Users of Cryptopia, the exchange that was hacked in 2019, win the court’s right to their funds

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Users of Cryptopia, the currently non-existent New Zealand exchange, are given the right to recover their cryptocurrency funds in court. The court estimated that the exchange was close to $ 100 million.

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Crypto exchange users, CryptopiaThose who suffered a hack last year are entitled to their funds, as the Court ruled on Wednesday. In a court ruling, a New Zealand court ruled that digital assets were classified as “propertyFrom the users who give them the right to get their money back.

Cryptopia: hacking and liquidation

The change from New Zealand, Cryptopia He was the victim of an attack last year that resulted in significant losses for the company. At that point, it was revealed that the attackers had stolen around $ 17 million in different cryptocurrencies.

After the attack, the change It resumed operations amid a series of banking problems. The decision did not last long for the stock exchange, which entered the liquidation phase in May 2019 and ceased operations. At that time, the company was for professional services Grant Thornton New Zealandwas commissioned to monitor the liquidation process of Cryptopia.

Cryptopia users win in court

This Wednesday, Judge Gendall J. at the Christchurch Supreme Court in New Zealand ruled in a pioneering 74-page sentence that cryptocurrencies “propertyPursuant to Appendix 2 of the country’s company law of 1993. In the published document, the judge stated:

I conclude that the cryptocurrencies that are here on the Cryptopia exchange are a kind of intangible personal property and clearly a thing of identifiable value. The argument that cryptocurrency is just information and therefore not proprietary is simple and, in my opinion, wrong in the current context. I reject it.

An alternative decision would have been to distribute the assets classified as normal debt to users and creditors. This Thursday, Cryptopia tweeted that the judgment means that “Cryptocurrencies belong to the account holders and not the company’s assets“”

The company owes him more than 800,000 users who now need to receive refunds. However, 37 creditors and 90 shareholders also lost their share in the remaining assets of the change.

After the judgment Cryptopia There are currently approximately NZ $ 170 million (US $ 101 million) available. The outcome of the Court’s decision will allow liquidators to start distributing funds.

50% of the total refund

Grant Thornton New ZealandThe company that was liquidated last year is still trying to determine the details of the refund. Because of bad records from Cryptopiathe company did not recognize which users had which cryptocurrencies.

It should be noted that, although the Court’s ruling stipulates that account holders must receive reimbursements, the judge determined that the assets available to liquidate creditors are expected to be approximately $ 3.22 million.

This number would be less than 50% of the claim and would total $ 7.57 million. In addition, the New Zealand tax department is behind part of this amount ($ 2.9 million).

Beyond the ruling, however, the problem for liquidators could be complicated when determining ownership of every cryptocurrency holder. This is especially important after the company announced some customers in the past year Cryptopia They didn’t have individual wallets. In these cases, their funds were pooled and the stock market kept details of customers’ holdings in their database.

As already mentioned CointelegraphIn such cases, the affected digital assets must be treated in accordance with the New Zealand Trustees Act.

Related articles

Exchange Cryptopia owes its creditors $ 2.7 million

Exchange Cryptopia files for bankruptcy

Sources: TheBlock, Coindesk, Cointelegraph

Hannah Estefanía Pérez ‘version / DailyBitcoin

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