Worse still, as many as 44,000 early customers holding $23 million were never verified nor had any type of trading limit imposed. Adding further insult to injury is the fact that “thousands of accounts” holding over $3 million have been traced to remote islands near Australia that are uninhabited. Thousands more could not be traced to any location at all. Traders Must Provide More Info to Reclaim Assets After the infamous hack of January 2019, in which some $24 million in crypto assets was reportedly stolen, the struggling exchange attempted to open its trading doors again. Unsurprisingly, it failed to regain the trust of its users and was forced into liquidation in May of the same year. Its liquidator’s affidavit states that the theft involved many cryptocurrencies including bitcoin, ether, and litecoin. These assets were being held in a data center in Arizona to which the liquidators had to travel to retrieve customer information. A four-day hearing was to begin this Tuesday at the Christchurch High Court to determine ownership of the partially recovered crypto-assets (now reported to be worth as much as $250 million), in order to transfer them back to traders. However, Cryptopia liquidators are still painstakingly trying to identify individual accounts as the funds were pooled together in a merged wallet. Moreover, the latest evidence of the exchange’s AML breach throws yet another wrench in the works. Before assets can be returned to traders, its liquidators stated that they would need to provide additional identification information to comply with anti-money laundering laws. According to its second report in Dec 2019, Granth Thornton had recovered some $5 million in assets from a third-party account and had some $7 million on hand to fund the liquidation. What do you make of these latest Cryptopia developments? Add your thoughts below!
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