Popular Exchange Announces Liquidation
Well known New Zealand based exchange Cryptopia shocked many traders and Bitcoin enthusiasts earlier today. In a surprise announcement the exchange announced its closure and appointed Grant Thornton as its liquidators. Grant Thornton is a global advisory and accounting firm.
Cryptopia has been struggling ever since it was hacked in January 2019. The hack caused the equivalent of $16 M USD or roughly 9% of Cryptopia's assets to be lost.
The timing for Cryptopia's liquidation seems very unfortunate. With Bitcoin climbing to $8K and hype returning to cryptocurrencies, Cryptopia could have generated a lot of profit.
It appears however that trading was most likely suspended due to Cryptopia's liquidation. As per their announcement:
"The highly publicised hack of Cryptopia's exchange in January 2019 had a severe impact on the company's trade. Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was in the best interests of customers, staff and other stakeholders."
"The liquidators are also working with independent experts and the relevant authorities with regards to the company's obligations.
Grant Thornton will be contacting all customers and suppliers about its appointment in the next few days."
It appears that client's funds are still safe at the moment and funds will be allowed to be withdrawn. The fall of another prominent exchange is unfortunate, however.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado