- The reason for the liquidation is that the crypto exchange has not succeeded in making it profitable again after the attack.
Earlier this year, the New Zealand based crypto exchange Cryptopia revealed that they were the target of a hacking attack. The attack lasted for two weeks before the exchange regained control of its wallets, but then crypto assets at an estimated value of $16 million had been stolen from the exchange.
Now, the consulting and auditing firm Grant Thornton New Zealand has announced that Cryptopia will be liquidated. This means that the exchange’s assets will be converted into money to pay its debts, which in reality means that the exchange will be shut down.
Will conduct an investigation
The audit firm will now conduct an investigation and secure assets in the company. It is expected that the investigation will take several months. Meanwhile, all trading on the exchange will be suspended.
The reason for the liquidation is that the crypto exchange has not succeeded in making it profitable again after the hacking attack despite the management’s attempt to reduce costs, Coindesk writes.