A group of us  have funded and advocated for a small number of account holders to get accountability from Grant Thornton, the liquidator of Cryptopia. It might be helpful to note at this point, that we have been invited and have started this same process with FTX Liquidation also. 

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Opposition to Asset Sales:

We have actively opposed the sale of additional account holders' assets to fund the liquidation, ensuring that your interests are protected and that potential value is preserved.

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Application for an Independent Lawyer:

We've taken steps to have an independent lawyer appointed to truly represent your interests. This move aims to provide stronger legal representation and advocate for your rights which are currently not being respected.

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Settlement Proposal:

A settlement proposal has been presented by Classic Focus Ltd and Principality of Cogito. This proposal offers compensation in the form of Cog digital currency, addressing the losses experienced by Cryptopia users.

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Communication of the Offer:

We are actively communicating the details of this settlement proposal to ensure that you, as account holders, have the opportunity to consider the offer and decide how to proceed.

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Upcoming Court Hearing:

We are preparing to be heard at an upcoming court hearing scheduled for November 13, 2023. This action is aimed at holding Grant Thornton accountable for specific actions, ensuring that your interests are represented. These actions have been taken with the primary goal of securing compensation and protecting the interests of Cryptopia claimants. We are committed to advocating for your rights and addressing the consequences of the Cryptopia hack and liquidation process.

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Actions Taken by the Liquidator (Grant Thornton):

• Selling of Assets: Grant Thornton, the liquidator, proceeded with the sale of some account holders' assets to fund the liquidation. The court ordered the sale of these assets, a decision that Grant Thornton executed.

• Communication Delays: The liquidator faced criticism for significant delays in communicating key decisions and reasons behind those decisions. For example, the judge's reasons for ordering the sale of assets were not released until weeks after the appeal date had passed, making it challenging for account holders to raise an appeal.

• Limited Communication: There have been concerns that the liquidator did not effectively communicate with a significant portion of the account holders, approximately 800,000, who were perceived to have holdings of lesser value. Many account holders have reportedly not received communication updates since December 2020.

• Claim Portal: Grant Thornton initiated a claims portal process, but only around 4% of the 960,000 account holders with coins managed to get through this process. This relatively low participation rate has raised serious concerns.

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Actions Not Taken by the Liquidator:

• Release of Proposal: The liquidator did not release the settlement proposal from Classic Focus Ltd and Principality of Cogito to the account holders. This has led to external parties taking the initiative to inform account holders about the proposal.

• Email Neglect: While there was an initial effort to email account holders, in practice, the liquidator has not communicated with all account holders since December 2020. Furthermore, anyone with holdings valued at less than $20, according to the liquidator's valuation, was reportedly neglected in email updates.

 

This summary provides an overview of actions taken and not taken by the liquidator in the Cryptopia case. It reflects the challenges and criticisms that have arisen in the process, as well as the responses and initiatives taken by external parties to address the concerns of account holders.