Update on how we see things moving forward.
As many of us have now experienced, the liquidator has made the process for registering on his portal incredibly difficult. There is likely to be a few reasons for this and speculation is any of the following.
· By eliminating the majority of claimants the process enables the liquidator to take further fees from the sale of coins being held.
· Making the registration process so difficult forces claimants to either forfeit their claim or take court proceedings. (see below)
The New Zealand law fails to support small claim beneficiaries by making the process to make claim expensive, especially for non resident beneficiaries.
The regulations relating to the distribution of coins fall under a couple of bits of legislation. One we expect the liquidator to rely on is the Trustee Act 1956. Section 75 of this Act enables the liquidator to reject any claim. You can read that section here.
That action would force account holders to take legal action against the liquidator in order to prove their identity and claim. More about that process is in section 76 here.
The High Court order from April (refer to the picture attached) orders that this will be the required process, that order is here page 67 item #199 and #200 start to deal with this.
As an absolute minimum we would estimate the costs for a single person to make claim would start at around $5,000 and increase from there depending on the liquidators response.
Cryptopia Rescue was established with the anticipation that the only way to get action for the small account holders would be some form of joint of class action. If you want your coins back from Cryptopia without spending much on legal fees then you need to join our joint action.
