Cryptopia's Customers Might Not Get Their Money Back

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Cryptopia's Customers Might Not Get Their Money Back

Grant Thornton, a company specializing in taxes and auditing, made an announcement regarding progress in securing funds stolen from the Cryptopia exchange.

The End of Cryptopia

Cryptopia's liquidator informed interested parties about progress in securing cryptocurrency capitals stolen from the exchange during a hacker attack earlier this year, in January. In the announcement there are two reasons presented as preventing the acceleration of the process. Apparently, the customers of the cryptocurrency exchange did not have individual wallets, which is the reason why all of the funds were "thrown into one bag". Based on the keys of the wallets only, which Cryptopia had in its database, it is not possible to determine the ownership of each customer. Moreover, according to the audit company, there has never been any agreement between the database and the funds in the wallets. The company hoped that this would reveal account details.
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. These must be reconciled one-by-one.

Recovered funds

The company emphasizes that it is still unclear if it will be possible to recover all the funds stolen during the January attack. Such an operation requires cooperation with external bodies. In May, Grant Thornton company published estimated losses for Cryptopia. The exchange owes its customers over USD 4.22 million.