Liquidators have told users of defunct Cryptopia exchange that they will be able to register claims for their assets by the end of 2020.
In a precedent setting case for New Zealand law, the judge described digital currency as “property.”
New Zealand-based crypto exchange Cryptopia was likely in breach of its compliance obligations in the run up to being hacked.
Grant Thornton New Zealand spelled out the difficulties that remain in identifying the ownership of the cryptocurrency.
Earlier this year, the Cryptopia cryptocurrency exchange in New Zealand was hit by a massive attack that reportedly saw it lose $15 million in held funds.
Grant Thornton, which was appointed to manage the liquidation, confirmed it had difficulty in obtaining data from Cryptopia servers.
Cryptopia knows it owes money to some of its creditors, but has no clue how much it owes customers, revealing a mess that only a cryptocurrency exchange could have created.
Cryptopia’s role as an exchange for the desperate is becoming clear as its liquidators beg the U.S. to help them out.
The new exchange, known as Assetylene, has been developed by Adam Clark—the founder and lead programmer behind Cryptopia.
Cryptopia was reportedly hacked and millions of dollars” in crypto was lost, including Ether (ETH) and Centrality (CENNZ).
Customers of the debt-ridden New Zealand exchange will have to wait until the investigation into the hack is completed before they can get their assets back.