Cryptocurrency exchange Cryptopia has appointed liquidators, after the company failed to return its business to profitability. Managements tried to cut some costs, but not enough to maintain a healthy business. This was announced by audit firm network Grant Thornton New Zealand on Wednesday.
The liquidators will conduct an investigation that can take months. It's their task to secure assets for the benefit of stakeholders. All trading services have been suspended and nothing can be withdrawn. After this process investors trading on the exchange can only be lucky to receive their coins again.
In January this year the New Zealand-based cryptocurrency exchange got hacked. The company lost $16 million worth of ethereum and ERC20 tokens. Cryptopia re-opened its business in March, but still had banking issues. Many people using the platform for trading have been unable to withdraw any funds at all, since the hack in January.
It's not unthinkable that investors with money on the exchange will take legal action. On social media some of them out their frustration while others are organizing for a lawsuit.
Justin Sun and CZ to the rescue?
On the other side of Twitter there are people suggesting that Changpeng Zhao, the CEO of Binance, and Justin Sun, the CEO of Tron, should chip in to safe the New Zealand-based exchange. Earlier this month Sun offered $40 million to help out Binance after it got hacked, while Cryptopia only needs a small piece of that amount to get back in business.
Justin Sun investing in Cryptopia would make sense. He would be the boss of a major exchange, and basically buy himself a platform to market his own Tronix (TRX) and BitTorrent Token (BTT). On top of that he can connect the exchange with the Tron blockchain, enabling trading for dozens of TRC10 en TRC20 tokens. Cryptopia would be a major move for Sun, and adds another 2 million clients to Tron ever expanding market reach.
Posted from my blog: https://www.nederob.nl/2019/05/15/trading-suspended-as-cryptopia-is-closing-down/