Every crypto holder who makes use of crypto exchanges dreads the event where their exchange of choice is hacked or compromised in any way. This has occurred in the past to both the largest crypto exchanges like Mt.Gox or small ones like Maplecoin. These sorts of occurrences can have far-reaching effects for an exchange as some of them may not able to bounce back and have to shut down altogether and sometimes, with their users never being able to recover their funds which were on the exchange. All this considered, the process of a crypto exchange trying to recover or compensate users after hacks can take months and even years.
According to the liquidators of now defunct-exchange Cryptopia, they have been able to recover millions in funds so far but the recovery process has remained difficult and the refund deadline for former users has been deemed impracticable.
This information comes courtesy of the second progress report by Grant Thornton about Cryptopia’s progress and according to the report, between May and November 2019, they have been able to recover roughly $7.18 million. At the same time, the expenses associated with the recovery as well as payment to a number of creditors cost $2.46 million and this brings the nets recovered sum to $4.74 million.
“We continue to investigate the affairs of the Company and its directors in the period prior to our appointment to determine if there are any further avenues of recovery available to the Company,” the report says.
As for those who are still waiting for their funds to be recovered, the report states that the timeline for refund cannot be stated as of now.
“At this stage it is not practicable to estimate a completion date for the Liquidation,” the report says.
The exchange suffered a hack in January 2019 that saw $16 million being stolen by the criminals and as of now, we are trying to reconcile 900,000 active user accounts as well as the 900 different cryptocurrencies that were stored across those accounts.