When cryptocurrency exchanges fail, a seismic shock shudders through the cryptosphere. With thousands of users, from traders to companies, left out of pocket, litigation is inevitable in a bid to claw back some of the losses. Cryptopia is the latest in a long line of exchanges to face a litany of lawsuits from anguished creditors.
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GNY.io Heads the Queue of Creditors Knocking at Cryptopia’s Door
GNY.io, a machine learning platform for blockchain applications, was the largest wallet holder in the now defunct Cryptopia exchange, which closed its doors in April after suffering a devastating hack three months earlier. Despite briefly reopening for trading, the New Zealand exchange was unable to make it work, and abruptly ceased operations, leaving thousands of users out of pocket, and with little recourse.
The Channel Islands-based GNY.io has refused to write off its losses, however, and issued a statement on May 16 detailing the claim it filed in the High Court of New Zealand. GNY.io reports losses of more than 492 BTC, valued at $2.5M at the time of the claim, but now worth $4.2M in BTC terms. The digital assets that the company held on Cryptopia were Lisk Machine Learning (LML) tokens, which according to Coinlore are now only tradable on Bitbay. 15.4M LML tokens were lost as a result of Cryptopia’s collapse, comprising all of the LML that GNY.io held.
The machine learning company isn’t the only Cryptopia victim now seeking recourse through the courts. Grant Thornton is overseeing liquidation on behalf of Cryptopia, and produced its first liquidation report on May 31. Explaining the decision to reopen and then close the exchange,
