Bitcoin Exchange Cryptopia: insolvency administrators guarantee customer data 2

Bitcoin Exchange Cryptopia: insolvency administrators guarantee customer data

In the insolvency process around Cryptopia, an exchange of New Zealand bitcoins, there is good news. How did Grant Thornton, which works as a bankruptcy administrator for the stock market, announce on its website, August 20, an update for Cryptopia users.

As part of this update, Grant Thornton apparently managed to secure lost client data:

We are progressing satisfactorily in securing and maintaining Cryptopia's crypto-active holdings. This benefits those they belong to,

it says in the message.

According to this statement, the process of backing up Bitcoin trading data has been running since July 2019. According to the statement, this process has lasted so long. On one side, there was no individual portfolio at Cryptopia, so the assets were pooled. As a result, the liquidators could not determine the stocks alone with the portfolio keys.

On the other hand, Cryptopia had probably failed to match its database with Wallet's assets. As a result, the liquidators sought more inventory and user information, also in collaboration with third-party suppliers.

Cryptopia: The Bitcoin Exchange Hack and Its Consequences

Cryptopia was hacked in January 2019. As a result of this attack, the cryptographic exchange suffered significant losses, losing about $ 16 million of user assets. Although the company came back online a few months later. In the end, the officials had to announce the liquidation of their service. The former operators then named David Ruscoe and Russell Moore of Grant Thornton as insolvency administrators.

Meanwhile, the attackers continued to be active in the liquidation process. They moved Ethereum tokens to external portfolios and many Bitcoin exchanges such as Binance, Bibox and Kucoin. Subsequently, a lawsuit broke out between Cryptopia and the computer company Phoenix. The latter had worked as a service provider on the stock market, but had terminated the service contract after the announcement of Cryptopia's bankruptcy. Subsequently, the Arizona company claimed $ 1.9 million for the Bitcoin exchange. Otherwise, Phoenix has threatened to destroy all customer data.

Now Grant Thornton's bankruptcy trustees have apparently been successful and have been able to back up user data. Currently, these are transferred to a "secure environment not pirated". Meanwhile, the hack assailants in January have still not been identified.

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