New Zealand based cryptocurrency exchange, Cryptopia, shuts down

New Zealand based cryptocurrency exchange, Cryptopia, shuts down. The exchange announced on its homepage that the exchange has hired liquidators, David Ruscoe, and Russell Moore, from Grant Thompson to begin the liquidation process.

“Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was, in the best interests of customers, staff and other stakeholders.

The liquidators are focused on securing the assets for the benefit of all stakeholders. While this process and investigations take place, trading on the exchange is suspended.

“Given the complexities involved we expect the investigation to take months rather than weeks.”

The liquidators are also working with independent experts and the relevant authorities with regards to the company’s obligations.”, read the homepage of Cryptopia.

On January 2019, the exchange suffered a crippling hack. $23 million worth of tokens were stolen from the exchange. The exchange shut down its operation down for 3 months where they reviewed the security as well tried to recover the funds.

The exchange opened again in March 2019 but failed to attract new users. The exchange also failed to bring back its old customers and return to profitability.

The exchange shuts down at a moment when Bitcoin [BTC] is in a bull market. Most of the traders of Cryptopia, did not trade Bitcoins on the exchange but rather new and not so well known tokens.

According to reports from Stuff.nz, Cryptopia downsized its number of employees in the past couple of week leaving only a skeleton crew to manage the operations. The entire Cryptopia premise’s gate has been shut down with a padlock.

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