We followed the Arab Bitcoin website and we are still following the case of the hacking of the “Cryptopia” platform, which is subject to a liquidation process by the accounting giant “Grant Thornton”.

Evidence provided by liquidators indicates that New Zealand-based cryptocurrency exchange Cryptopia failed to comply with anti-money laundering (AML) rules before it was hacked in January 2019.

According to the site “NZ Herald” The company’s liquidators have submitted new evidence to the Christchurch High Court indicating that the Cryptopia platform did not comply with all legal requirements when setting up trading accounts for new clients.

According to David Roscoe, a liquidator from the accounting firm, he told that he is currently working with the New Zealand Police Service and the Department of Home Affairs on ongoing investigations into Cryptopia’s compliance with AML regulations.

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In an affidavit filed with the court, Cryptopia’s liquidator commented:

We have carefully considered the limited personally identifiable information available because, in our view, it raises many issues including AML compliance.

According to the liquidators, Cryptopia has not yet been able to provide detailed information for around 933,000 active user accounts.

Also, Cryptopia allegedly did not place trade restrictions on more than 44,000 early user accounts believed to hold $23 million in cryptocurrency.

In addition to the new data that was revealed, there are 9,475 Kryptopia customers from New Zealand, while the rest, 2.2 million outside New Zealand, are from the United States, Russia, Britain, Japan, Brazil and South Korea.

An unspecified number of user accounts allegedly containing $3 million in crypto were also traced to uninhabited tropical islands near Australia.

This has raised further questions about Cryptopia’s compliance with KYC regulations.

Cryptopia is another example of a failed cryptocurrency exchange

Evidence presented by liquidator Grant Thornton is part of a four-day court hearing that began Tuesday, February 11, 2020 to ascertain the crypto-property of approximately $250 million in crypto.

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Crypto traders will be asked Provide additional information to verify their identity and comply with anti-money laundering laws Before receiving their cryptocurrency from the Cryptopia platform.

Cryptopia, which previously listed more than 800 different cryptocurrencies including Bitcoin and Ethereum, has seen a killer whirl since it was hacked in January 2019.

The company announced significant losses and theft of $23 million in crypto.

Less than a month later, the platform suffered another hack which resulted in the loss of about 1,675 ETH which is worth about $16 million at the time of writing.

The “Cryptopia” platform was re-launched in March 2019, but it was unable to continue, to announce in May 2019 its entry into the liquidation.

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