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COMPANIES IN RECEIVERSHIP AND LIQUIDATION

Update for Cryptopia claimants and stakeholders 10 June 2021

10 Jun 2021

Today, Grant Thornton New Zealand released the fifth statutory report in the liquidation of Cryptopia Limited, a copy of the report can be found here.

Claims process

Since the Claims portal was launched in early December 2020, we have sent emails to all 960,000 account holders who had positive account balances according to Cryptopia’s Records. At the date of this update, we have had 71% of users by value that have interacted with us in some way up from 57% in March 2021. The claims process is still at stage 1 of the below process:

  Process Details
1 Claims registration Allows the registration of account holders' details and to make claims for their account balances
2 Identity verification Verifies account holders' identities to the necessary verification standard
3 Claim acceptance Provides Account holders’ opportunity to agree that Cryptopia records represents amount due
4 Asset transfer Instigates asset transfers to account holders

While we have a significant number of claimants registering successfully, we appreciate that there are also a number who require support to complete the registration process. Our customer support team via the customer support portal has to date supported over 55,000 users through the registration process.

We continue to build the team to assist account holders to complete the claims and asset transfer process. We assure you that we will action all outstanding tickets prior to moving to stage 4 of the process.

If you are having issues with the registration, please refer to the ‘Update for Cryptopia Claimants & Common Portal Errors 16 December 2020' page.

We continue to promote the portal to accountholders to encourage increased participation and will continue to send further emails inviting account holders to register their details on the portal.
The next stage of the claim process 2 ‘Identity verification’ will be piloted this month to test functionality with all 183 countries that we understand Cryptopia users are domiciled. Following this pilot this process will be rolled out to all users who have completed claim process 1 ‘claims registration’.

Following this the Claims acceptance stage will be launched, where account holders will be given the opportunity to agree or dispute the balances that were recorded by Cryptopia at the date of Liquidation.

The asset transfer stage will follow on from this. However, the transfer stage will require the input and approval of the Court particularly in relation to the following:

  • Approving a distribution model that reflects the nature of stakeholders’ property
  • Confirming what is to be done with unclaimed Crypto-assets
  • Setting a cut-off date for claims to be received and assessed

We anticipate to file applications on these matters in the next couple of months.

With the number of Cryptocurrency projects that have significant holdings frozen in Cryptopia wallets we will seek to further engage with coin development teams where possible to consider the impact that the 4th stage could have on the viability of the project and seek their input on the most efficient process to assist in this transfer.

Where to go for updates

We appreciate that you want to be advised of our progress on the Cryptopia liquidation with our next statutory report due in December 2021. We will continue to update you as further information comes to hand and provide updates on the claims process. Updates can be found on the Grant Thornton New Zealand website, as well as the social media channels for Grant Thornton and Cryptopia.