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Update for Cryptopia account holders 13 November 2020

We refer to our previous update of 18 September 2020 and provide you with a further update on progress since then.

We have continued with our investigation into the affairs of the business prior to our appointment to determine if further recoveries are available for creditors. This is ongoing. 

While investigating the affairs of the business we have also maintained our focus on the development of a claims process that achieves the following objectives:

  • Claims registration
  • Identity verification
  • Asset Transfer

The claim registration process is on track to be released in early December. We will ask all account holders to register their claim and start the process of verifying their identity following the release.

Please be aware that due to an error by court staff at the Christchurch High Court, information containing certain customer data has been provided to an unauthorised third party. We consider this information confidential and sensitive, and we are concerned that this third party may attempt to use it to mislead and influence account holders’ decision making. We have taken steps to restrain the misuse of this confidential information and to recover it from the third party. 

We understand that this party is associated with a scheme named Cryptopia Rescue and a New Zealand company.

Cryptopia Rescue is claiming that we as the Liquidators will not abide by the judgment of Justice Gendall. It is important to remember that we initiated the hearing to get the directions and, as previously stated, we will adhere to Justice Gendall's decision. Not to do so would be in breach of the Court’s directions made on our application.

Those Court directions require that repatriation of customer holdings is to be in Crypto where possible. We are working towards paying as many users in Crypto as possible.

Cryptopia Rescue is encouraging members to contribute to their scheme by paying a monetary contribution as a means of forcing us to work with them to supposedly fast track repayment of funds to certain users ahead of others, which is not in line with New Zealand Law.

As Liquidators, we will not ask you to deposit any further crypto-assets or fiat to return Account Holders' property. To pay funds to another party to supposedly enforce directions we are following is unnecessary.

We urge Account Holders to take care to ensure that any communications asking you to deposit further funds are not scams, and to carefully read all terms and conditions of any proposals from third parties.

Members are being asked to sign powers of attorney and enter into an agreement with a 'principality' that does not physically exist. We encourage account holders to seek legal advice before they enter into any such agreements and agree to settlement of property in an unreleased, unknown and unregulated Cryptocurrency as consideration for a part of or all the account holders’ entitlement.

We must warn that anyone outside of the official communication channels claiming to have access to the confidential information or offering to tell account holders what balances are in their accounts is doing so without the Liquidators' authority.  This includes Cryptopia Rescue. Please be wary of any such approaches and note that any communications relating to the Liquidation will come from the official channels such as the Grant Thornton website, or the Grant Thornton and Cryptopia Facebook and Twitter accounts.