Cryptopia Halts Its Trading After The Theft. Users Claim This To Be An Exit Scam

Cryptopia, the New Zealand based cryptocurrency exchange which was in the news for being the first crypto exchange that was a target of multi-million dollar theft in 2019, announced the suspension of the trading on the exchange.

The company’s efforts in retaining the company by reducing the cost and return the business to profitability have failed. The theft certainly has left a severe impact on it. The company was forced to go offline for a significant amount of time after the theft.

The users of Cryptopia were panicked to see that the company’s website went down suddenly on Tuesday. However, the company notified the users that the website was down due to some maintenance activity that was taking place in the background. Even after the notification, users were still worried and suspected another hacking attack might be taking place.

However, on Wednesday morning Cryptopia announced officially regarding the suspension of the exchange and it had appointed David Ruscoe and Russell Moore from Grant Thornton New Zealand as the liquidators for Cryptopia. The liquidators seem to be focusing on the benefits of the stakeholders and securing the company assets. It also mentioned that the investigation would also be in progress along with the other processes. The company also urged its users to stop depositing funds in cryptopia exchange and halted deposits.

Some of the client’s of Cryptopia strongly believe that the steps taken by the company are not in favor of the stakeholders and do not agree in disabling the trading needs as this would prevent the investors from withdrawing their investment back from the exchange. The clients are more worried after the liquidators confirmed that the investment would take months rather than weeks, which means that the stakeholders will not be able to secure their funds for a significant amount of time.

This has resulted in making the users angry. Hence, many of them are accusing the company of fraud, claiming this to be an exit scam. Few users still hope and believe that the company and the liquidators will refund their money. An initial report on this would be released in the next few days, and Grant Thornton will contact all of its customers according to the release.