Investors hoping to recover their frozen funds from the now-defunct crypto exchange Cryptopia may be in for a world of hurt as a report now indicates the exchange’s liquidator can’t access any of its data.
According to a recent report by Bloomberg, Cryptopia owes a third-party server company in Arizona around $2 million and, until this amount is paid, the company won’t release the data to liquidators working on fund redistribution.
The liquidator described the situation as “potentially catastrophic for the liquidators and account holders.”
As for the hacked wallets, “recovery efforts are still being made, but to date, none of the stolen digital assets have been recovered.”
Cryptopia is currently filing for U.S. bankruptcy after it failed to recover from the January hack where more than $16 million was stolen from the exchange. In the current liquidation, every account holder is a potential creditor, and trade creditors are owed about $2.6 million.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.