This is a good question! We understand that the Cryptopia Rescue solution might seem to come under the “too good to be true” category; so we will explain why we are doing this and what we get out of it.
Cryptopia Rescue is aligned with the Cogito Metaverse. The Cogito Metaverse is a new way of doing finance, with its own currency called the Cog. The Cog is asset and cash backed and linked to the Euro. It is a digital fiat currency and not a crypto currency. The Cogito Metaverse has all of the infrastructure and security to handle the KYC and AML compliance issues for Cryptopia; and in addition has made the connections necessary to manage the transferring of coins from the Cryptopia Wallets to a new exchange. As with all class actions, there will be a cost to the wallet holders, but wallet holders will be able to choose a plan that suits them. Any wallet holders that have already registered and paid, will have their payment reimbursed to them.
What does the Cogito Metaverse get out of it?
The Cogito Metaverse has been in development for several years now and was opened to registrations during 2021. Stage one of the Cogito Metaverse is to build the e-resident base. Simply put, the Cogito Metaverse does not actually make any money from facilitating the Cryptopia Rescue package, but the process of registration means that Cryptopia wallet holders also register in the Cogito Metaverse. For the Cogito Metaverse, the more people that learn about it, the faster it will grow; and for the Cryptopia wallet holders, they will have the opportunity to be part of the Cogito model and gain the benefits of the Cogito Metaverse. The alternative for wallet holders who chose not to be part of the Cryptopia Rescue package, is to wait for the liquidator to wind up the business and distribute coins. The issue that Cryptopia Rescue sees with this is, that we do not believe that the Liquidator has followed the due legal process to be able to carry this out. In addition, the Liquidator has not provided any evidence that they have the technology or infrastructure to carry out the necessary compliance or the ability to safely transfer coins to another exchange.
What this means for the wallet holders
For wallet holders who chose to register with Cryptopia Rescue, there are several advantages. It means that they are able to maintain their privacy, it is a cost effective method to get their coins back and they get to join a claim for accountability and possibly compensation from the liquidator. The class action is an opt out action, you can read more about opt-out actions here https://www.minterellison.co.nz/our-view/class-actions-are-we-in-or-out.
Currently Cryptopia Rescue is preparing proceedings against the Liquidator, and they will be available here once they have been filed.