An international tech company that claims it lost $27 million in the Cryptopia hack today served the company's liquidators with a legal warning.
GNY alleges Cryptopia's liquidators from Grant Thronton have breached their duties by not acknowledging their claim, nor investigating the cause of the January 2019 hack.
Liquidators David Ruscoe and Russell Moore said in a statement they fully denied the claims.
"We understand that this is a difficult time for creditors. However, the allegations made by this creditor have no merit and we fully deny them."
GNY founder Cosmas Wong spoke to Newshub exclusively from London.
He says its losses accrued after the company created its own cryptocurrency token called LML, and sold it through the Christchurch-based cryptocurrency exchange Cryptopia.
"People seemed to like it, volumes were going up, prices were going up, we were pretty shocked in January when the news came around that it was hacked," Wong said.
That hack, he says, saw all of its tokens stolen and caused LML's price to crash, costing an alleged $27 million.
GNY attempted to sue Cryptopia for the security breach.
"We said you guys lost the cryptocurrencies you have to make amends, you have to pay it back."
Instead, the company was placed in liquidation in May last year.
"At the time, I think it made us feel hopeful."
But now, more than one year on, GNY has launched a fresh legal warning, this time against the liquidator's who had clipped the ticket to the tune of almost $1.8 million.
"We feel that that amount of money that the company has is being whittled down, and we're very concerned," Wong said.
The liquidators had been busy, with work to date including hearings at courts here and in the United States, freezing crypto-assets and preserving information held on offshore servers.
Their reports said just $3 million was owed to unsecured creditors.
Liquidators said the case was "extremely complex".
"We are focused on securing the assets for the benefit of all stakeholders."
Wong said he hoped for better communication with the liquidators, although was not sure if his company's funds would ever be returned.
Police sources told Newshub they were still investigating the hack, but would not say if any suspects had been identified.
