Cryptopia Verified Users Can Now Make Claims For Funds Recovery

The infamous hack of Cryptopia led to an uproar in the crypto space, due to the popularity the exchange had gotten ever since its surge in 2018. Software hacks were still perpetuated severally despite the platform’s security measures. Around January last year, when the company officially informed the public of its hack, it explained that the breach resulted in many losses through a tweet from the official account.

After the breach occurred, a serious investigation took place while the exchange’s commercial transactions were put on hold. Even during the investigation, the hacks did not stop, and the perpetrators kept stealing data from the software. The company reported several million in losses caused by the unexpected breach. After more than a year of the hack, investors can now recover their lost funds.

New Zealand accountancy opens a portal for funds recovery

On December 9, the New Zealand branch revealed that former customers could make their claims on the portal in a bid to recover their lost funds. The claim is needed to collect funds still in the custody of the exchange. As a safety measure, the company froze all their customers account to prevent further theft of funds after the hack already made way with millions worth of investments preventing customers from withdrawing.

Grant Thornton of the branch of accountancy made it known to affected people that the claim making process would occur in several batches. After users won the case to have their funds recovered, the company has no choice than to follow the High court’s order. Four months after the company’s losses, it filed for bankruptcy to be able to protect its data stored on a server.

Almost a million former customers are to be informed of the recent developments on the purpose of recovering their money. To curb fraudsters from making claims, only verified former users that would be able to do it, following the final ruling of a High court in the region, who confirmed that digital assets are a property class and must be recoverable by the users.

After the ruling, the claim portal was created to fulfil the authority’s position. Some sources suggest that the funds would soon be recoverable based on the recent step the company is taking to make things right and the active involvement of the liquidator of the former exchange.

How cyberattacks have led to the collapse of several businesses

Security breaches like this have put thousands of businesses on hold and have resulted in debts in some cases. The internet has made the platform vulnerable to cyber attacks, especially in the crypto space where token transfers cannot be traced. The anonymous groups have instilled fear into many companies who have used the opportunity to beef up their cybersecurity.

Around the time the hack took place, the exchange had over $100 million worth of digital assets. Several holders are hoping to have a substantial share of the defunct exchange’s asset. With numerous users of platform on the line, almost 40 creditors and several shareholders would be entitled to the remains of the exchange’s liquidated assets.