ColossusXT Brief — Public Disclosure About Ongoing Cryptopia Liquidation
The ColossusXT team strives to provide transparent and timely updates. Recently we met with Grant Thornton liquidators with regards to ColossusXT investors, and Cryptopia users; within this update we will outline any new information available and provide details that may dispel rumors circulating within the blockchain community. Please keep in mind these timelines are tentative and may be adjusted by Grant Thornton. We will make any new information available as we receive it.
What is the current timeline? (Phases)
Phase 1: Complete
* Get Direct Control of Assets
* Secure and Identify Assets
* Relocate Assets
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
Phase 2: Ongoing (Expected Completion around X-Mas 2019)
* Confirm Amounts
* Confirm Amounts with Cryptopia Database (match amounts, with Cryptopia database)
* Ensure no Malicious code
* Set up each individual wallet (over 800 wallets)
* Conduct Reconcilliation
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
Phase 3: No definitive timeline. 2020 Start anticipated
* Return assets back to Cryptopia customers
* KYC on each person requesting assets back (largest and longest task)
Questions & Answers to the best of ColossusXT Team’s knowledge
Is Grant Thornton investigating the hack?
No, they are not investigating the hack. They are providing information they may come across during their liquidation process to law enforcement, but Grant Thornton is not apart of the investigation.
Are they retrieving hacked funds that were blocked on exchanges?
Yes, they are working with exchanges, and NZ courts to retrieve funds that were blocked and recovered on exchanges.
What is Grant Thorntons obligation to me (Cryptopia account holder)?
Grant Thornton has no obligations to anyone who held their assets on Cryptopia; their obligations are to the creditors.
Will I get my assets back, or something in lieu of assets?
New Zealand courts will determine if you receive your crypto assets back, or NZ or USD equivalency. This has yet to be communicated to us as something determined by the courts already at this time.
Will I have to KYC to have my assets returned to me?
Yes, Grant Thornton must comply with AML procedures and in order to retrieve any assets back Cryptopia customers must perform KYC. We did ask for an example of what type of KYC procedures would be enacted on customers. They believe at this time you will be required to provide a photograph ID as well as a picture holding up your ID or a note; these KYC procedures may be structured different as they approach phase 3.
What about the “haircuts” that took place prior to Cryptopia going into liquidation?
Grant Thornton did not seem to be aware of the “haircuts”, or they didn’t seem to understand the situation.
If I dont KYC can I still have my assets returned?
No, if you are unable to complete KYC for any reason, than your assets will be turned over to a public trust of New Zealand.
What happens with unclaimed coins/tokens?
All unclaimed coins and tokens will be turned over to a New Zealand public trust. How these funds may or may not be used was not communicated with us.
Is Grant Thornton selling assets now? How are they paying for things?
Grant Thornton has not begun selling customer assets. They are currently still putting together each wallet. They are using Cryptopia’s leftover BTC currently. When they took over the account it was estimated to be around 300 BTC.
Is any of that 300 BTC attributed with the “haircuts”?
There is no clear answer for this at the time. Grant Thornton seemed to have little information or even be aware of the “haircuts” that took place.
The project I was invested in on Cryptopia was unaffected by the hack, will these coins be returned priority?
Grant Thornton claimed that they intended to maximize returns to customers with unaffected projects; it’s also important to bear in mind that Grant Thornton has no legal obligation to you as well. (Tread lightly with this particular question)
How will Grant Thornton contact me for reimbursement of my coins?
During Phase 3 they will be reaching out and relying heavily on projects to disseminate information to their communities on how to obtain their assets. Please keep this timeline above in mind and remember to check your emails, discord or Twitter for updates.
Summary
The ColossusXT team strives to maintain transparency with our community. As the Cryptopia hack and Grant Thornton liquidation continues we will keep in contact with Grant Thornton and continue to update the community as more information is made available.
If you have any more questions with regards to Grant Thornton or the Cryptopia hack that we didn’t answer in this update, don’t hesitate to reach out. If we don’t know the answer to your question, we will seek clarification directly from Grant Thornton.
Follow our social channels below for future announcements.
Thank You,
ColossusXT Team
ColossusXT LLC is a registered business in Wyoming, USA.
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