first major crypto exchange hacked in 2019, notifying clients on Jan. 14 that it had suffered significant losses. In May, accounting firm Grant Thornton LLP was tasked with liquidating Cryptopia and attempting recovery of the assets to reimburse clients. 

Grant Thornton has previously reported on the difficulty of distinguishing individual account reimbursements, as the exchange pooled all of its funds into a shared wallet rather than using separate client wallets. 

However, the most recent stakeholder update claims the accounting firm says progress with reconciling the database is “well underway,” despite having to sort through more than 900,000 customers and 400 different crypto-assets. 

The update outlined how the accounting firm will proceed once user funds are reconciled, 

While our reconciliation process is progressing well, we still require direction from the New Zealand courts before we can return crypto-assets to customers. The information outlining the legal process included in the last communication is still current and is set out below.

Grant Thornton also stressed the slow process of complying with KYC in returning crypto-assets, which is a legal requirement in New Zealand. 

Featured Image Credit: Photo via Pixabay.com

Binance Acquires Crypto Debit Card Issuer for an Undisclosed Sum

Leading cryptocurrency exchange Binance has acquired cryptocurrency debit card issuer Swipe for an undisclosed sum, in a deal that gets the platform one step closer to issuing its Binance Card.

Finance Magnates reports the firms shared revealed the companies will “work together to further mainstream adoption of cryptocurrencies,” by further bringing fiat and digital assets together. The deal will allow for cryptos to be used as a payment method in the traditional financial system.

Binance unveiled its plan to launch a Visa crypto debit card earlier this year, but was having difficulties implementing it. The acquisition of crypto start Swipe should help fix these difficulties and support the exchange in its “mission of making crypto more accessible to the masses.”

Per Binance CEO Changpeng Zhao, off-ramps are a key component to be considered in its mission. He added:

By giving users the ability to convert and spend crypto directly, and have merchants still seamlessly accept fiat, this will make the crypto experience much better for everyone.

Binance and Swipe listed each other’s native tokens as part of the deal. Binance now has trading pairs for Swipe’s SXP token, while the Binance Coin (BNB) was added to the cryptocurrencies, stablecoins, and fiat currencies available as a payment method on Swipe.

Swipe, it’s worth noting, converts cryptoassets into fiat currencies at the point of purchase. Users pay in a cryptoassets of their choice, which is then converted into fiat currency the merchant receives, so the latter does not have to manage cryptoassets, or accept payments in them directly.

Swipe’s cards are issued by Contis Financial Services, a visa Principal Member regulated by the UK’s Financial Conduct Authority. They are available in 31 countries within the European Economic Area, and support transactions in euros, pounds, U.S. dollars, Korean won, and Philippine pesos.

The firm’s CEO Joselito Lizarondo revealed partnering will Binance will “place Swipe in the position to make cryptocurrencies more accessible for millions of users worldwide.” Binance Card users will be able to get up to 4% cashback in bitcoin on their purchases, which will be available in over 50 million locations in the world.

Featured image via Pixabay.