Four months after suffering a security breach that led to losses worth over $16 million, New Zealand-based cryptocurrency exchange Cryptopia has finally given up the ghost.
The company tried to stage a comeback in March by resuming operations on 40 crypto trading pairs, but users were then faced with an “undergoing maintenance” message just recently.
The maintenance, it turns out, was actually just a cover for a security audit the company was going through. Cryptopia has since announced that it is completely putting a stop to all operations and is currently in liquidation.
“David Ruscoe and Russell Moore from Grant Thornton New Zealand were yesterday appointed liquidators of Cryptopia,” says a press release posted on the Cryptopia website.
“Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was, in the best interests of customers, staff and other stakeholders.”
Investigation to take months
According to Cryptopia, the liquidators are currently focusing on securing assets for customers, staff, and other stakeholders. Trading is, of course, suspended during the liquidation process.
The press release notes that due to its complexity, the investigation, as well as the entire liquidation process, are expected to take months to complete.
“The liquidators are also working with independent experts and the relevant authorities with regards to the company’s obligations,” the press release continued.
“Grant Thornton will be contacting all customers and suppliers about its appointment in the next few days.”
More crypto exchanges shut down
Cryptopia is just one of several crypto exchanges that had been forced to shut down this year. Another is crypto exchange Coindelta, which shut its doors last month. The latter didn’t suffer through a massive hack, though, and instead was closed down due to the severe banking restrictions India has imposed on cryptocurrencies.
Coinome, another crypto exchange based in India, suffered a similar fate. Following its decision to cease operations, the company released a statement lamenting the lack of proper regulatory frameworks put forth by the Indian government.
“India is currently going through uncertainty on crypto guidelines and regulations,” the statement reads. “The government of India has not yet taken a decision on the regulatory framework for crypto exchanges or wallets. Further, the supreme court is yet to act upon the public interest litigation (PIL) on (the) regulation of crypto assets.”