Topic: Pre court hearing update - Cryptopia Account Holder (Read 137 times)

Dear Cryptopia Account Holder,

Unsolicited communication
It has been brought to our attention that a number of Cryptopia Account holders have received an unsolicited email from the Hong Kong company “Classic Focus Limited” ("CFL") outlining a proposal to purchase their claim in exchange for a supposed digital coin.

The sole director of CFL is known to the Liquidators as having been found in contempt by the court for not disposing of Account Holder information that
he improperly obtained. The Liquidators have opened an investigation into how Account Holder's emails were obtained.

Regardless the Liquidators believe it is important to address this unsolicited communication to confirm that this email has nothing to do with the official claims process. The process of distributing account holders' cryptocurrency will be determined at a hearing at the High Court at Wellington on 13–15 November 2023. 

It it important for those considering this proposal to seek independent advice. The Liquidators' view is that this offer is not in the best interest of Account Holders. In particular, we believe it is important to note the following:
Typical asset and fiat-backed digital currencies like Tether and USDC produce proof of their reserves through audits.  While the digital coin COG, mentioned in the CFL proposal, is supposedly backed by assets and traditional fiat currency reserves. There is no independently verifiable audit of its reserves.
The utility of the COG currency is questionable, given there is no named entity, exchange, or business that will accept this coin beyond an associated virtual metaverse and non-physical principality to which the crown prince is the sole director of the Hong Kong company fronting the offer. (You might also ask why a New Zealand-based person uses a Hong Kong company to front this offer.)
Lastly, the CFL Proposal letter claims that the offeror has a relationship with several parties. The Liquidators have an existing relationship with one of those parties. We sought confirmation of their involvement in the CFL proposal, and they have confirmed that they have no knowledge of this offer and are not engaged by CFL in any regard.
The Liquidators encourage all Account Holders (regardless of value held) to register in the claim process, so it is possible to return as much value as possible. One of the legal directions sought is for those who do not participate in the process to bear the cost of the distribution process. This will allow us to return more to smaller holders of Cryptocurrency.

Legal directions
Submissions have now been filed ahead of the hearing date scheduled 13–15 November 2023 in the Wellington High Court (CIV-2023-485-41113-15), in relation to the directions regarding the distribution of Cryptocurrency to Account Holders. Copies of these submissions can be found at the below link.

The full application for directions can be found in our Update for Cryptopia Claimants and Stakeholders 17 August 2023

If you are having trouble with the Claims Portal, please raise a ticket through the Cryptopia Customer Support Portal. This support portal is separate from the claims portal and can be accessed by any account holder, provided they register and click the “Sign Up” button on the page.

Lastly, a reminder that the only official communication from the Liquidators will be sent from a  @cryptopia.co.nz email.  Please take care to ensure that any communications asking you to deposit further funds are not scams.

This is an automated email, please do not reply.
Update for Cryptopia Claimants and Stakeholders - 2 November 2023

If it ever came out that GT was acting outside of their obligation by The Court to act on behalf of the Cryptopia members then I'm sure The Courts would take a dim, dark view of that outcome and act accordingly.

Do you think there is something in this for Grant Thornton apart from the obvious moving along of Cryptopia victims?

I also received such email but i doubt its legitimacy because i receive emails from "[email protected]" way back on month of august regarding the claimant portal and other subjects, so why they use such different emails to notify their users.

There was an eerily quick follow up email by GT which bordered on rambling followed by a second email from the above essentially reiterating the offer.

IN A NUTSHELL (their words, not mine):  are owed less than $500 in dust - take the offer.  Are owed more than $500 in crypto, take your chances with GT who are (again, their words) draining the funds with their fees.

My prediction is that in the results of the trial you will get the right to return your money, regardless of the claim verification process, this situation is actually in your favor. Then, a company comes along and offers a $0 token, the situation changes back to 50/50 odds.
To convince you: With that kind of fundraising method, will the token become viable? I think many former Cryptopia users don't want to take on this uncertainty.

I also received such email but i doubt its legitimacy because i receive emails from "[email protected]" way back on month of august regarding the claimant portal and other subjects, so why they use such different emails to notify their users.

I got an email from with the subject of "Pre court hearing update", which stated that Cogito is willing to buy my coin holdings in Cryptopia. I feel this is a scam attempt to get my personal details and is not linked with Cryptopia in any way.

Posting the whole email below so people can be aware of what it is all about.

Note: If this is a legit email / offer , then also do let me know. Thanks

[email protected]

Dear Cryptopia Account Holder

You will have received recently an offer from Cogito to buy your coin holding in Cryptopia. Following a few questions through our help desk we have put together a few key answers to questions.


1. The agreement to purchase your coins for C500 Cog is a purchase regardless of your coin value under $500. So if you have $499 worth of coins you get C500, if you have $2 worth of coins you get C500. So you have nothing to lose.


2. If you have more than $500 worth of coins , you will receive C500 straight away and then a top up of Cog once we get the reconciled value from the liquidator.


3. You don't have to have successfully completed the liquidator’s verification process to be able to accept the offer.


4. Cog is a digital currency that can only be used in the Cogito economy. It is not able to be converted to fiat or moved to any exchange. The Cogito Metaverse is growing every day with many opportunities being developed all the time. Shortly there will be investments available; and in many countries there is a growing number of businesses accepting Cog.


5. The Cogito offer is specifically structured for those people who may have such a small amount it is not worth the effort or the verification process was too hard for a variety of reasons.


6. We are in court in New Zealand for four days starting 13th November to sort the distribution of coins and get some clarity on the process of the Cogito agreement. So time is against everyone, if you are going to accept now would be a good time to do it.


7. We believe now Cogito is the single largest coin holder by value and so we do have strong standing in the courts in New Zealand.


8. If you accept the offer and change your mind you have a 7 day cooling off period.


The link to selling your coins is here : https://principalityofcogito.com/cryptopiaform


Regards

Martin Braine LLB

In House Lawyer

Principality of Cogito


Ps : If you have any questions please free to contact us once logged in to CogitoMetaverse