Cryptopia files petition in US Bankruptcy Court

Cryptopia founders Adam Clark and Rob Dawson. Photo / File

The liquidators of Christchurch-based Cryptopia have filed a petition in the Bankruptcy Court in New York to preserve the company's information stored on servers in the US.

The first report into Cryptopia's affairs, released yesterday, revealed the steps being taken by liquidators David Ruscoe and Russell Moore to secure the company's assets.

According to the report, liquidators are continuing the process, begun before the company was placed in liquidation, of recovering crypto-assets compromised from the hack of Cryptopia's exchange.

In mid-January, owners of Cryptopia – Adam Clark and Rob Dawson – called the Police after a cyber-attack saw an unknown amount - never confirmed but said to be in the tens of millions - siphoned off by hackers.

Liquidators gained a Court Order from the New Zealand Courts allowing them to utilise certain crypto-assets to recover, preserve and protect assets.

The liquidators say they cannot estimate a date for when the liquidation will be completed.

"As liquidators we have a responsibility to protect and preserve crypto-asset holdings for the benefit of those entitled to them," Moore said.

"We are aware of and understand the frustration of Cryptopia's customers. As there is no legal precedent on crypto assets in New Zealand and worldwide, the distribution of those assets and the overall conduct of the liquidation will require significant direction from the New Zealand Courts."

Police have not commented publicly since mid-February, but earlier this week told the Herald there was no update to report but that inquiries were ongoing.