Cryptopia Exchange Prepares to Release Liquidation Report

With a June 4 deadline, the report may shed more light on the hack, but it remains uncertain whether the exchange intends on reopening.

Cryptopia, the crypto exchange which shut down and entered liquidation is now preparing to release the monitors’ report in a few days. The exchange set a June 4 deadline for the release of the paper by the appointed liquidators.

https://twitter.com/Cryptopia_NZ/status/1131387671161425922

In the meantime, Cryptipia wallets are keeping an indeterminate amount of various types of digital assets. The hacked funds are still under the control of the hacker, and some of them were recently sold.

Cryptopia once again locked withdrawals and set out a reminder not to send any funds to known Cryptopia addresses. In the past, Cryptopia has locked separate wallets, disallowing withdrawals due to technical difficulties. But the latest announcement of a liquidation procedure goes counter to the claims that the exchange would attempt to function once again while covering its losses with a “haircut” for holders of various coins and tokens.

In the meantime, both Nova Exchange and Next.exchange are offering to re-list some of the coins and tokens that relied on Cryptopia for their liquidity. GreenDex also re-lists some of the assets, as announced recently:

https://twitter.com/GreenDEXnet/status/1131234188928180225

Additionally, users are urging the exchange not to liquidate the funds and return the digital assets remaining:

https://twitter.com/AID841/status/1129788304478674946

The Cryptopia closing was followed in just a few short days by Cobinhood announcing layoffs, while one of its ICOs, Dexon (DXN), saw coins dumped on the open market to crash the price. The Cryptopia hack also coincided with the closing of QuadrigaCX, the exchange that allegedly took away between $145 and $190 million worth of assets in both fiat and digital currency. More recently, Bitfinex announced it had lost access to $850 million of its funds, following an international investigation of CryptoCapital, its banking and payment provider.

Exchanges remain one of the riskiest elements, as there are no regulations on custodial services and any compensations are based on an exchange’s ad hoc policy.

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