In an update released earlier today following the announcement that it had gone into liquidation, Cryptopia has warned users that they may not get all their funds back, if at all.
Per the exchange, an investigation is underway to determine ‘the amounts owing and available to return to customers’. Before then, the cryptocurrency exchange cannot give clients any guarantees that they will get all their funds back:
Until the investigation is complete, we cannot return any crypto-assets to customers, or confirm whether individual customers will get all of their crypto-assets returned.
Months of Agony for Cryptopia Users
According to Cryptopia this investigation process is complex and might require ‘direction from the New Zealand Courts’. Additionally, the investigation is expected to take months. The exchange has already frozen deposits and withdrawals on its platform. Some users of the exchange have taken to Twitter casting suspicion on the whole debacle.
This is blatant misappropriation of funds and should be handled as such. You all should face jail time. Why shortly before the audits were done you had the hack? Guess we never owned the coins on your exhange did we?
— Kai (@KNietner) May 17, 2019
Amidst all the uncertainty, Cryptopia has admitted that the security breach five months ago is the root of all its problems. Cryptocurrencies worth approximately $15 million (NZD$23 million) are estimated to have been lost to hackers following the breach. Specifically, Cryptopia has stated that disclosed that ‘the hack earlier this year contributed to the issues which led to the liquidation’. Consequently, the exchange ‘could not meet its debts as they fell due’.