Topic: Cryptopia Cryptocurrency Platform Services and Development - page 33. (Read 173234 times)

Email received today for anyone else not in the know, or "for whom it may concern":

So this will be a very long process and they will still need to have KYC procedure for those customers who got affected of the hack because of Cryptopia's incompetence. This is kinda frustrating and while I still have coins in their possession, I might just give it up because I don't want to go under the stress of adhering in their "process". Also, those coins are worth nothing now so meh.  

Email received today for anyone else not in the know, or "for whom it may concern":
-snip-

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Since our last update we have made further progress towards securing and preserving Cryptopia crypto-asset holdings for the benefit of those entitled to them. Below is an outline of the progress we have made since our last update on 20 August 2019.

Legal directions

We applied to the High Court of New Zealand for directions and to ask the Court to appoint two Queen’s Counsel.

We are seeking directions regarding the legal status of customers’ holdings and the ability to hold Cryptocurrency on trust.

The Court has approved the Queen’s Counsel appointment. See the link below:

1. Court Orders as to Representation and Service [ 811 kb ]

This should be read in conjunction with the following documents;

2. Notice to Creditors Re Application [ 119 kb ]

3. Originating application with hearing date [ 884 kb ]

4. Affidavit of David Ian Ruscoe [ 4414 kb ]

5. Interlocutory application [ 1811 kb ]

6. Memorandum of counsel [ 740 kb ]

Reconciliation process

Our previous update mentioned the process to determine customer holdings.

We appreciate that customers wonder why it is taking so long for us to determine customer holdings. There are two main reasons for the time and complexity of the process:

Customers did not have individual wallets and it is impossible to determine individual ownership using just the keys in the wallets. While Cryptopia held details of customer holdings and reported these on the Exchange, the crypto-assets themselves were pooled (co-mingled) in coin wallets. As a centralised exchange, customers' trades would occur in the exchange's internal ledger without confirmation on the blockchain.
No detailed reconciliation process between the customer databases and the crypto-assets held in the wallets has ever been completed.
This process is well underway and will still take some time to complete. We are working to reconcile the accounts of over 900,000 customers, many holding multiple crypto-assets, millions of transactions and over 400 different crypto-assets.

We have split the reconciliation process into three main phases:

Securing assets and company data – We have recovered assets from Phoenix and have secured company data.
Wallet environment and customer reconciliation – Due to the January 2019 security compromise it was necessary to rebuild the full wallet environment. This was done to ensure no leftover malicious code from the January hack would corrupt the new environment. This recompiling is not a straightforward process, as over 900 different assets were supported by Cryptopia at one time or another.
Identifying users and repatriation of returns - This phase is at an early stage. A number of legal matters need to be resolved before this phase can progress.

Hacked assets

We continue to work with the New Zealand Police and international authorities as they work to determine the source of the January 2019 hack.

We are not investigating the root cause of the hack. Our obligation is to seek recoveries for stakeholders’ benefit. .We have therefore undertaken work scoping potential actions to trace and or freeze stolen crypto-assets. This is a complex situation with cooperation needed from third parties.

Sale of surplus plant and equipment

We have sold by auction excess desks, computer equipment, furniture and other items that are not required for the continued operations. This is a standard liquidation procedure.

Coin developers meetings

Over the past month we have held a number of webinars with affected coin developers, in order to better engage with the developer community, provide an overview of the liquidation process and allow the developers to raise any issues or concerns they have. So far we have received positive feedback on these sessions and we plan to hold further webinars.

What happens next

While our reconciliation process is progressing well, we still require direction from the New Zealand courts before we can return crypto-assets to customers. The information outlining the legal process included in the last communication is still current and is set out below.

We continue to liaise with our legal advisors about the legal status of crypto-assets, the legal relationship between Cryptopia and its customers, and to determine how crypto-assets could be returned to customers.

We have certain legal requirements and obligations in New Zealand and internationally that liquidators must meet, such as Anti Money Laundering/Know Your Client (AML/KYC) requirements when considering any repayment or return of assets.

The KYC process cannot be avoided, as it is a legal requirement in New Zealand. Before returning crypto-assets we will correspond with customers about how this process will be completed. Please note, customers who have previously completed the KYC process with Cryptopia will still need to go through the process set by us.

Anyone who did not complete KYC while the exchange was open will also be given the opportunity to confirm their identity.

Where to go for updates

We appreciate that you want to be advised of our progress on the Cryptopia liquidation. We will continue to update you as further information comes to hand. Updates can be found on the Grant Thornton New Zealand and Cryptopia websites and their respective social media channels.

The next statutory report is due in early December and we will provide a formal update on the liquidation progress via this report.  

Hi Russell,

I would like to know if you have emailed the KYC procedure to Cryptopia clients ?

I have not received any email regarding my holdings (unaffected by the hack).

Also, would you be able to let me know if the balance of user unaffected by the hack will be restored in full or not ?


Best regards

Haha so there you have it douchbag here is sitting on the edge of his toilet seat rubbing one out waiting angrily for the return of a tanking shitcoin in the hope it will be done soon. Wake The Fuck Up numbnuts, this is going on for years. YEARS. Your shitcoin will be lower than your sub moron IQ by then.
So chill dude, lose your virginity to a moose, get your penis enlargement surgery, take up anger management classes and live your miserably canuck bisexual cross dressing moose buggering life as best you can.

Well somebody or some people will get phenomenally wealthy thanks to the theft but what is the general consensus of the victims about it being an inside job?

Last I heard it was still be investigated but I don't keep up on it too much. I will say that for anyone performing the investigation (assuming they go to this level), it takes a long time to learn some system, go through all the code, analyze all the data of transactions going back and forth and on and on. So unless there's something blatantly obvious, it can take a long time to find proof of "theft" or fraud of some sort.

Was it thoroughly investigated if they were hacked because of negligence or because of an inside job or is that process still on-going with the Police side-by-side while Grant Thornton do their investigation?

They've stated they're using some of the funds to pays creditors you dumb fuck. Stop even commenting on anything I say you fucking idiot.

I at least have evidence for my claims where as you have zero evidence for anything you say. Like your  zero evidence  claim that this will take years to finish. We all know you work for Cryptopia so get the fuck off this bitcointalk and go fucking jump off a bridge you piece of shit.

claim that this will take years to finish

How do you propose an insolvent company comes up with an extra $300 million in cash?

Also, be careful what you wish for. Imagine if in a few years time, when the liquidation was finally completed, customers were paid out something like 70% of their balances in USD (or NZD) based on "hack time value", but BTC was up 300% since then...

Personal slush fund, wtf, what evidence do you have this is happening?

On top of that these lowlifes at Grant Thornton are treating the customers coins are they're own personal slush fund that they can dip into and pay they're own fees as well as creditor fees.

This is why we need lawyers representing us in the New Zealand courts so these lowlifes at Grant Thornton don't give us back a fraction of what were owed.

We should get the value of the coins at the time of the hack not what they're worth right now. The altcoins have gone down in the satoshi value and BTC has gone down in USD value. So say for example the coins were worth 400 million USD at the time of the hack. They're probably worth about 100 million USD right now.

Were they at least investigated thoroughly for fraud? Does anybody know if they were at any point arrested for questioning before being completely discharged?

And what was the official reason given for them not being charged with any criminality?