Grant Thornton is required to comply with a number of mandatory procedures, including KYC and AML before reimbursing users.
Auditing company Grant Thornton – liquidator of Cryptopia – plans to start accepting applications for the return of user funds by the end of the year. The auditor will be able to start reimbursing after all regulatory requirements are met.
Recall that the NZ cryptoexchange Cryptopia couldn’t resume its activity after being hacked in early 2019. In mid-January, the exchange stopped its work, and in May of the same year it was liquidated. As a result of the attack, Cryptopia clients lost more than $ 17 million in Ethereum and other ERC-20 tokens. At the time of the hack, the exchange served more than 900 thousand clients, and assets worth about $ 170 million were stored on its accounts.
In March, Grant Thornton went to court to find out who owns the funds that users hold on the exchange’s accounts. As part of the restitution process, Cryptopia’s investors were divided into two categories: lenders who invested directly in the exchange and account holders who simply kept their assets on the platform. The court classified the assets in the accounts as “property,” and the exchange’s clients were given priority over creditors.
In a new report, Grant Thornton says it cannot initiate payments until it completes several mandatory procedures. The auditor plans to start the claims review process followed by AML [anti-money laundering procedures]. At the same time, the company does not exclude the likelihood of re-applying to the court to agree on some details.
“As liquidators, we are obliged to comply with New Zealand laws and cannot simply return tokens to account holders without going through the appropriate KYC procedures.”
The report of the company
Account holders will, if possible, receive their assets in cryptocurrency. However, the auditor draws attention to the fact that a detailed reconciliation of information from the client base with real assets on wallets has never been made. The Company believes that some account balances may not correspond to actual inventory.