logo

Cryptopia liquidation: Judge considers cryptos as property according to the Companies Act, 1993

Cryptopia liquidation Judge considers cryptos as property according to the Companies Act

At the beginning of last year, Cryptopia, a cryptocurrency exchange from New Zealand was hacked which led to a financial loss of about $30 million. In May, it was confirmed that Cryptopia liquidation is the only way to proceed further.

Today, Cryptopia, via Twitter, broke the news of a landmark judgment by Justice Gendall J. Cryptocurrencies are considered as ‘property’, according to the judgment.

Further, the tweet read that cryptos are to be considered as ‘property’ according to section 2 of the Companies Act 1993. Also, the cryptos held by the account holders were the assets owned by the account beneficiaries and can not be considered as company assets.

Cryptopia liquidation carried out by Grant Thorton

Cryptopia was taken to the Christchurch high court in March 2020 to resolve a few conflicts. Cryptopia owned 15% of the holders’ ‘properties’ which were consisted of around 900 different cryptocurrencies.

One of the conflicts was if the account holders were the owners of all the cryptos in their accounts. Another conflict was to check if Cryptopia’s debts aligned with the creditors, who were owed approximately $12 million.

It is now believed that the creditors might get half of what the crypto exchange owed. Judge Gendall read that she is completely satisfied by the interests of all the account holders. According to the evidence which is presented before the court, it is concluded that the exchange, Cryptopia acted completely as a ‘bare trustee’.

Cryptopia liquidation- Work in progress

In simpler words, Cryptopia fulfilled all the terms and conditions of a trustee and operated as an exchange. The exchanged managed the cryptos and assets on the behalf of the account holders.

According to the website, the Cryptopia liquidation process is still in progress in which they have explained the complete procedure. Also, they have maintained regular updates for all the parties involved in the liquidation.

 

Mihir Sharma

Mihir Sharma

Mihir has always been attracted to finance, crypto, and blockchain. His Chemical Engineering background gave him the edge to make his news reports precise and concise. Leveraging his stint with English Forward News, he looks forward to his next adventure in the cryptosphere.

Related News

Hot Stories

Blockchain industry has over 81 Million active users, reports show
Explained: 2 Important Ethereum priorities after The Merge
Kitsumon launches NFT land sale in partnership with top NFT and Gaming platforms
What lies ahead for Voyager Digital and its investors after FTX wins the purchase auction?
Dogecoin price analysis: DOGE peaks at $0.063, quickly tests $0.06  

Follow Us

Industry News

What lies ahead for Voyager Digital and its investors after FTX wins the purchase auction?
What is happening with Nexo?
FTT burn Vs. BNB burn Vs. Shiba burn
Was the Wintermute hack an inside job?
Watch: Inside the Walmart Metaverse 2022