A well-deserved payback – On January 15, 2019, New Zealand crypto-exchange Bitcoin Profit lost nearly $ 18 million in cryptocurrency in a resounding hack . However, good news is on the horizon for the victims. Compensation should be put in place by December 2020.
After fatal hack, liquidation continues
The Cryptopia trading platform has never really been able to recover from its major hack . Although the crypto-exchange attempted a reopening in March 2019, barely 2 months later (in May), it went into liquidation for good .
Business consulting firm Grant Thornton has since been on the case and intends to distribute the remains of the defunct exchange.
In an update published on September 18, the consulting firm explains “having made further progress in the liquidation” .
The complaints registration process is expected to be in place by Grant Thornton by the end of this year 2020 .
KYC mandatory, but refund in crypto
In the remainder of its press release, Grant Thornton is allowing a question-and-answer session to anticipate complaints from injured users of Cryptopia.
So, to the question „will identity verification (KYC) be required?“ » , The answer is clear for those who would have preferred to remain discreet:
“The KYC process cannot be avoided because it is a legal requirement in New Zealand. (…) Please note that customers who have already followed the KYC procedure with Cryptopia will still have to follow the procedure we have established. “
The 960,000 Cryptopia users can however rejoice, because their cryptocurrencies will not be liquidated in fiat currencies :
“The Court’s instructions indicate that the reimbursement of clients‘ assets should be made, as far as possible, in crypto-assets. “
This will also have the merit of avoiding mass crypto liquidations , as we had unfortunately seen with the Japanese liquidators of MtGox . This fear had succeeded, on its own, in generating a downward movement in Bitcoin prices.
The next report from Grant Thornton is due out in December 2020. By then, precise instructions for claiming compensation should already have been communicated to the unlucky Cryptopia customers.